Termination of employment is the ending of the employment relationship through resignation, dismissal, or other means.
Legislation: Fair Work Act 2009 | Category: Employment Law
What is Termination?
Termination of employment is the ending of the employment relationship. Termination can occur through resignation by the employee, dismissal by the employer, expiry of a fixed-term contract, mutual agreement, or by operation of law (such as frustration of contract). The manner of termination determines the applicable entitlements and potential legal claims.
Employer-initiated termination can take various forms: termination with notice (for any lawful reason), summary dismissal without notice (for serious misconduct), redundancy (due to operational changes), or termination during probation. Each has different procedural requirements and risks.
Key Compliance Points for Employers
- All accrued entitlements (leave, wages) must be paid on termination
- A separation certificate should be provided if requested
- Final pay is due within 7 days of termination or according to the normal pay cycle
- Consider unfair dismissal, general protections, and discrimination risks before terminating
- Documentation of the reason and process is essential for defending potential claims
Frequently Asked Questions
What is Termination?
Termination of employment is the ending of the employment relationship through resignation, dismissal, or other means.
Why is Termination important for employers?
Understanding termination helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
