What is it?
Termination of employment is when an employee’s employment ceases with an employer, as the employee resigns or they are dismissed.
It is critical that termination is handled sensitively within a consistent approach, with employers following Termination Policy and Procedure that has been drafted in accordance with employer obligations as determined in workplace legislation.
There are specific rules that an employer must follow should they dismiss an employee due to redundancy or bankruptcy. To find out more, review our Redundancy Info Guide.
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 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 behaviour or actions that are against Company Policy or Code of Conduct, an act that breaches the conditions set within an employment contract, and/or is unlawful.
- Redundancy: When there is no longer a need for an employees’ role and in terminating them, the role will not be filled by another. When an employer becomes insolvent or bankrupt and has to terminate due to circumstance.
Unfair Dismissal
Upon termination employees may make a claim to Fair Work for, ‘Unfair Dismissal’. To avoid or reduce the standings of such claims it is critical that employers are consistent and fair within actions throughout the termination process, demonstrating all steps have been taken to see this approached correctly with opportunities for both the employer and employee to be heard. Employer process of policy and procedure will be under review within unfair dismissal investigations and therefore it is recommended that these documents be regularly reviewed to remain compliant with evolving and relevant 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 has occurred, in the instance that the termination was for extreme circumstances of 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 employees 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 utilised as a neutral third party to ensure that 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.
