If you run a social, community, home care or disability services organisation, you know how critical workforce continuity is. When a team member resigns, getting the resignation notice period right under the SCHADS Award can make the difference between a smooth handover and last‑minute chaos.
In this guide, we’ll walk through how resignation notice works under the Social, Community, Home Care and Disability Services Industry Award (SCHADS Award), what you can (and can’t) do if an employee doesn’t give enough notice, and the key steps to manage handover, rosters and final pay compliantly. We’ll also share practical contract tips so you can set clear expectations from day one.
What Is The SCHADS Award And Why Do Notice Periods Matter?
The SCHADS Award is the modern award that sets minimum pay and conditions for much of Australia’s community services, home care and disability support workforce. It interacts with the National Employment Standards (NES), which sit in the Fair Work Act and create the safety net for all national system employees.
Resignation notice periods matter because they determine how long an employee must work after telling you they intend to leave. In a SCHADS environment-where client relationships, continuity of care and safety are paramount-those extra weeks are often essential to:
- Transfer client files and care plans safely.
- Re‑roster services and meet minimum engagement rules.
- Hand back equipment and access credentials.
- Wrap up incidents, training and medication competencies.
Getting the notice period right also reduces legal risk. Under the award and the NES, both employers and employees have obligations about notice and final pay, so it pays to be clear and consistent.
How Much Notice Must Employees Give Under SCHADS?
For permanent employees (full‑time and part‑time), the SCHADS Award requires a minimum period of notice when resigning that generally mirrors service‑based notice thresholds. Casual employees usually don’t have to provide notice, but check any contract or policy you’ve set.
Service‑Based Resignation Notice (Permanent Staff)
As a rule of thumb, resignation notice under modern awards scales with an employee’s length of continuous service with you. Typical ranges you’ll see across awards are roughly one to four weeks. In practice, this means shorter service usually equals one week’s notice, with longer service moving up to several weeks.
Importantly, the extra week of notice that applies when an employer terminates a 45+ year‑old employee with at least two years’ service is a Fair Work Act concept that generally does not increase the employee’s resignation notice under modern awards. Your internal policies can always request more notice, but they can’t reduce the minimum set by SCHADS.
If you’re mapping out your processes, it’s helpful to understand the general rules for resignation notice periods in Australia and how to calculate employee notice periods across different scenarios.
Casuals And Fixed Term Employees
- Casuals: Casual employees typically do not have a notice requirement on resignation under the SCHADS Award. However, you can set expectations about notice in rosters or policies-just remember you can’t penalise a casual for not meeting a “policy request” if the award doesn’t require notice.
- Fixed‑term contracts: If the employee resigns before the end date, the award notice rules still help as a baseline, but the contract terms will be key. Ensure your Employment Contract sets out early termination rights and notice clearly.
Can You Ask For Longer Notice Than SCHADS?
Yes-many SCHADS employers ask for longer contractual notice for senior, clinical or scheduling‑critical roles. That’s lawful as long as the contract meets or exceeds (never undercuts) the minimum award notice and isn’t harsh, unfair or impractical.
For example, you might agree on four weeks for a senior coordinator even if their minimum award resignation notice would be less. Make sure the requirement is reasonable for the role and you apply it consistently.
Can You Use Payment In Lieu, Garden Leave Or Deduct Wages?
When a resignation lands on your desk, you’ve got options-especially if you’re balancing client risk, confidentiality, and continuity. Three tools commonly used by employers are payment in lieu, garden leave and deductions. Here’s how they work in a SCHADS context.
Payment In Lieu Of Notice
If an employee resigns and you prefer they cease work sooner than the end of their notice period, you can agree to bring forward the end date and pay them for the balance of the notice instead of requiring them to work it. This is often the cleanest route if there are client safety, confidentiality or conflict risks.
It’s wise to document any change to dates in writing and understand the rules around payment in lieu of notice, including how it interacts with leave accruals, superannuation and taxation.
Garden Leave
Garden leave means the employee remains employed and paid through the notice period but is directed not to attend work (or to limit duties). This can be useful where access to systems, client data or medication management is sensitive.
To use garden leave, include a clear clause in your contracts. You should also understand when garden leave is appropriate and how it differs from suspension, which is covered separately under misconduct processes. See our guide on garden leave for typical clause mechanics and practical considerations.
Deductions If An Employee Fails To Give Notice
Many modern awards, including SCHADS, allow employers to withhold up to one week’s wages from wages owing if an employee over 18 resigns without giving the required notice. Conditions apply:
- The deduction must be authorised by the award (and your contract should reflect this).
- You can’t deduct more than one week’s wages.
- You can’t deduct from accrued entitlements like annual leave.
Apply this carefully and proportionately. If the employee gave some notice but not all, consider a pro‑rata approach or a mutual agreement instead of a strict deduction. When in doubt, get legal advice before making deductions from final pay.
Managing Rosters, Leave And Handover During Notice
In SCHADS workplaces, handover is more than tidying up loose ends-it’s a client safety exercise. A well‑managed resignation period focuses on rostering, training transfer and access controls.
Rostering And Minimum Engagement Rules
Use the notice period to reduce client risk while complying with SCHADS rostering and minimum engagement rules (including broken shifts and travel time where relevant). If you need to alter rosters materially, follow any consultation obligations and give reasonable notice of changes.
Leave During The Notice Period
- Annual leave: Employees can request annual leave during notice, and you can approve or refuse based on business needs. If leave is approved, the notice period usually continues to run. Align your approach with the award and your policies.
