Awards often require an employee to give their employer notice when they resign.

Not all employees are required to give notice. For example, casuals don’t have to give notice. See Resignation and notice for more information.

Awards usually allow an employer to deduct money from wages owed to an employee under the award if the employee doesn't give enough notice.

Model term in most awards

Most awards say that an employer can deduct an amount of up to one week’s wages from an employee’s pay if:

• the employee hasn’t given enough notice under their award
• the employee is 18 or over
• the employer didn’t agree to a shorter notice period
• the deduction isn’t unreasonable in the circumstances.

The deduction can only come from wages due under the award.

Check your award for more information about deducting pay when minimum notice isn’t given.

What is included in ‘wages due under the award’?

Wages due under the award includes pay owed for:

• ordinary hours worked, including penalties and allowances
• overtime worked
• time off instead of overtime that is owed on termination.

It doesn’t include other entitlements owed to the employee, such as:

• payment for leave taken or accumulated leave due on termination of employment
• other payments under the NES, or
• over-award payments.

Example

Zan worked for Angie as a part-time waiter at the Red Door Restaurant. His employment was covered by the Restaurant Award.

Zan was paid more than the minimum award wage for his job.

When Zan resigned he gave 2 weeks’ notice. Because he’d been employed at the restaurant for more than 5 years, he was required to give 4 weeks’ notice.

Even though Zan should have given 2 weeks’ additional notice, Angie was only able to deduct one week’s wages, at the award rate, from Zan’s final payment.

Terms of other modern awards

Some awards with different rules, or no rules that allow a deduction from final pay if minimum notice is not given by an employee, are:

• Air Pilots Award
• Australian Government Industry Award
• Black Coal Award
• Marine Towage Award
• Real Estate Award
• Teachers Award.

Check your award for more information.

Awards that don’t mention an age restriction

The following awards don’t have an age restriction on deducting wages if minimum notice isn’t given:

• Australian Government Industry Award
• Black Coal Award
• Marine Towage Award
• Teachers Award.

However, if an employee is under 18, no amounts can be deducted from their wages unless their parent or guardian agrees in writing first.

Awards that allow a different amount to be deducted

The following awards allow a different amount to be deducted if minimum notice isn’t given.

• Australian Government Industry Award
• Teachers Award.

Check your award for more information.

Awards that don’t allow for deductions

The Air Pilots Award doesn’t say an employer can deduct wages if minimum notice isn’t given.

Because of this, an employer may not be able to deduct any money from an employee's wages even if the employee hasn’t given enough notice.

Check your award for more information.

See Deducting pay and overpayments for more information about deducting pay, including in accordance with an enterprise agreement.