SCHADS Award Resignation Notice Period: Employer And Employee Duties

Resignations are a normal part of running a business, but they can still be disruptive - especially in the social and community services sector, where you may be rostering around client needs, compliance requirements and continuity of care.

If you employ staff covered by the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award), it’s important to understand the notice period rules that apply when an employee resigns, when those rules apply, and what you should do as an employer from the moment you receive notice through to final pay.

In this guide, we’ll walk you through how resignation notice works under the SCHADS Award in Australia, how it interacts with employment contracts and other workplace instruments, and the practical steps you can take to manage resignations confidently (and lawfully).

What Is The SCHADS Award And When Does It Apply?

The SCHADS Award is a modern award that commonly covers employees working in areas like:

• social and community services
• home care services
• disability services
• family day care
• crisis assistance and supported housing (in many cases)

A modern award sets minimum employment conditions for a particular industry or occupation. That typically includes things like minimum pay rates, penalty rates, classifications, rostering rules, and (relevantly here) notice requirements for ending employment.

One common mistake we see in small businesses is assuming “the Fair Work Act covers resignation notice, so it must be the same for everyone”. In practice, resignation notice is often driven by the employee’s award, enterprise agreement, and/or their contract.

If you’re not sure what instrument applies to your employee, it’s worth checking early - because the SCHADS resignation notice period can affect staffing, handovers, payroll timing and potential deductions.

As part of good governance, many businesses also document notice requirements clearly in an Employment Contract, while still ensuring it doesn’t undercut the Award.

What Is The SCHADS Award Resignation Notice Period?

When someone resigns, the key legal question for you is usually:

How much notice is the employee required to give under the SCHADS Award (or other applicable instrument)?

Under the SCHADS Award, the minimum notice an employee must give is set out in the Award’s termination provisions (and it generally depends on their length of continuous service).

While the Award sets the minimum notice, it’s still best practice to ask for resignations to be confirmed in writing (and many contracts and policies require written notice), because it reduces disputes about when notice was given and what the intended last day is.

Notice Periods (Based On Length Of Service)

Under the SCHADS Award, the minimum notice an employee must give (based on continuous service) is commonly set out along these lines:

• Up to 1 year of service: 1 week’s notice
• More than 1 year up to 3 years: 2 weeks’ notice
• More than 3 years up to 5 years: 3 weeks’ notice
• More than 5 years: 4 weeks’ notice

For a small business employer, the practical takeaway is: the longer someone has been with you, the more time you’re generally entitled to plan the transition.

Because award terms can be updated and there may be role-specific nuances, you should still cross-check the current SCHADS Award clause and the employee’s contract (particularly if you’re dealing with unusual working arrangements or a disputed last day).

Does The National Employment Standards (NES) Set Resignation Notice?

The NES (National Employment Standards) clearly sets out minimum notice periods for employers ending employment (termination). For employees resigning, the notice requirement is typically found in:

• the applicable modern award (such as the SCHADS Award), and/or
• an enterprise agreement, and/or
• the employee’s contract (as long as it doesn’t provide less than the Award minimums where the Award applies).

This is why getting the SCHADS resignation notice period right matters - you can’t assume the same rule applies across the board.

Can You Require More Notice Than The Award?

Sometimes, yes - but it depends on how it’s done and whether it is enforceable in the circumstances.

It’s common for employers to include longer notice periods in contracts for senior roles or roles that take longer to transition. However, you should be careful here, because notice clauses can become a dispute point if they’re not clearly drafted, aren’t reasonable in context, or aren’t consistently applied.

If notice periods are business-critical (for example, you run a disability support service with strict continuity expectations), it’s worth having your contracts reviewed to ensure your notice clause is fit-for-purpose and doesn’t create unintended risk.

How Do You Work Out The Right Notice Period In Practice?

