Employment - Termination Letter

What is the purpose of this document?

The purpose of this termination letter is to provide an employee with notice that his or her employment will terminate because of a performance or conduct issue. It should only be used for straightforward dismissals. If special circumstances apply, you should obtain legal advice before proceeding with the dismissal.

This template should not be used if you are making an employee redundant as redundancy is a complex matter about which you should obtain specific legal advice.

Using this template letter will not prevent an employee making a claim for unfair dismissal. If you think there is a risk that your employee may bring such a claim, we recommend you seek legal advice.

You should only use this document as follows:

Performance	You have worked through a performance management process with the employee.
Misconduct	You have investigated the misconduct, have put the allegations of misconduct to the employee and considered the employee’s response to the allegations.
Serious misconduct	You have investigated the serious misconduct, have put the allegations of serious misconduct to the employee and considered the employee’s response to the allegations.

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Employer Details
• Who should sign the termination letter?
Termination Date
• What is the termination date?
• Can I backdate the termination date?
• What is the notice period?
Reason for Termination
• Can I provide more than 1 reason for termination of employment?
• What is the difference between performance and misconduct?
• What is the difference between misconduct and serious misconduct?
Notice
• Does the employee have to work the notice period?

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Employer Details

• Who should sign the termination letter?

  The termination letter should be signed by the individual who has authority to make decisions about hiring and dismissing employees, such as the human resources manager.

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Termination Date

• What is the termination date?

  The termination date is the last date of the employee’s employment. This will be either the last day of the notice period, or the day on which the employer makes a payment in lieu of requiring the employee to work the notice period.
  
  In the case of summary dismissal for serious misconduct, the termination date will be the date that notice of termination is given to the employee.

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• Can I backdate the termination date?

  No. A termination date cannot be earlier than the date that notice of termination is given.

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• What is the notice period?

  You are required to give your employee the statutory notice period, or the notice period in the employee’s contract of employment if that is more generous.
  
  The statutory notice periods are as follows:
  
  

  Period of continuous employment	Notice period (employee under 45 years of age at the date of notice)	Notice period (employee over 45 years of age at the date of notice)
  Not more than 1 year	1 week	1 week
  More than 1 year but not more than 2 years	2 weeks	2 weeks
  More than 2 years but not more than 3 years	2 weeks	3 weeks
  More than 3 years but less than 5 years	3 weeks	4 weeks
  More than 5 years	4 weeks	5 weeks

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Reason for Termination

• Can I provide more than 1 reason for termination of employment?

  If you want to provide more than 1 reason, please speak to Law Central Legal on 08 9476 4999.

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• What is the difference between performance and misconduct?

  Performance issues relate to how the employee performs the job and may be addressed through performance management.
  
  Misconduct relates to behavioural issues and may be addressed through issuing warnings about misconduct.
  

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• What is the difference between misconduct and serious misconduct?

  Serious misconduct includes theft, assault and intoxication. It can also include deliberate or wilful conduct that threatens the profitability or viability of the employer (such as diverting work away from the employer to a company owned by the employee). Where an employee has engaged in serious misconduct, the employer has the right to terminate the employee’s employment summarily (ie immediately and without notice).
  
  Misconduct is any other conduct incompatible with the continuation of the employer/employee relationship.
  
  If you are unsure about whether your employee’s conduct is serious misconduct or misconduct, please contact Law Central Legal on 08 9476 4999 for advice.

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Notice

• Does the employee have to work the notice period?

  Where an employee’s employment is terminated for serious misconduct, then the employee is not entitled to any notice. Otherwise, this is in the employer’s discretion.
  
  You can elect to pay the employee in lieu of working the notice period, or can elect for the employee to work the notice period. If you want the employee to only work part of the notice period, speak to Law Central Legal on 08 9476 4999 for advice.

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This document has been prepared by the law practice Law Central Legal