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Christmas Island

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Christmas Island

Notice period

In Christmas Island, an Australian territory, the national employment framework established by the Fair Work Act 2007 (Cth) dictates the minimum notice periods employers must provide employees during termination.

Minimum Notice Periods

Under the Fair Work Act, employers are required to provide a minimum notice period based on the employee's years of service:

  • One week's notice: For employees with less than one year of service.
  • Two weeks' notice: For employees with between one and three years of service.

It's important to note that these are the minimum required notice periods. Employment contracts or enterprise agreements may stipulate longer notice periods, which supersede the statutory minimums.

Additional Considerations

  • Award Coverage: Some industries on Christmas Island may have awards established under the Fair Work Act. These awards may supersede the base notice periods outlined above and provide industry-specific requirements.
  • Casual Employees: Casual employees generally don't have the right to notice of termination, unless they have been employed on a regular and systematic basis for at least six months and become "permanent casuals".

Severance pay

Severance pay entitlements in Christmas Island are determined by a combination of federal legislation and applicable awards. The key sources include the National Employment Standards (NES) and Christmas Island Enterprise Awards.

The Fair Work Act 2007 (Cth) establishes the NES, which apply as the minimum employment standards in Christmas Island. The NES includes provisions for redundancy pay, but not specifically for severance pay. It does not guarantee redundancy pay, but it requires employers to consult with employees if termination is due to redundancy.

Awards set out minimum employment conditions for specific industries or occupations. Christmas Island follows awards established for mainland Australia, which may or may not include severance pay provisions. To determine the relevant award applicable to your employment, you can contact your employer or Fair Work Ombudsman. Review the award document for clauses related to termination or redundancy. These clauses might mention severance pay entitlements specific to your industry. For instance, the Christmas Island Administration Enterprise Award 2016 includes a clause on termination of employment, but it doesn't explicitly mention severance pay.

Termination process

The termination of employment in Christmas Island is governed by the Fair Work Act 2007 (Cth) and the applicable awards.

Notice of Termination

Providing written notice is the standard procedure for termination, initiated by either the employer or the employee. The Fair Work Act's National Employment Standards (NES) specify that this notice should be given. Award variations or your employment contract might supersede the NES minimums, so always check those documents first.

Fair Reasons for Termination

The Fair Work Act outlines several reasons considered "fair" for termination, including:

  • Redundancy
  • Performance issues
  • Misconduct
  • Capacity reasons

The termination notice should clearly state the reason for termination.

Payment Entitlements During Notice Period

Employees are entitled to receive their regular wages throughout the notice period. This includes entitlements like base salary, leave loading (if applicable), and allowances.

Final Pay

Upon termination, employees must be paid all outstanding entitlements, including:

  • Accrued annual leave pay
  • Accrued personal/carer's leave pay
  • Unpaid overtime
  • Any other outstanding allowances or bonuses


If termination is due to redundancy, the NES requires employers to consult with affected employees beforehand. The specific consultation requirements might be further elaborated upon in the relevant award.

Additional Considerations

Your employment contract might include additional provisions related to termination. It's crucial to review your employment contract and the relevant award to understand your specific rights and obligations during termination.

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