Types of termination
Employment can end in several ways, each with different implications for entitlements and process requirements under the Fair Work Act.
Employer-initiated
- Dismissal (with notice)
- Summary dismissal (misconduct)
- Redundancy
- End of fixed-term contract
Employee-initiated
- Resignation (with notice)
- Abandonment of employment
- Constructive dismissal claim
- Mutual agreement to end
Notice period requirements
The National Employment Standards set minimum notice periods based on length of continuous service:
Minimum notice periods (NES)
Final pay entitlements
When employment ends, employees must receive all outstanding entitlements in their final pay:
- Outstanding wages: Payment for all hours worked up to termination
- Accrued annual leave: All untaken annual leave plus loading if applicable
- Long service leave: If eligible under state/territory laws
- Notice pay: If notice period not worked out (payment in lieu)
- Redundancy pay: If applicable for genuine redundancy
- Other entitlements: Accrued bonuses, commissions, allowances owing
Final pay timing
There is no legislated deadline for final pay, but the Fair Work Ombudsman recommends payment within 7 days of termination or on the next scheduled pay day, whichever is sooner. Some awards specify timeframes. Unreasonable delay may constitute underpayment.
Termination process
Fair termination process
- Valid reason related to capacity or conduct
- Notify employee of reason
- Opportunity to respond
- Allow support person
Documentation required
- Termination letter with reason
- Final pay calculation
- Employment separation certificate
- Records of warnings if applicable
Common termination mistakes
No procedural fairness
Terminating without giving the employee a chance to respond to concerns. This is a key factor in unfair dismissal claims.
Insufficient notice
Not providing the required notice period or payment in lieu. Check both NES minimums and any award/contract requirements.
Incorrect final pay
Missing accrued leave, not including leave loading, or calculating entitlements incorrectly. Maintain accurate records throughout employment.
Key takeaways
Termination of employment must follow fair process with proper notice and full final pay. Different termination types have different requirements—dismissal, redundancy, and resignation each involve specific considerations.
Accurate time and leave records throughout employment make final pay calculations straightforward. RosterElf tracks hours worked and leave balances, supporting accurate termination payments and compliance.
