HABA: Rejection of Extended Notice

Hair and Beauty Australia explains the the legal period of notice for resignations.

pha168000081Should an employee resign from your salon, they are required to give the appropriate notice as per the National Employment Standards.

The appropriate notice is:

Employed for not more than 1 year – Period of notice 1 week
Employed for more than 1 year but less than 3 years – Period of notice 2 weeks
Employed for more than 3 years but less than 5 years – Period of notice 3 weeks
Employed for more than 5 years – Period of notice 4 weeks

Employees often give extended notice outside of their requirements and this can be at the detriment of the business if employers are concerned about intellectual property and confidentiality whilst an employer is gone. Therefore if an employee gives a long resignation period it is extremely important that the employer accept or rejects this resignation period as soon as possible.

If you accept the extended notice, you cannot terminate their employment without paying out the entire length of the resignation period. For example, if an employee provides you with 8 weeks notice and you accept this, if after 4 weeks you wish to terminate them, you would need to pay out the remaining 4 weeks.

If you reject the extended notice period, the employer should let the employee know as soon as possible that they will only be required to work out notice as per the National Employment Standards and provide the finishing date. The employer can negotiate a date to reach an agreement which suits both parties. If an employee is terminated, the employer in this circumstance will only be required to pay until the end of the notice. For example if an employee is required to give 3 weeks notice but gives 6 and the employer rejects the 6 weeks notice, if after 1 week the employee is terminated the employer would only be required to pay out a further 2 weeks.

It is extremely important that the acceptance or rejection is documented in a form of a letter to serve as evidence.

For more information regarding your obligations as an employer contact Hair & Beauty Australia (HABA) on 1800 997 795 or visit www.hairandbeautyaustralia.com.au

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