The Employment Termination Policy serves as a crucial governance document for organizations operating in New Zealand, providing a framework for managing the end of employment relationships in compliance with local employment law. This policy is essential for ensuring consistent and lawful handling of all types of employment terminations, from voluntary resignations to dismissals and redundancies. It incorporates requirements from key New Zealand legislation including the Employment Relations Act 2000, Human Rights Act 1993, and Privacy Act 2020, while providing practical guidance for employers and managers. The Employment Termination Policy helps organizations minimize legal risks, maintain professional standards, and protect both employer and employee interests during the termination process.
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1. Purpose and Scope: Defines the policy's objectives and to whom it applies within the organization
2. Definitions: Clear definitions of key terms used throughout the policy, including types of termination
3. Legal Framework: Reference to relevant NZ legislation and employment standards that govern termination
4. Types of Termination: Overview of different termination categories (resignation, dismissal, redundancy, etc.)
5. Notice Periods: Required notice periods for different types of termination and positions
6. Procedural Requirements: Step-by-step procedures for handling different types of termination
7. Final Pay and Entitlements: Process for calculating and paying final wages, leave, and other entitlements
8. Return of Company Property: Requirements and procedures for returning company assets and equipment
9. Confidentiality and Ongoing Obligations: Post-employment obligations regarding confidential information
10. Exit Procedures: Standard exit processes including interviews, handovers, and documentation
1. Garden Leave: Procedures for placing employees on garden leave during notice periods - include for senior roles
2. Redundancy Provisions: Detailed redundancy procedures and entitlements - include if organization offers redundancy benefits
3. Performance Management: Link to performance management procedures leading to termination - include if not covered in separate policy
4. Dispute Resolution: Internal dispute resolution procedures - include if not covered in separate policy
5. Medical Incapacity: Procedures for termination due to medical conditions - include if not covered elsewhere
6. Fixed-term Contracts: Specific provisions for ending fixed-term contracts - include if organization uses fixed-term employees
1. Schedule 1: Termination Checklist: Detailed checklist for managers to ensure all termination steps are completed
2. Schedule 2: Exit Interview Template: Standard format for conducting and documenting exit interviews
3. Schedule 3: Final Pay Calculation Guide: Guide for calculating final pay including leave entitlements
4. Appendix A: Template Letters: Templates for termination-related correspondence
5. Appendix B: Property Return Form: Checklist for recording return of company property
6. Appendix C: Confidentiality Reminder: Template document outlining ongoing confidentiality obligations
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