Termination of employment policy template
A free, ready-to-edit termination of employment policy template for Australian workplaces. Set out a fair, lawful framework for resignation, redundancy and dismissal — with the correct notice periods, final pay and procedural fairness steps to reduce the risk of an unfair dismissal claim. No signup required.
Termination of employment policy
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By downloading, you agree to our template disclaimer
This termination of employment policy template reflects Australian Fair Work standards and the National Employment Standards at the time of publication and is provided as a general guide to adapt for your business. Termination is a high-risk area — for any employer-initiated dismissal, seek independent legal or HR advice. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why your workplace needs a termination policy
Ending employment is one of the most legally sensitive things a business does. Australia has no ‘at-will’ employment — under the Fair Work Act 2009 you must give the correct written notice, have a valid reason for any dismissal, and follow a fair process. Get it wrong and you risk an unfair dismissal claim, underpaid entitlements, or a damaged reputation.
A termination of employment policy makes sure every departure — whether a resignation, a genuine redundancy or a dismissal — is handled consistently, fairly and lawfully. It sets clear expectations for notice periods, spells out what employees are owed in their final pay, and gives managers a documented process to follow before any termination decision is made.
This template applies to all employees across full-time, part-time and casual arrangements. Store it and capture employee acknowledgements in your HR software so you can show every worker has read and understood how employment ends at your business.
What a termination policy should cover
The essentials of a fair, lawful framework for ending employment
Types of termination
Resignation, redundancy, dismissal and end of fixed-term contract.
Notice periods
The NES minimum notice required for each length of service.
Procedural fairness
A valid reason and a fair process before any dismissal decision.
Final pay
Outstanding wages, accrued leave and any redundancy pay owed.
Exit procedures
Handover, property return and removing system access.
Record keeping
Documentation you must keep when employment ends.
What's included in this template
A complete framework for managing every type of employment ending
Purpose & scope
Why the policy matters and who and when it applies to.
Policy statement
Your commitment to fair, lawful and consistent terminations.
Types of termination
Resignation, redundancy, dismissal and end of contract.
Notice requirements
Minimum notice by length of service, plus award and contract terms.
Resignation process
How employee-initiated departures and early release are handled.
Redundancy process
Consultation, redeployment, selection and redundancy pay.
Dismissal & misconduct
Performance-based dismissal and summary dismissal for serious misconduct.
Final pay & entitlements
What must be paid, including accrued leave, and when.
Exit procedures
Handover, exit interview, property return and access removal.
Review & acknowledgement
Policy maintenance and employee sign-off.
Terminating an employee in Australia
Follow the right notice, reason and process to stay compliant
Minimum notice periods (NES)
Under the National Employment Standards the minimum written notice depends on continuous service: less than 1 year — 1 week, 1 to 3 years — 2 weeks, 3 to 5 years — 3 weeks, and 5+ years — 4 weeks. Add one extra week for employees over 45 with at least 2 years’ service. Modern awards, enterprise agreements or contracts may require more — never less.
A valid reason and a fair process
Because there is no ‘at-will’ employment in Australia, a dismissal needs a valid reason and procedural fairness — usually documented warnings, a chance for the employee to respond, and a support person allowed at meetings. Skipping these steps is the most common cause of an unfair dismissal claim. See our guide on how to terminate an employee.
The four types of termination
Resignation
Employee gives notice; confirm it in writing and manage the notice period.
Redundancy
The job no longer exists; consult, consider redeployment and pay redundancy.
Dismissal
For performance or conduct, after a fair, documented process.
End of contract
A fixed-term or maximum-term contract reaches its agreed end date.
On termination, final pay must include all outstanding wages, accrued but unused annual leave, and any long service leave owing — typically paid within 7 days. Summary (immediate) dismissal without notice is only justified for serious misconduct, and you still need to investigate and let the employee respond. Issue a termination letter to confirm the details in writing.
Genuine redundancy requires the role itself to no longer exist — not just the person in it — with real consultation beforehand. Before dismissing for performance, follow a documented process and consider issuing a warning letter. For serious allegations, run a fair workplace investigation and record every step. The Fair Work Ombudsman provides detailed guidance on ending employment and dismissal.
Who should use this template?
Any Australian business that employs people
Especially valuable for managers and supervisors, who handle resignations and lead difficult termination conversations.
Compliance resources
Official guidance on ending employment, dismissal and final pay.
Manage offboarding the easy way
RosterElf helps Australian businesses store policies, capture employee acknowledgements, run a consistent offboarding checklist and keep an audit trail — all in one place.
Related guides
Run terminations and warnings the right way
Related templates
Complete your offboarding toolkit
Termination letter template
Confirm the end of employment, reason and final pay in writing.
View templateExit management policy
Manage handover, exit interviews and the practical side of departures.
View templateMisconduct policy
A fair disciplinary process that may lead to a dismissal decision.
View templateTermination policy FAQ
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A termination of employment policy sets out how a business ends employment fairly and lawfully. It typically covers its purpose and scope, the types of termination (resignation, redundancy, dismissal and end of contract), the notice periods required, the procedural fairness steps before a dismissal, what must be included in final pay, and the exit procedures and records to keep. This free template gives you that complete framework to adapt for your workplace.
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Yes. The template is a solid starting point, but you should tailor it to your workplace, management structure and any applicable modern award or enterprise agreement. Make sure the notice periods and procedures align with Fair Work requirements, then store it and track acknowledgements in your HR software.
Before you download
General information only — not legal advice
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.