The Employment Termination Policy serves as a critical governance document for organizations operating in Australia, providing a structured framework for managing the end of employment relationships. This document is essential for ensuring compliance with Australian employment law, particularly the Fair Work Act 2009 and related legislation, while protecting both employer and employee interests. The policy includes comprehensive guidance on various termination scenarios, procedural requirements, notice periods, and entitlements calculations. It is designed to be used by HR professionals, managers, and other stakeholders involved in the termination process, helping organizations maintain consistent practices, reduce legal risks, and ensure fair treatment of employees during termination processes. Regular reviews and updates of this policy are necessary to reflect changes in legislation and business requirements.
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1. Purpose and Scope: Defines the policy's objectives and who it applies to within the organization
2. Definitions: Clear definitions of key terms used throughout the policy including types of termination, notice periods, and relevant terminology
3. Legal Framework: Overview of relevant legislation and regulatory requirements that govern employment termination
4. Types of Termination: Explanation of different termination categories (resignation, redundancy, dismissal for cause, etc.)
5. Notice Periods: Required notice periods for different types of termination and employment categories
6. Procedural Requirements: Step-by-step procedures for managing termination processes, including documentation requirements
7. Final Pay and Entitlements: Details about calculation and payment of final entitlements, including leave, redundancy pay, and other benefits
8. Return of Company Property: Process for ensuring return of all company assets and revoking access to systems
9. Confidentiality and Ongoing Obligations: Post-employment obligations regarding confidential information and intellectual property
10. Appeals and Grievances: Procedures for handling disputes or appeals related to termination decisions
1. Redundancy Procedures: Detailed procedures for handling redundancies, including selection criteria and consultation requirements. Include when organization may need to handle redundancies.
2. Performance-Based Termination: Specific procedures for performance-related terminations, including performance improvement plans. Include when organization has detailed performance management processes.
3. International Employment: Additional considerations for terminating international employees or those on visas. Include when organization employs international workers.
4. Executive Termination: Special provisions for executive-level terminations. Include when organization has executive employees with special contractual arrangements.
5. Fixed-term Contract Completion: Procedures specific to ending fixed-term contracts. Include when organization regularly uses fixed-term contracts.
6. Probationary Period Termination: Specific procedures for termination during probationary periods. Include when organization has probationary periods.
1. Schedule A - Termination Checklist: Comprehensive checklist for managers/HR to ensure all required steps are completed
2. Schedule B - Notice Period Calculator: Tool for calculating required notice periods based on length of service and employment category
3. Schedule C - Final Pay Calculator: Template for calculating final pay including all entitlements
4. Schedule D - Exit Interview Template: Standard format for conducting and documenting exit interviews
5. Schedule E - Company Property Return Form: Checklist of company property to be returned and sign-off form
6. Appendix 1 - Template Letters: Standard template letters for different types of termination scenarios
7. Appendix 2 - Relevant Legislative Excerpts: Key sections of relevant legislation for easy reference
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