When you receive a resignation, you’ll usually want to confirm three things straight away:

• What instrument applies? (SCHADS Award, enterprise agreement, contract)
• What is the employee’s length of service? (continuous service is key)
• What is their last day of employment? (based on notice and any agreed variations)

If you’re using the SCHADS notice rules, calculating the notice period often comes down to the employee’s start date and the date they give notice.

For example, if an employee gives notice on a Monday and their notice period is two weeks, their last day is typically two weeks after that point (subject to how you count notice under your payroll/rostering practices and any agreement to change it).

If you want a structured approach for different scenarios (including where notice is disputed), it can help to use a consistent internal process and double-check calculations against your employment documentation. Many employers also refer to a guide on calculating employee notice periods to reduce admin errors.

What If The Employee Is Casual?

Casual employment can be tricky, because the notice rules for casuals are often different to full-time and part-time employees (and may be set out specifically in the Award, an enterprise agreement, and/or the casual employment contract).

From a risk-management perspective, it’s still a good idea to:

• ask for resignation notice in writing (even if short)
• confirm the last shift (or last engagement date) in writing
• make sure you have clear contract wording for casual engagements.

What If The Employee Is Still In Probation?

Probation doesn’t automatically remove notice requirements. The notice period can still be set by the Award and/or the contract (and a contract shouldn’t undercut any minimum notice requirement that applies).

Probation is also where misunderstandings happen most often (“I’m on probation so I can leave immediately”). If you’re dealing with probationary exits regularly, it’s worth ensuring your probation terms are aligned with the Award and your operating needs.

For context, businesses often also look at how exits work during probation generally (including termination), such as in a guide on termination during probation.

Can You Shorten The Notice Period Or Pay It Out?

In the real world, resignations don’t always run according to the “perfect” notice timeline. You might have:

• an employee who wants to leave early for a new role
• a situation where it’s not appropriate for the employee to remain in the workplace during their notice period
• client-facing or safety concerns that make an earlier end preferable

The good news is that notice periods can often be managed flexibly - as long as you do it lawfully and document it clearly.

Option 1: Agree On An Earlier Finish Date

You can agree with the employee to bring forward the last day. If you do, it’s best to confirm in writing:

• the resignation date received
• the original notice period requirement
• the agreed final day
• what will happen with final pay, leave payout and any outstanding entitlements

Option 2: Payment In Lieu Of Notice

Sometimes, rather than having the employee work out their notice, the employment ends sooner and the notice is paid out (fully or partly). This is often called “payment in lieu of notice”.

Payment in lieu is most commonly discussed in employer-initiated terminations, but it can also come up in resignation scenarios where the parties agree to end earlier (for example, you decide it’s best the employee doesn’t continue working client shifts). Whether it applies, and how it should be handled, will depend on the Award, the contract terms and what is agreed/documented.

If this is on the table, you’ll want to ensure you calculate it correctly and meet your payroll obligations. A helpful reference point is how payment in lieu of notice generally works in Australia.

Option 3: “Garden Leave” Or Not Working Out The Notice Period

Some businesses may want an employee to remain employed for the notice period but not attend work (often still paying them). This is sometimes referred to as “garden leave”.

Whether you can direct this (rather than simply agreeing it) depends on the circumstances and your employment documents. In practice, it often turns on:

• the nature of the role (and access to sensitive information)
• the reason for resignation
• what your contract says (for example, whether it includes a garden leave/stand-down style clause)
• what the Award allows

If you’re considering this option, it’s worth getting advice first, because a poorly handled notice period can trigger disputes about pay, entitlements, or whether the employment ended earlier than you intended.

What If An Employee Doesn’t Give The Required Notice Under The SCHADS Award?

This is where resignations can become stressful for small business employers - especially if you’re already managing tight staffing levels.

If an employee covered by the SCHADS Award resigns without giving the required notice (or stops attending before completing their notice period), you may be wondering:

• Can we deduct money from their final pay?
• Can we withhold their final pay until they return property?
• What if we suffer losses or can’t staff shifts?

