Before terminating an employee’s employment because of unsatisfactory performance and/or conduct, you should make every attempt to address the issues. An employer operating at best practice may follow the steps below before terminating the employment of an employee.
If at any time you need more information or assistance, call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au.
Step 1: Highlight expected performance and behaviour standards
Step 4: Create your termination of employment letter
If the issues in question are not or can not be resolved after the employee has had a reasonable opportunity to rectify the situation, you may decide to end the employment relationship. If you decide to terminate the employee’s employment, you need to give the employee written notice of his or her termination.
The letter of termination should:
• outline the reasons for the termination of the employee’s employment
• specify the notice period or if the employee will be paid in lieu of that notice, and
• advise the employee of the last day of work.
This letter of termination template has been colour coded to assist you to complete it accurately. You simply need to replace the red < > writing with what applies to your employee and situation. Some of the sections are optional because they might not apply to your employee and can simply be deleted. Explanatory information is shown in blue italics to assist you and should be deleted once you have finished the letter.
Step 5: Meet with the employee to provide the letter of termination of employment
The reasons for termination of employment should be explained to the employee and he or she should be given an opportunity to ask questions.
It is important to carefully explain the information in the letter of termination of employment and ensure that the employee understands.
You should keep a copy of the letter of termination of employment for your records.
Important: An employee may choose to submit a complaint or claim against you (e.g. unfair dismissal, discrimination) even if you follow these steps.