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Employee Termination Letter Template for Australia

This document serves as a standardized template for employment termination letters compliant with Australian employment law, particularly the Fair Work Act 2009 and related legislation. It provides a comprehensive framework for communicating employment termination decisions while ensuring all legal requirements are met, including proper notice periods, final entitlement calculations, and post-employment obligations. The template is designed to be customizable for various termination scenarios while maintaining compliance with Australian federal and state employment regulations, workplace awards, and enterprise agreements.

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What is a Employee Termination Letter?

The Employee Termination Letter Template is a crucial document designed for use in Australian workplace contexts when formally ending employment relationships. It addresses the requirements set forth by the Fair Work Act 2009, relevant state legislation, and applicable Modern Awards. This template should be used when initiating any form of employment termination, whether it's due to redundancy, performance issues, or other valid reasons. The document includes essential components such as termination date, notice period, final entitlements, and post-employment obligations. It's structured to protect both employer and employee interests while ensuring compliance with Australian employment law requirements, including proper notice periods, calculation of entitlements, and handling of confidential information. The template is designed to be customizable while maintaining legal compliance and professional standards.

What sections should be included in a Employee Termination Letter?

1. Letter Header: Company letterhead, date, and employee's contact details

2. Subject Line: Clear indication that this is a termination of employment notice

3. Opening Statement: Direct statement confirming the termination of employment and reference to any prior discussions

4. Termination Details: Specific details including effective date of termination and notice period

5. Final Pay Information: Overview of final payment including salary, unused leave entitlements, and other benefits

6. Company Property: Instructions regarding return of company property and timeline

7. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-employment

8. Reference and Future Employment: Information about providing references and responding to employment verification requests

9. Closing Statement: Professional closing including contact details for questions and next steps

What sections are optional to include in a Employee Termination Letter?

1. Redundancy Payment Details: Include when termination is due to redundancy, outlining redundancy pay calculations and entitlements

2. Performance-Related Information: Include when termination is performance-based, referencing previous warnings or performance improvement plans

3. Garden Leave Provisions: Include when employee is placed on garden leave during notice period

4. Post-Employment Restrictions: Include when there are specific non-compete or non-solicitation obligations

5. Outplacement Support: Include when company is providing career transition services

6. Settlement Offer: Include when offering additional payments beyond statutory entitlements

7. Immediate Termination Details: Include for termination with immediate effect, including serious misconduct cases

What schedules should be included in a Employee Termination Letter?

1. Final Payment Calculation: Detailed breakdown of final payment including salary, leave entitlements, and any other payments or deductions

2. Company Property Checklist: List of company property to be returned including IT equipment, security passes, and other items

3. Employee Entitlements Summary: Summary of remaining benefits, including health insurance coverage period and superannuation details

4. Handover Document Template: Template for documenting current projects, responsibilities, and key contacts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Employment Form

Cost

Free to use

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