Ending employment

The most common reasons employment ends are:

  • resignation
  • redundancy
  • termination or dismissal

Your obligations as an employer will depend whether you are under the state or national industrial relations system.

Notice periods

You must give notice to an employee when ending their employment. The length of notice will depend on their:

  • length of service;
  • type of employment;
  • award, agreement or employment contract; and
  • age

You can either let the employee work their notice period or you can pay them out (known as pay in lieu of notice).

If you decide to pay out the employee, they must be paid the same amount as if they had worked to the end of the notice period.

Employee entitlements

You must pay an employee all their entitlements when employment ends. These may include:

  • outstanding wages
  • accumulated annual leave
  • accrued or pro rata long service leave
  • redundancy pay

Unfair dismissal

You must have appropriate policies and procedures in place to manage employee performance. Terminating or dismissing an underperforming employee must be done in a manner that is fair, reasonable, and just.

More information

  • If you are under the state system, information about your obligations and unfair dismissal is available from the Department of Commerce.
  • If you are under the national system, information about your obligations and unfair dismissal is available from the Fair Work Ombudsman.