What is it?
Termination of employment happens when an employee’s job ends with an employer, either through resignation or dismissal.
Employers must handle termination sensitively and consistently. Employers should follow the Termination Policy and Procedure, which reflects employer obligations under workplace legislation.
There are specific rules that an employer must follow should they dismiss an employee due to redundancy or bankruptcy.
Reasons for Termination
There must be a valid and justifiable reason for the termination of an employee. Examples of this reasoning being:
- Poor or underperformance: Evidenced inability to meet the expectations or skills required of the role, lack of diligence or care within work efforts or within the workplace.
- Capacity: Unable to meet the requirements set for the job description/role.
- Misconduct: Employee behavior or actions that are against company policy or code of conduct, an act that breaches the conditions set within an employment contract, and is unlawful.
- Redundancy: When an employee’s role is no longer needed and they are terminated, the role will remain unfilled. When an employer experiences insolvency or bankruptcy, they may be forced to terminate their employees due to specific circumstances.
Unfair Dismissal
When an employment relationship ends, an employee can lodge an unfair dismissal claim with the Fair Work Commission. Employers can reduce the risk of unfair dismissal claims by managing the termination process consistently, fairly, and in line with workplace laws. Follow clear steps, document decisions, and give both the employer and employee a genuine opportunity to respond and be heard. During an unfair dismissal investigation, the Fair Work Commission reviews the employer’s policies and procedures, so employers should update these documents regularly to stay compliant with current and changing legislation.
How to Terminate
In accordance with the Fair Work Act 2009, an employment contract can be terminated in the circumstance that:
- A genuine redundancy has occurred.
- A termination is not harsh or unreasonable.
- A summary dismissal occurs when the termination is due to extreme circumstances involving serious misconduct.
- Evidence is given to support the termination as fair. Evidence such as:
- Written warnings administered to the employee;
- The ‘statement of termination’ that was supplied to the employee; or
- Witness statements that support the claims made.
Termination of Employment Contracts
If termination clauses are breached within an employee’s employment contract, employers may see a claim/case made against the company enforceable under contract and employment law, as well as the unfair dismissal pursuance by Fair Work.
It is pivotal for any business to regularly review dismissal and termination policies and procedures. Assurance HR are specialists within both industrial relations and human resources, often being utilized as a neutral third party to ensure that a fair and accurate process is established between employer and employee. Termination of employment is a complicated and sensitive process, so do not hesitate to call one of our expert team on 1800 577 515 today for advice.
