Termination and notice periods are where scheduling and legal compliance collide most directly for shift-based businesses — because the notice period, the final pay calculation, and any untaken leave payout all depend on records the roster is supposed to be keeping anyway. Here's what the Employment Act 1955 actually requires.
Minimum notice periods, if the contract doesn't specify
Section 12 sets statutory minimums that apply when the employment contract is silent on notice — the contract can specify longer notice, but not shorter:
| Length of service | Minimum notice |
|---|---|
| Less than 2 years | 4 weeks |
| 2 to under 5 years | 6 weeks |
| 5 years or more | 8 weeks |
Either party can end the contract without serving full notice by paying an indemnity equal to the wages that would have accrued during the notice period instead (Section 13).
When notice isn't required at all
Section 13(2) allows either party to terminate without notice in response to a wilful breach of a fundamental contract term by the other party. Separately, termination for misconduct after due inquiry doesn't require notice or indemnity — but "due inquiry" is a real procedural requirement, not a formality; skipping it is one of the more common reasons employers lose termination disputes even when the underlying misconduct was real.
What has to be settled on the way out
On termination, final settlement isn't just the last month's wages. It includes any accrued but untaken annual leave, paid out at the ordinary rate under Section 60E(3) — see the full Annual Leave Entitlement guide for how that calculation works — plus any outstanding overtime, rest-day, or public holiday pay already earned but not yet paid out.
Termination, lay-off, and retirement benefits
Separate from notice pay, the Employment (Termination and Lay-Off Benefits) Regulations 1980 require termination or lay-off benefits for employees with at least 12 months of service, scaled by tenure — this applies on top of, not instead of, notice pay or indemnity, and is frequently the piece smaller employers overlook entirely when calculating a final settlement.
Why roster records matter here specifically
Every one of these calculations — notice length, leave payout, outstanding overtime — depends on having accurate service history and shift records. In real Industrial Court disputes, the employer's ability to substantiate a termination or a final pay calculation has repeatedly come down to whether they could actually produce consistent roster and pay records, not just their account of what happened.
The practical takeaway
Before finalising any termination, check three things against your actual records: whether the correct statutory notice period (or indemnity) applies, whether any untaken annual leave is being paid out rather than dropped, and whether termination/lay-off benefits under the 1980 Regulations apply on top of notice — it's easy to settle only the most visible number and miss the rest.