If you resign without giving notice, you need to pay salary in lieu of notice. Termination without notice can happen in situations such as breaking the terms of the contract, failure to pay salary and absence without cause.
Either you or your employer may terminate a contract without waiting for the notice period to end.
You can do so by paying the other party salary in lieu of notice. This is money equivalent to the salary that you would have earned during the required notice period.
Termination due to breach of employment terms
Either you or your employer may terminate employment without notice when the terms of employment have been breached.
The party that breached the terms of employment must pay salary in lieu of notice.
What is considered a breach
You can leave without notice if your employer fails to pay your salary within 7 days of it being due. However, you should check with your employer why payment has not been made before deciding whether to leave.
You are considered in breach of contract, and your employer can terminate employment without notice, if you are:
- Absent from work continuously for more than 2 working days without approval and a good excuse.
- Absent from work continuously for more than 2 working days without informing and attempting to inform your employer of the reason.
| Monday |
Tuesday |
Wednesday |
Thursday |
| Absent without reason |
Absent without reason |
Public Holiday |
Terminate without notice |
- Your employer can terminate your employment without notice on Thursday as you were absent from work continuously for more than 2 working days without approval or notice.
| Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
| On approved unpaid leave |
Absent without reason |
Public Holiday |
Absent without reason |
Terminate without notice |
- Your employer can terminate your employment without notice on Friday as you were absent from work continuously for more than 2 working days without approval or notice.
Changes to terms and conditions of work
Your employer cannot change the terms and conditions of employment without your consent. If you do not agree to the changes, you should negotiate with your employer for an agreement acceptable to both.
If there is no agreement, either party may choose to end the contract by serving the required notice or paying salary in lieu of notice.
Compensation from employees for ending a contract
Your contract may require you to pay a monetary compensation in addition to notice pay for terminating the contract before a specified period.
Such terms are not covered by the Employment Act and are based on the employment contract. Consider seeking legal advice to understand your obligations and settle the disputes through civil court proceedings.