Last Updated February 27, 2024

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An Employee Termination Letter is a notice an employer gives to an employee informing them of their termination, either with or without cause. By delivering the letter, the employer gives the employee proper notice of the end of employment.

This document should include basic information regarding the employee’s dismissal, their name, and the name of the supervisor, manager, or human resources person in charge of the firing process.

An Employment Termination Letter is also known as a/an:

• End of employment letter
• Staff termination letter
• Contract termination letter
• Employee notice of termination of employment letter
• Notice of termination of employment

According to Australia’s National Employment Standards (NES), an employer generally is required to give written notice to an employee (or pay in lieu of notice) before dismissing them. However, there are some exceptions, including:

• Casual employees
• Seasonal or temporary employees
• Employees being fired for serious misconduct
• Employees with a training arrangement that are employed for a determined period of time or the length of the training arrangement
• Daily workers hired in construction or the meat industry
• Weekly workers in the meat industry who are only hired seasonally

Writing an Employment Termination Letter is an important step to take when dismissing an employee. Use our Termination Letter template to ensure no important details are missed.

1. Note the reasons for dismissal

There are many reasons why an employee just doesn’t work out. These reasons can include the employee’s conduct on the job, or their capability. However, an employee can also be let go because they’re redundant within a company.

Other reasons could include situations such as the end of a fixed-term employment or the failure to complete a probationary employment period.

2. Provide employer and employee details

For both the employer and the employee, include their names and addresses (including city, state/territory, and postcode). For the employer, also include the business type (individual or organization) and their contact information.

3. Include termination details

Make sure to include these other important details within your document:

Providing notice means that the employer notifies the employee that they will be leaving their job after some set period of time, such as four weeks. Providing pay in lieu of notice means that the employer pays the employee some amount of their wage to compensate for a shorter notice period. The pay in lieu of notice could be for all or part of the notice period.

An employer can provide an employee with:

• A notice period
• Pay in lieu of notice
• Another kind of compensation or notice

The law usually requires that an employer gives an employee notice of dismissal. You should ensure that you know how much notice is required by law or by the employment contract.

In some situations, such as when an employee exhibits serious misconduct, it’s possible to dismiss an employee with no notice.

Note the terminated employee’s official last day of work.

4. Provide final details

You can choose to provide additional details regarding the employee’s dismissal.

You can choose to include details about the termination of an employee’s benefits, if applicable. Note the day that the employee will no longer have access to their benefits, such as the last day of work, last day of the month, or last day of notice.

If the dismissed employee will receive additional compensation or assets, make note of them in the termination letter.

There may be requirements a dismissed employee must meet in order to receive compensation, such as signing a general release form. Make a note of these requirements.

List any property that you require the employee to return, such as keys, phones, computers, or company cars.

5. Include additional clauses

If there is anything that hasn’t been previously addressed in the Termination Letter template that is applicable to your situation, you can choose to make note of it here. Most Employment Termination Letters don’t need additional clauses.

6. Sign the document

Both parties must sign the document to ensure its validity. If you know the date that all parties will sign, make note of it here. You can also choose to cc someone in the letter.

An employment termination payment, also known as an ETP, is a lump sum payment made by an employer when an employee has been terminated. ETP can include:

• Payment for unused sick days or vacation days
• Payment in lieu of a notice of dismissal
• Gratuity pay
• Invalidity payment for permanent disability
• Compensation for loss of job or wrongful dismissal
• Genuine redundancy payments

Employers must also pay out any unused annual or long service leave even though these are not considered part of an employee’s ETP.

Under Australia’s unlawful termination laws, an employee who is not a national system employee may make an unlawful termination application to the Fair Work Commission if they believe they were wrongfully dismissed.

Under the Fair Workers Act, an employee cannot be terminated for the following reasons:

• The employee’s race, colour, sex, sexual orientation, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction, or social origin
• Temporary absence from work because of illness or injury
• Trade union membership or participating in union activities outside working hours or during working hours with the employer’s consent
• Not being a member of a trade union
• Taking maternity leave
• Filing a complaint against an employer’s alleged violation of the law, or participating in proceedings against the employer
• Seeking office as, acting as, or having acted in the capacity of an employee representative

Related Documents:

• Employee Offer Letter: Offer an employment opportunity to a potential new employee.
• Employee Evaluation: Measure the job performance of an employee.
• Employment Contract: Outlines the terms and conditions of employment for your newly hired employee.

Sample

Employment Termination Letter

Personalise your Employment Termination Letter.

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