Resigning from a permanent job: notice, final pay and deductions

Published by SESAY · 2026-10-07 · General Australian payroll guidance

What to understand first

Resignation notice can be set by an award, agreement or contract. A deduction for insufficient notice is not an automatic right to keep all final pay. Fair Work explains that permitted award deductions have conditions and cannot simply be taken from leave entitlements.

Practical checks

• Check your applicable notice requirement before selecting a final date.
• Record the resignation date and agreed last employment date.
• Clarify any agreement to finish notice early.
• Ask for the legal basis and calculation of a proposed deduction.

Fictional example

Fictional employee Liam gives notice but asks to finish a week early to start another role. His manager agrees verbally. Payroll receives only the original notice dates and assumes an unexplained absence. Written confirmation of the agreed arrangement resolves the uncertainty before final pay is calculated.

Your next step

Employees should retain the agreed dates and any changes. Employers should not use a standard deduction just because an employee leaves earlier than first expected. Distinguish a mutual arrangement from an employer ending employment early, and get advice if the facts are disputed. Final pay is not an appropriate tool to pressure an employee into a handover.

How SESAY can help

SESAY can help connect HR-approved exit instructions with payroll calculations and maintain a clear record of any authorised adjustments.

Official sources

• Fair Work — Resignation

Sources researched 2026-10-07. Examples are fictional and use stated assumptions. Confirm current rules and your circumstances before acting. This is general information, not individual tax or legal advice. SESAY is independent of the regulators linked here.