Do I have to pay an employee who quits without notice?

Walking out doesn't cancel what the employee has already earned. Their final pay must include:

• wages for all hours worked, including penalty rates and allowances
• unused annual leave, plus annual leave loading if they would have received it when taking leave
• accrued or pro rata long service leave, if they qualify under the long service leave rules that apply to them

Unused sick and carer's leave is not paid out. Some awards also have rules about paying out untaken rostered days off, time off instead of overtime, or annual leave taken in advance, so check yours.

It depends on where the notice obligation comes from.

• Award covered employees. Most modern awards let you deduct up to one week's wages if the employee is 18 or over, didn't give the notice the award requires, and the deduction isn't unreasonable. You can only deduct from wages owed under the award, not from annual leave or other entitlements.
• Enterprise agreements. Some agreements have a similar term. Check the exact wording.
• Award and agreement free employees. They only have to give the notice their contract requires (or reasonable notice if the contract is silent). A contract clause on its own generally isn't enough to justify a deduction, because the Fair Work Act only allows deductions in limited situations. Get advice before withholding anything.

Casual employees don't have to give notice when they resign, so there is nothing to deduct. You also can't deduct if you agreed to a shorter notice period.

Check the employee's award or enterprise agreement first. Most awards require final pay within 7 days after the last day of employment.

If no award or agreement sets a deadline, the Fair Work Act's general rule applies: employees must be paid at least monthly. Fair Work's best practice advice is to pay as soon as possible, such as in the next pay cycle.

Any deduction you are allowed to make must be clearly shown on the final payslip.

1. Confirm they have left. An employee who walks out mid-shift or stops answering calls may not have clearly resigned. Contact them in writing to confirm whether they are leaving and their last day, and keep a copy. That record helps if there is a later dispute about whether they resigned or were dismissed.
2. Check the notice rules. Look up the notice the employee had to give under their award, agreement or contract, and whether a deduction is allowed.
3. Work out final pay. Add up wages owed, unused annual leave and loading, and any long service leave.
4. Pay on time. Pay by the deadline in the award or agreement and show any deduction on the payslip.

If Services Australia asks, you may also need to complete an Employment Separation Certificate for the employee.