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ARTICLE · 11 SEPTEMBER 2014

Can termination upon reasonable notice still be implied into an employment contract?

While the issue is unclear, employers should ensure they have up to date contracts with appropriate notice provisions.

AustraliaEmployment and HR

IN BRIEF

The traditionally accepted notion that an employment contract with no express notice provision may require an employer to provide or pay "reasonable notice" has increasingly come under the spotlight.

Generally speaking (absent summary termination for misconduct), when the need to terminate employment arises, notice of termination is required to be given. The parties will generally first look to the employment contract in order to determine the required contractual notice period.

Where there is no written employment contract, or the written contract is silent as to notice of termination, courts have held that it is necessary to imply a term of reasonable notice, being a notice period ranging from weeks to a period of 12 months and sometimes beyond. Various factors have influenced the length of notice period including the length of service, seniority of position, age of employee, opportunity of alternative work and other relevant facts.

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