Pay in lieu of notice

When an employer terminates a person's employment, they must give the employee a period of notice unless they are being terminated due to misconduct. Notice periods are often 2 to 4 weeks.

Usually an employee works out their notice period, however an employer can choose to:

• not require the employee to work out any of their notice period or
• only require the employee to work out part of their notice period

In all cases, the employer must pay the employee as if they were continuing to work during the notice period. This known as pay in lieu of notice.