TABLE OF CONTENTS

• Why this matters
• Step 1: Confirm whether FW1.2 applies and review current practice
• Step 2: Define a clear, standardized cancellation policy
• Step 3: Explain what happens when work is cancelled after the deadline
• Step 4: Document and communicate the policy
• Step 5: Track schedule changes and maintain records
• Step 6: Review and adjust policy over time 

Why this matters

Fair Work 1.2 (FW1.2)  ensures that employees working on variable or flexible schedules– such as shift workers in retail, hospitality, logistics, or events – are treated fairly when their hours change. These types of schedules can offer flexibility for both organizations and workers, but without clear cancellation rules they can also create instability, confusion, and inequity.

A fair cancellation policy:

• Protects employees from last-minute changes that disrupt income and personal plans.

• Provides structure and predictability for employers when adjusting shifts.

• Reduces conflict, turnover, and perceived favoritism.

FW1.2 is a key Year 0 benchmark for Fair Work compliance and helps build a foundation of trust for workers with variable schedules. This article explains how you can meet FW1.2 by creating a fair cancellation policy for employees with variable schedules.

Step 1: Confirm whether FW1.2 applies and review current practice

Start by confirming whether this standard is relevant to your organization. Ask:

• Do we employ people on variable or flexible schedules (e.g. changing shifts, on-call work, zero- or low‑hour contracts)?

• Do their hours, locations, or days of work change from week to week or month to month?

If yes, FW1.2 applies. Your next step is to review how scheduling changes are handled today. When reviewing current practice:

• Identify any existing cancellation or shift-change rules in contracts, handbooks, or informal practice.

• Check whether the employer and employee are given equal notice when cancelling or adjusting shifts.

• Look for inconsistent application between teams, sites, or managers.

Unequal or unclear notice periods can create a power imbalance, leave employees with too little time to adjust, and increase dissatisfaction and turnover.

Step 2: Define a clear, standardized cancellation policy

Next, design or refine a single, clear cancellation policy that applies to all roles using variable schedules (unless specific roles require more protective terms). Your policy should:

• Apply consistently across comparable roles and locations.

• Be easy to understand and explain.

• Make expectations the same for everyone, with any differences clearly justified

Set a cancellation deadline

Choose a specific deadline before the start of a shift or assignment by which:

• The company can cancel or change work, and

• The employee can cancel or request a change,

on equal terms, unless you choose to offer employees longer notice or more flexibility than the company. The notice period you choose should balance: 

• Operational needs and realistic planning cycles, 

• Fairness to employees, who need stability and predictable income, 

• Any sector-specific or legal requirements on short-notice cancellations and guaranteed pay. 

Examples (for illustration purposes only)

• “Shifts can be cancelled or changed up to 24 hours in advance by either the company or the employee.”

• “For weekend shifts, cancellation requires 48 hours’ notice.”

Clarify what “cancelling work” includes

Your policy should state what “cancelling work” means, whether it is:

• Cancelling an entire shift or assignment.

• Significantly reducing scheduled hours (for example, halving a shift).

• Changing the location of work when this has material consequences for the employee (e.g. travel time, transport costs).

This avoids disputes about what counts as a cancellation versus an adjustment.

Step 3: Explain what happens when work is cancelled after the deadline

Employees need to know what happens if work is cancelled after the agreed deadline. Your policy should:

• Commit to paying employees in full when the company cancels work after the notice deadline for reasons within its control.

• Clearly state whether, and how much, the company pays when work is cancelled for reasons outside its control (for example, extreme weather, force majeure, or sudden client cancellations), in line with applicable law.

Step 4: Document and communicate the policy 

A fair policy only works if people know it and can rely on it. Document the cancellation policy in at least one of the following:

• Employee handbook or Fair Work policy document.

• Employment contracts or contract addenda for variable‑schedule roles.

• Scheduling or shift‑management guidelines for managers.

Then ensure it is clearly communicated to everyone it affects: 

• Introduce the policy during onboarding for all new hires on variable schedules.

• Share it with current employees through meetings, email, or your HR system.

• Make it easy to access (e.g. on the intranet, in staff rooms, or in scheduling apps).

Managers and schedulers should receive specific training so they: 

• Understand the cancellation rules and deadlines.

• Know what pay is due when the company cancels late.

• Apply the policy consistently across all team members.

Step 5: Track schedule changes and maintain records

To support transparency and accountability, your organization should keep a clear record of schedule changes and notifications. Good practice can include:

• Using a central scheduling tool, platform, or shared tracker.

• Recording the original shift, date/time of change, who initiated the change, and how the employee was informed.

• Keeping copies of notifications (e.g. in‑app messages, emails, text confirmations) where possible.

Step 6: Review and adjust policy over time 

FW1.2 is an ongoing standard. Schedules, business models, and regulations may change, so cancellation policies should not be static. Periodically: 

• Review whether the policy is being applied consistently across teams, roles, and sites.

• Check that equal notice is still being provided in practice for both employer and employee.

• Assess how often late cancellations occur and why.

• Update the policy to reflect operational changes or new legal requirements.

When you make updates:

• Re‑communicate the policy to affected employees.

• Provide additional training for managers if the rules or tools change.

Regular reviews help ensure that your approach remains practical, fair and aligned with Fair Work expectations.