Did you know that not having a formal, written employment contract, can lead to some serious financial implications and surprises? It’s important to protect your business, as employers.
What is Reasonable Notice?
In the absence of a formal written employment contract, especially for long-serving, senior employees and well-paid employees, there’s a possibility your staff may claim ‘reasonable notice’ upon termination.
Reasonable notice can range from 6 to 12 months termination pay, and in some cases, up to 24 months pay.
This notice period is subjectively determined based on factors such as:
- Job position
- Employee’s age
- Duration of employment
- Job market mobility
Usually the standard notice terms would apply under the Fair Work Act 2009 (Cth) however in some circumstances, and especially if there are no certain written contractual terms, reasonable notice may be payable.
There is always the opportunity for employers to undertake a full review of all Employment Contracts within their business, especially for employees who have:
- Been at the organisation for a long time
- Senior or executive roles
- Higher salaries
- Old employment contracts in place and have either not been looked at for awhile, or are not updated accordingly.
If you’re ready to ensure your employment contracts are drafted and reviewed to the highest standard, to protect your business, reach out to No Borders Employment Law today and connect with Director Jonathan Mamaril and the team for expert advice and solutions.
Secure your free consultation here.