Ending Employment

An employee can resign verbally or in writing. If they resign verbally, it is advisable to provide the employee with a written acknowledgement of the resignation. The minimum amount of notice they have to give you from the date of resignation depends on their length of service, and is set by federal law, their agreement or award. Their award or workplace agreement will also say what they’re entitled to when they leave. Check with the Workplace Authority on 1300 363 264 if you’re unsure about their notice period or entitlements.

What if I want the employee to leave straight away?

An employer and employee may agree to either end the employment contract without the employee working the required notice period, or agree to a shorter period of notice. If there is no agreement, an employer is required to pay out the notice if they don't want the employee to continue working.

After an employee has given notice, check to see if you need to update their position description. You'll need this for their replacement or if you plan to train an existing employee for the role.

	Detailed Job Description Template (DOC 96Kb)
	Helps in the creation of a job description with detailed sections for duties, skills and personal qualities you are looking for. You can individually adjust this document to suit your business's needs.

Here are some of the tasks you should consider in their last days at the business:

• write a reference or statement of employment
• set aside time for a thorough handover of duties, and if necessary, get them to report in writing any unfinished projects or tasks where lots of detail is involved, e.g. where they saved the files for project XYZ
• fill the job so they can train their replacement in the role
• set up an exit interview. If they are willing, it’s a good opportunity to discover how you can improve the business. Use the exit interview template below
• the day after they leave, cancel their computer codes and passwords

General record keeping reminders:

• calculate final payments: annual leave, accrued long service leave
• check with the tax office to see if any part of a lump sum is an eligible termination payment (see Online Tools for the Tax Office tool to check this)
• superannuation: pay the remaining payment (probably after they leave if you are paying quarterly)
• PAYG remember to include in the next BAS
• collect any information now for your next FBT report
• if a WorkSafe injury insurance claim is current, tell WorkSafe (see External Links) their contact details so you can send the end of year income statement

On their last day here are some of the items they should return:

• security passes and uniforms, safety gear, laptops and other company assets

Exit Interview

This is an ideal opportunity to discover through feedback from departing employees how the business could be improved.

	Exit Interview Template (RTF 517Kb)
	Assists with the questions that should be asked during an exit interview and can be adjusted to suit your company's needs.

Dismissing an Employee

Some of the reasons could be poor performance, misconduct, putting another worker in danger, refusing to follow instructions, or genuine operational reasons.

Redundancy and Retrenchment

A business can make a position redundant when the job is no longer needed to be done by anyone. The person doing the job can be given another job or retrenched. Covers the employer's obligations for final payments and notice periods and avoiding unfair or unlawful dismissal. Includes tips for a successful redundancy exercise and what a good redundancy package will include.

Alternatives to Redundancy

Tips on how make the best use of your employees' time, changing a position description, or turning a full-time position into part-time position.

Redundancy: Do the Decent and Legal Thing

Understanding the sensitivities, legalities and ethics of redundancy is not an easy task. However, this article reproduced from the SmartCompany website covers the basic rules.