Ending an employee’s contract is one of the most difficult conversations you can have and may lead to confrontation. You must ensure that you have explored all the alternative avenues before committing to this action. The following is a summary of important steps to consider during the termination process:
  • Treat dismissal as a last resort. It can be expensive to replace employees and recruit and train new staff and there is no guarantee that the new staff will be better!

  • Check the terms of the contract regarding termination.

  • Check the law. There is legislation in place to protect workers from unfair dismissal. Ensure you are not in breach of this legislation. (Fair Work Act 2009)

  • Notify the employee of his/her dismissal in writing, briefly stating the reasons.

  • Where summary dismissal is a possibility, (e.g. for serious misconduct), fully investigate before making a decision.

  • Notify any other parties affected by the termination. Only advise them that the employee is leaving/has left the job, not the reasons for it.

  • Calculate the employee’s pay entitlements and prepare a detailed statement to issue to the employee.

  • Arrange the return of any property (e.g. mobile telephone, laptop, business cards, office keys, security passes etc.).

  • Update the employment records to include all details of the termination of the employee.

  • Issue a Group Certificate to the relevant employee, within the required time period after employment ceases.

  • If you are unsure about any of the above steps, seek professional advice.

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