In Norfolk Island, employment matters are governed by the Commonwealth Employment Act 1988 (Cth) applied through the Norfolk Island Act 1913 (Cth). This act outlines the minimum notice periods required for termination of employment contracts.

Minimum Notice Periods

The minimum notice period required by law depends on the employee's length of service and the type of employment contract:

• Standard Contracts: If there's no specific notice period mentioned in the contract, the Commonwealth Employment Act mandates a minimum notice of at least 7 days in writing for both employers and employees intending to terminate the contract.

• Award or Agreement Coverage: If an enterprise award or registered agreement applies to the employment, it might specify different notice periods. These awards or agreements can supersede the minimums set out in the Act. It's important to check the relevant award or agreement for specific details.

While the Act sets a minimum of 7 days, it's good practice to provide a longer notice period, especially for employees with extended service. This allows for a smoother transition and avoids potential disputes.

Additional Considerations

• Fixed-Term Contracts: The Act doesn't explicitly mention fixed-term contracts. However, general contract law principles would likely apply. If the contract reaches its end date without renewal, termination typically occurs without further notice required.

• Casual Employees: Casual employees are not entitled to minimum notice periods under the Act. However, it's still advisable to provide reasonable notice based on the nature and duration of the casual arrangement.

In Norfolk Island, severance pay, also known as redundancy pay, is a financial entitlement that employees may receive if they are made redundant. Norfolk Island falls under Australia's national workplace relations system, known as the Fair Work system.

Eligibility for Severance Pay

To be eligible for severance pay in Norfolk Island, the following conditions generally must apply:

• Your employment was terminated by your employer because your job was no longer required.
• You have been continuously employed by your employer for at least 12 months.
• There was no other suitable employment available within the company or any associated entities.

Calculating Severance Pay

The Fair Work Ombudsman provides a Notice and Redundancy Calculator to help calculate severance pay amounts. However, the general formula is:

• Base rate of pay: This is your regular rate of pay for your ordinary hours of work.
• Period of continuous service: Only service after July 1st, 2016 is counted unless you had a redundancy pay entitlement before then.

The amount of severance pay typically increases with your length of service. Here's an example table from the Fair Work system:

| Years of Service | Weeks of Pay | |---|---| | At least 1 but less than 2 years | 4 | | At least 2 but less than 3 years | 6 | | At least 3 but less than 4 years | 7 |
| At least 4 but less than 5 years | 8 |
| At least 5 but less than 6 years | 10 |
| At least 6 but less than 7 years | 11 |
| At least 7 but less than 8 years | 13 | | At least 8 but less than 9 years | 14 | | At least 9 years | 16 |

Exceptions to Severance Pay

There may be certain situations where an employee is not entitled to severance pay, including:

• Casual Employment: Casual employees are generally not entitled to severance pay.
• Small Business Employers: Businesses with fewer than 15 employees may be exempt under certain conditions.
• Misconduct: If your employment was terminated due to serious misconduct, you may not be eligible.

The termination of employees in Norfolk Island is governed by the Fair Work (Norfolk Island) Rule 2016 and any additional stipulations in an employment contract or applicable award.

Types of Termination

There are several ways in which employment can be terminated:

• Resignation by the Employee: Employees can end their employment by providing appropriate notice as per their contract or award.
• Termination by the Employer: Employers can terminate employment under the following circumstances:
  • Dismissal with Notice: This can occur for reasons other than redundancy or serious misconduct. The employer must provide the appropriate notice period or pay in lieu of notice.
  • Redundancy: This happens when the employee's position is no longer needed. The employer must follow redundancy procedures.
  • Summary Dismissal: This is immediate termination without notice and is reserved for cases of serious misconduct.

Unfair Dismissal

Employees in Norfolk Island are protected against unfair dismissal under the Fair Work Act. A dismissal could be considered unfair for several reasons, including harshness, unjustness, or unreasonableness, lack of a valid reason for dismissal, or failure to follow procedural fairness. An unfairly dismissed employee may be eligible for reinstatement, compensation, or other remedies.