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ARTICLE · 31 MARCH 2015

Case shorts on employment law

The summaries relate to: Reasonable notice of termination, Breach of employment contract and Annual leave on termination.

AustraliaEmployment and HR

1. Reasonable notice of termination

The decision by the High Court of Australia to refuse special leave to appeal(1) to an employee from a decision of the Full Court of the Federal Court of Australia(2) significantly reduces the likelihood of employees seeking to argue that they are entitled to "reasonable" notice of termination which exceeds statutory and Award minimums.

Traditionally, where an employment contract does not include an express provision in relation to notice of termination, or alternatively, an employment contract which includes a notice provision is an outdated contract which does not relate to the employee's current position, the Courts have implied a term into the employment contract such that the employer is required to provide the employee with "reasonable" notice of termination. In practice, senior employees with long periods of service have been able to claim between 12 and 18 months as a reasonable period of notice of termination.

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