The Termination Cover Letter is a essential formal document used in Australian employment contexts to officially communicate and document the end of an employment relationship. It must be drafted in compliance with the Fair Work Act 2009 and other relevant Australian employment legislation, ensuring all legal requirements are met. This document is typically used when employment is terminated for any reason, including resignation, redundancy, performance issues, or end of contract. The letter serves multiple purposes: it confirms the termination in writing, specifies the end date and notice period, outlines final payments and entitlements, details the return of company property, and documents any post-employment obligations. A properly drafted Termination Cover Letter is crucial for risk management and may be required as evidence in potential future legal proceedings.
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1. Letter Header: Company letterhead, date, and reference number if applicable
2. Addressee Details: Employee's full name and address
3. Formal Greeting: Professional salutation using the employee's name
4. Statement of Termination: Clear and unambiguous statement that employment is being terminated
5. Effective Date: Specific date when employment will end, including last day of work
6. Notice Period Details: Information about notice period or payment in lieu of notice
7. Final Payment Information: Overview of final pay, including outstanding wages, leave entitlements, and other payments
8. Return of Company Property: List of company items to be returned before departure
9. Closing Statement: Professional conclusion and contact information for questions
10. Signature Block: Name and position of authorized company representative
1. Reason for Termination: Include when termination is due to redundancy, poor performance, or misconduct - should be brief and factual
2. Reference to Prior Discussions: Include when termination follows documented performance reviews or warnings
3. Redundancy Payment: Include when termination is due to redundancy, specifying entitled payments
4. Post-Employment Restrictions: Reference to existing confidentiality, non-compete, or other ongoing obligations
5. Outplacement Support: Include when company is offering career transition services
6. Garden Leave: Include when employee is not required to work during notice period
7. Settlement Agreement Reference: Include when termination is part of a negotiated exit
1. Final Payment Calculation: Detailed breakdown of final payment including all entitlements
2. Company Property Checklist: Itemized list of company assets to be returned
3. Certificate of Service: Standard employment reference confirming dates and position
4. Employee Entitlements Statement: Statement of accrued leave and other benefits
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