- Sick or carer’s leave: Employees can take personal leave during notice with evidence consistent with policy. Be clear about your evidence requirements and review our overview of sick leave during the notice period.
- Time off in lieu (TOIL): Plan in advance how TOIL will be taken or paid out, consistent with any TOIL agreement under the award.
Access, Property And Confidentiality
On day one of notice, plan the handback of devices, badges and medication keys, and adjust system permissions in line with client privacy and data security obligations. Where appropriate, narrow duties to remove access to sensitive client data while maintaining pay and benefits.
Final Pay And Documentation
Final pay should include any unpaid ordinary hours, overtime/penalties due, and accrued and untaken annual leave with leave loading where applicable. While the Fair Work Act doesn’t set a universal deadline, pay final entitlements promptly-ideally on the last day or next scheduled pay run-to reduce disputes. Our guide to calculating final pay covers the typical components and records to prepare.
Don’t forget to issue certificates or statements your departing employee may request (for example, a separation certificate where applicable), and keep your payroll and HRIS records up to date.
What To Put In Your Contracts And Policies
Clear paperwork makes resignation notice straightforward to manage. At a minimum, ensure your contracts and policies cover:
- Notice requirements: Spell out resignation notice for each category of employee and confirm that award/NES minimums apply as a floor. For permanent staff, consider role‑based contractual notice (for example, longer notice for leadership roles).
- Garden leave and duties during notice: Include a clause allowing you to direct duties, work location, and non‑attendance (with pay) during notice to manage client risk and confidentiality.
- Payment in lieu: Reserve the right to pay out part or all of notice at your discretion, so you can end employment earlier while still complying with the law on payment in lieu.
- Deduction authority: Where authorised by the SCHADS Award, include a limited wage deduction clause for failure to give required notice (capped at one week and excluding accrued entitlements).
- Return of property and confidentiality: Set out the process and timing to return devices, uniforms, files and keys, and reinforce confidentiality obligations post‑employment.
- Leave management: Clarify how annual leave, TOIL and personal leave requests will be handled during notice.
If your current templates don’t cover these areas, it’s a good time to refresh your Employment Contract suite for full‑time, part‑time and casual staff so your expectations are clear and enforceable.
Policies That Support Smooth Exits
Alongside contracts, a short resignation and handover policy can save time. It can outline how employees submit resignations, the standard handover checklist, client notification protocols (where appropriate), and when you may use garden leave. Clear policy language also helps line managers act consistently when a resignation arrives.
Edge Cases: Working Or Not Working The Notice
Sometimes an employee resigns and then stops attending work, or asks not to work the notice period. Consider whether you’ll accept a shorter notice by mutual agreement, place them on garden leave, or end employment early with pay. If the employee refuses to work and you choose not to accept shorter notice, review your options under the award and contract before taking action. These situations can get complex quickly, so it’s helpful to have a plan informed by your policies and, where necessary, legal advice.
Other Moving Parts To Anticipate
- Non‑attendance or misuse of leave: If sick leave is claimed without adequate evidence, manage it under your policy and the award rules. Keep your approach reasonable and consistent.
- Client communications: Coordinate messages to clients and families sensitively. Focus on continuity, not the reasons for departure.
- Handovers: Prioritise medication administration competencies, behaviour support plans, risk assessments and incident follow‑ups.
If notice is short and handover is tight, you may choose to pay out the balance and secure handover from supervisors or clinical leads instead.
Frequently Asked Employer Questions
Can We Require A Longer Resignation Notice Than The Award?
Yes, by contract, provided it’s reasonable for the role and does not undercut award/NES minimums. A fair approach is to scale contractual notice with seniority or client dependency and ensure both sides have matching obligations where appropriate.
Do We Pay Superannuation On Notice Payouts?
It depends on the nature of the payment and whether it’s ordinary time earnings. That assessment can be technical. Many employers opt to pay super on worked notice and review super on any payout against ATO guidance and the fund’s rules. If you’re unsure, get advice before processing payroll.
What If We Want Them To Leave Now?
Use garden leave (with pay) or pay out the balance of notice, provided your contract allows it. Both options can protect clients and data while meeting your obligations. A short written variation setting the end date and payout keeps the records clear.
What If The Employee Won’t Work Their Notice?
You can accept shorter notice by agreement, consider a limited deduction if the award allows, or treat it as abandonment/non‑attendance and end employment-each option carries risks. Before acting, check your contract, the award and your options around paying out notice to close things cleanly.
What Else Should We Watch During Notice?
Misuse of leave, confidentiality and client safety. Keep decisions consistent with policy, and manage access and handover proactively. If issues arise, you can adjust duties or place the employee on garden leave while maintaining pay. If disciplinary concerns surface (separate from the resignation), follow your usual processes.
Key Takeaways
- Under the SCHADS Award, permanent employees must give a service‑based resignation notice (casuals generally don’t). Contract terms can set longer notice, but never less than the award/NES minimums.
- You can use garden leave or payment in lieu of notice to manage client risk, data access and continuity, as long as your contracts and payroll processes support it.
- If an employee fails to give required notice, the award may allow a limited deduction (up to one week’s wages). Apply carefully and document decisions.
- Manage rosters, leave requests and access controls proactively during notice, and process final pay promptly to reduce disputes.
- Strong paperwork helps: clear notice clauses, garden leave, deduction authority, and a practical handover policy keep resignations smooth and compliant.
- For edge cases like not working notice or complex leave during notice, check your obligations on resignation notice periods and manage day‑by‑day with sound records.
If you’d like a consultation on managing resignation notice under the SCHADS Award, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
