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ARTICLE · 23 DECEMBER 2016

Reasonable notice in employment contracts

Contracts of employment should always include an express and up-to-date clause dealing with notice of termination.

AustraliaEmployment and HR

Recent decisions revisit the relevance of the law of reasonable notice of termination.

In recent years, there have been a number of important judicial decisions which have considered whether the concept of "reasonable notice" of termination continues to have relevance to Australian employment contracts.

The traditional view is that where an employment contract is either silent on notice of termination or includes an inadequate period of notice of termination (for example, an old employment contract which relates to an employee's former position), then the law implies a term requiring the employer to provide a "reasonable" period of notice of termination.

In considering what constitutes a reasonable period, the Courts have considered factors such as the employee's age, experience, tenure, seniority and likelihood of obtaining alternative employment. In Australia, it is generally accepted that older and more senior employees with long periods of service may be

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