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Who must provide minimum notice of termination (NES s 117)?

The applicability test for Provide minimum notice of termination (NES s 117) (FWO), computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Some businesses

Applies when the business has employees.

What the obligation is

NES minimum notice of termination scales from 1 week to 5 weeks based on service + age 45+.

Section 117 Fair Work Act + NES sets minimum notice of termination: 1 week (<1yr), 2 weeks (1-3yr), 3 weeks (3-5yr), 4 weeks (5+yr); +1 week additional if 45+ years old + 2+ years service. Awards or contracts may extend.

The applicability test

Applies when the business has employees.

How the regulator frames it: National-system employers.

What triggers it: Termination of employee.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).

The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.

Business structure and size

Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".

Size bandAnswer across all industries, any structure
No employees (turnover $100K–$1M)No
1–5 employees (turnover $100K–$1M)Yes
6–19 employees (turnover $1M–$3M)Yes
20–99 employees (turnover $3M–$10M)Yes
100–499 employees (turnover $10M–$100M)Yes
500+ employees (turnover $100M–$1B)Yes

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

  • Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. You have employees (6–19)
  • Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires employees.

What you must do, and when

When due
Notice prior to termination, or payment in lieu.
Frequency
When a triggering event occurs
Evidence to keep
Termination letter; payment records.
Status
Current
Priority
High

Penalty for not complying

Maximum penalty: Civil penalty for underpayment; underpayment recovery.

Audit or assurance level

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

Obligations with the same applicability test

Where it sits in the corpus

Rules Mate tracks 19 published obligations tagged "workplace", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 13 of those apply outright. This obligation is rated high priority, and is triggered by events.

Regulator, legislation and tools

Regulated by Fair Work Ombudsman.

FWO: Enforces compliance with the Fair Work Act, awards, and agreements. Investigates underpayments, brings civil penalty proceedings, and publishes compliance notices.

FW Act: Federal workplace relations Act.

Free tools that help with this obligation:

Questions

Who must provide minimum notice of termination (NES s 117)?
Applies when the business has employees.
Do sole traders need to provide minimum notice of termination (NES s 117)?
Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
Do businesses with 1–5 employees need to provide minimum notice of termination (NES s 117)?
Yes (1–5 employees, turnover $100K–$1M).
When is "Provide minimum notice of termination (NES s 117)" due?
Notice prior to termination, or payment in lieu.

Related

Sources

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.