Termination letter template
A formal termination letter template for ending employment. Clearly documents the termination reason, final entitlements, return of property and post-employment obligations in a legally compliant format.
Termination letter
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Why termination letters are essential
A formal termination letter provides official confirmation of the employment ending, including the reason, final working day and next steps. It protects both the employee and employer by documenting the decision clearly.
From a legal perspective, a properly documented termination is crucial for defending against unfair dismissal claims. The letter shows you followed due process, communicated reasons clearly, and paid all entitlements correctly.
This template ensures you cover all necessary elements — termination grounds, final payments, property return and ongoing obligations — in a professional, consistent format.
Key features of this template
Designed for clear, professional and legally sound terminations
Formal documentation
Official record of the termination decision and reasons.
Key dates
Last working day, notice period and final payment details.
Reason for termination
Clear explanation of grounds for dismissal.
Final entitlements
Summary of outstanding pay, leave and other entitlements.
Return of property
List of company property to be returned.
Post-employment obligations
Reminders about confidentiality and restraint clauses.
What's included in this template
Comprehensive sections for complete termination documentation
Employee details
Full name, position, department and employee ID.
Termination date
Last working day and whether notice period applies.
Reason for termination
Clear statement of grounds (performance, misconduct, redundancy, etc.).
Summary of process
Brief reference to warnings, PIPs or other steps taken before termination.
Final payments
Outstanding wages, accrued leave, notice pay and any other entitlements.
Payment timing
When final payments will be made (usually within 7 days).
Return of property
Company assets to return: keys, laptop, phone, uniform, etc.
Post-employment obligations
Confidentiality, non-compete or restraint clauses that continue.
Right to appeal or dispute
Information about Fair Work processes if employee believes dismissal was unfair.
Acknowledgement
Employee signature confirming receipt of the letter.
Important considerations for termination
Legal requirements and best practices
Different types of termination
Terminations can occur for different reasons: performance or misconduct (with or without notice), redundancy (genuine business reasons), mutual agreement, or end of fixed-term contract. Each has different requirements around notice periods, payments and process.
Summary dismissal (instant dismissal without notice) is only appropriate for serious misconduct like theft, violence or fraud. Most other terminations require notice or payment in lieu, as specified in the Modern Award or contract.
Final entitlements and payments
Employees must be paid all outstanding wages, unused annual leave, long service leave (if applicable), and notice pay or payment in lieu. These payments must usually be made within 7 days of termination or on the next usual payday.
Don't withhold final pay because property hasn't been returned or there are disputes. This can lead to penalties. Address those issues separately through the proper channels.
Unfair dismissal protection
Employees who've been employed for 6 months or more (12 months for small businesses) can apply to Fair Work for unfair dismissal if they believe the termination was harsh, unjust or unreasonable. Always seek legal advice before terminating employment, especially for performance or conduct reasons.
Looking to automate this process? RosterElf's HR software handles employee offboarding digitally, eliminating paper forms and manual tracking.
Who should use this template?
Essential for any business with employees
Legal disclaimer
This template is designed to reflect Australian workplace standards and Fair Work principles at the time of publication. It is provided as a general guide only and does not constitute legal advice.
You should review and tailor this template to suit your business, industry, modern award, enterprise agreement and specific workplace circumstances. For complex situations or disputes, seek independent legal or HR advice.
Regulatory sources
This template is aligned with Australian employment termination requirements.
Ready to formalise an employment termination?
Download our Termination Letter template and ensure employment endings are documented properly and legally.
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Termination letter FAQ
- Yes. This template is fully editable. Add your company logo, adjust fields to match your processes, and remove sections that do not apply. Save your customised version as a master template for consistent use across your organisation.
- Most employment records should be kept for at least 7 years as required by Fair Work regulations. Some records, like workers compensation claims or superannuation documents, may need to be kept longer. Store forms securely and consider digitising paper records.
- Include: the termination date, reason for termination, final payment details (wages, leave entitlements, notice pay), information about returning company property, and reference to any post-employment obligations. Provide information about Fair Work if dismissal may be disputed.
- While verbal termination is technically possible, a written letter is strongly recommended for legal protection, clarity, and professionalism. The letter creates a record of what was communicated and when, which is essential if the dismissal is later challenged.
- Provide the letter at the termination meeting or immediately after. The employee should not learn of their termination through the letter — it confirms what was discussed in person. Send by email and provide a hard copy for their records. See our guide on how to terminate an employee.
Related guides
Learn more about termination procedures
Related templates
Use this template alongside these related forms
Disclaimer
This document is a general HR template provided for informational purposes only. It is not legal advice and may not reflect the latest changes in legislation or apply to every workplace situation. RosterElf Pty Ltd and the template provider accept no liability for any loss arising from reliance on this document. Users should seek independent legal advice and customise the template to ensure it complies with all relevant laws, awards and workplace requirements.