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Notice Period

Notice Period

The notice period is determined by the amount of time the employee has been employed:

  • Not more than 1 year of employment: 1 weeks’ notice
  • 1-3 years of employment: 2 weeks’ notice
  • 3-5 years of employment: 3 weeks’ notice
  • 5+ years of employment: 4 weeks’

If the employee is over the age of 45 and has been employed for at least 2 years, they are entitled to an additional week of notice.


Redundancy or Severance Pay

Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked:

  • At least 1 year but less than 2 years: 4 weeks’ severance pay
  • At least 2 years but less than 3 years: 6 weeks’ severance pay
  • At least 3 years but less than 4 years: 7 weeks’ severance pay
  • At least 4 years but less than 5 years: 8 weeks’ severance pay
  • At least 5 years but less than 6 years: 10 weeks’ severance pay
  • At least 6 years but less than 7 years: 11 weeks’ severance pay
  • At least 7 years but less than 8 years: 13 weeks’ severance pay
  • At least 8 years but less than 9 years: 14 weeks’ severance pay
  • At least 9 years but less than 10 years: 16 weeks’ severance pay
  • At least 10 years: 12 weeks’ severance pay


Probation Period

The probation period is 6 months, however, if an employer has 15 employees, it is extended to 12 months. In addition, employers are able to shorten the minimum probation period. In doing so, however, the employer forgoes the benefits of a probation period.

Termination

  • Termination of employment is when an employee’s employment with an employer ends. Employment can end for many different reasons. An employee may resign or can be dismissed (fired). However it ends, it’s important to follow the rules about dismissal, notice and final pay. There are also different rights and obligations when a job is made redundant or when a business is bankrupt. Employees covered by the national workplace relations system can apply to the Fair Work Commission for unfair dismissal if they have been terminated by their employer, or forced to resign because of something the employer did, and they have worked the minimum employment period. Minimum Employment period:
  • Employed in a small business for at least 12 months. (A small business is defined as any business with fewer than 15 employees. This is calculated on a simple headcount of all employees who are employed on a regular and systematic basis).
  • Employed in a larger business for at least 6 months.

Post termination restraints

  • Those that protect the employer’s legitimate business interests may be enforced to the extent reasonably necessary to protect those interests in all circumstances.


    Non-competes

    Typically no longer than 12 months, with some exceptions.

    Customer non-solicits

    Permissible.


    Employee non-solicits

    Permissible.

Waivers

Enforceable to waive contractual rights. Employees often cannot waive or contract out of statutory entitlements, including entitlements under a modern award or enterprise bargaining agreement.

Transfer of undertakings

At common law, employees cannot be transferred from one employer to another without their consent. Under the Fair Work Act, there are rules which apply if there has been a “transfer of business.” The transfer of business rules apply when there is a connection between 2 employers, including the sale and purchase of all or part of a business, certain outsourcing and in-sourcing arrangements and where the 2 employers are associated entities; and the new employer agrees to employ some or all employees of the old employer within 90 days and there has been no significant change to the work performed by those employees. The main effect of the transfer of business rules is that a transferrable instrument (ie, a collective labor agreement, such as an enterprise bargaining agreement) that covered the employee before the transfer will continue to apply after the transfer and all service is regarded as continuous and accrual of leave benefits transfer with the employee, with some limited exceptions. The Fair Work Commission can make certain orders altering the effect of the transfer of business rules if it deems it appropriate.

Keep updated with CXC’s expertise

Hiring employees in Australia usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC. 

Through our EoR solution, you can confidently hire employees in [country], without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.

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