At common law, a contract of employment for no set term contains an implied term that the employer give reasonable notice of termination except in circumstances justifying summary dismissal.

A contract of employment may be terminated by the employer with notice or by summary dismissal. The employer must communicate to the employee by plain or unambiguous words or conduct that the contract is terminated. Where notice is given, the contract terminates at the end of the period of notice specified. When termination occurs via payment in lieu of notice, it takes effect when communicated subject to the requirement that the amount in lieu has actually been paid.

In relation to a dismissal with notice, the dismissal takes effect upon the date of the expiration of the specified period of notice. It is necessary for that date to be clearly identifiable.

Unless there is an express contractual term providing for payment of wages in lieu of notice, an employee's remedy for failure to give notice is damages for breach of contract, not a debt for wages.

Damages for breach of contract by failure to give notice of termination must account for the loss of opportunity to earn remuneration during the notice period, reduced by amounts actually paid, income earned from other employment during that period, and amounts brought to account for adverse contingencies.

For termination of full-time or part-time employees, employers must give written notice: not less than 1 week for less than 1 year's service; at least 2 weeks for more than 1 but less than 3 years; at least 3 weeks for more than 3 but less than 5 years; at least 4 weeks for more than 5 years' continuous service.

An employee aged 45 years or over at the time notice is given, who has completed two years' continuous service, is entitled to one additional week's notice beyond the standard notice periods.

The contractual term permitting dismissal for 'serious, wilful or persistent misconduct' contains three disjunctive (not conjunctive) alternatives, so any one suffices to justify summary dismissal without notice.

Termination of employment takes effect when it is communicated to the employee; an Employment Separation Certificate signed by the employer on one date does not take effect until it is received by the employee, even if the certificate nominally refers to an earlier date of termination.

A notice of termination, once sent, cannot be unilaterally withdrawn or varied in a way which changes its effect.

An oral resignation may be effective even where an enterprise agreement specifies termination of employment must be by written notice, provided the agreement does not expressly limit resignation to written form only ('may only').

At common law an employer can dismiss an employee for any reason or for none. The employer can act unreasonably or capriciously but the termination is valid unless in breach of a term of contract, in which case the employee's only remedy is damages for breach of contract.