Final Pay Still Needs To Be Paid

Even if the employee hasn’t complied with the notice requirements, you generally still need to pay what they’re owed for hours worked and accrued entitlements (like annual leave) in line with the applicable rules.

Where employers get into trouble is by making deductions or “holding” pay without a lawful basis.

If you’re trying to work out what to include and when, a guide on calculating final pay can be a useful starting point.

Deductions Can Be Risky If They’re Not Properly Authorised

In Australia, wage deductions are heavily regulated. Even if your business feels the employee has done the wrong thing, you generally can’t simply deduct money from their pay unless there is a lawful basis.

Depending on the circumstances, deductions may only be permissible where they’re authorised under workplace law and properly documented (for example, with written authorisation from the employee, or where an award term allows it and the conditions are met).

Because the rules are technical, it’s important to check the applicable legal requirements before deducting anything. Many employers start by understanding section 324 of the Fair Work Act, which deals with deductions.

What About Abandonment Of Employment?

If an employee stops attending work and doesn’t respond, you might be dealing with abandonment of employment rather than a clear resignation.

From an employer perspective, the key is to avoid assumptions. It’s usually safer to:

• attempt contact (and keep records)
• send a written request to confirm their intentions
• give a reasonable timeframe to respond
• confirm the outcome in writing (once clarified)

This reduces the risk of a dispute later about whether they resigned, or whether the employment was ended by the employer.

A Practical Resignation Process For SCHADS Award Employers

Having a consistent resignation process makes it far easier to manage SCHADS Award compliance and keep your service delivery stable.

Here’s a practical approach many small businesses use.

1) Acknowledge The Resignation In Writing

Once you receive a resignation (preferably in writing), respond in writing confirming:

• the date you received it
• the notice period that applies (based on the SCHADS Award/contract)
• the employee’s last working day
• handover expectations (if any)

This single step prevents a lot of “but I said…” misunderstandings later.

2) Check The Award, Contract And Any Policies

Even if you’re confident the employee is under SCHADS, it’s still worth checking:

• their employment type (full-time, part-time, casual)
• their classification level
• any role-specific conditions in their contract
• any workplace policies that deal with exits, return of property, and client handover

This is also why having properly prepared employment documentation matters from day one - it gives you a clear reference point when resignations happen.

3) Plan The Handover (Especially For Client-Facing Work)

In SCHADS-heavy workplaces, resignation planning isn’t just operational - it can be a client care and compliance issue.

Consider:

• handover notes and case files
• client communication protocols (who tells clients, and when)
• NDIS and funding-related admin responsibilities (where relevant)
• system access and data security (when to revoke access)

4) Confirm Final Pay Items Early

Before the last day, confirm what will be included in final pay, such as:

• hours worked up to the termination date
• any overtime/penalties owed
• annual leave payout (if applicable)
• any lawful deductions (if applicable and properly authorised)

5) Keep Your Exit Documentation Neat

If there’s ever a dispute, your written records matter.

At a minimum, keep:

• the resignation letter/email
• your written acceptance/confirmation (with the final day)
• any agreement about leaving early or payment in lieu
• final pay calculations and payslips
• property return confirmations (keys, devices, ID cards)

Over time, a consistent process like this can also help you spot patterns and improve retention and onboarding.

Key Takeaways

• The notice period for resignation under the SCHADS Award is usually tied to the employee’s length of continuous service, and you should confirm the applicable Award clause and the employee’s contract before setting (and communicating) the final day.
• Resignation notice requirements often come from the modern award, an enterprise agreement, and/or the employment contract - not always from the National Employment Standards alone.
• If you agree to end employment earlier than the notice period, document it clearly and consider whether payment in lieu of notice is required or appropriate in your circumstances.
• If an employee leaves without the required notice, be careful with deductions from final pay - wage deductions are regulated and need a lawful basis.
• A consistent resignation process (written confirmation, handover planning, final pay checks and record-keeping) helps you stay compliant and reduces disruption to service delivery.

If you’d like help reviewing your SCHADS Award obligations or putting the right employment documents in place for your team, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.