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Business Reference Letter For A Company
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Letter of termination of employment (redundancy) template
You can use this letter to provide an employee with written notice of termination due to
redundancy.
Generally, employers must not terminate an employee’s employment unless the employer has
given the employee written notice of the day of the termination of the employment (which
cannot be earlier than the day the notice is given). When you make an employee redundant,
you may also have to pay redundancy entitlements and notify Centrelink.
Visit www.fairwork.gov.au/termination for more information about redundancy and notice
periods.
Important: it is unlawful to make a job redundant for discriminatory reasons or reasons that
include discriminatory grounds.
Are you a small business owner
If you operate a small business it is important that you follow the Small Business Fair Dismissal
Code when terminating an employee’s employment. Using this template may help you to
comply with the code.
Suggested steps for preparing a letter of termination of
employment
If at any time you need more information or assistance, call the Fair Work Infoline on 13 13 94
or visit www.fairwork.gov.au.
Step 1: Communicate changes to the employees affected
Regular communication with employees is important during periods when a business is undergoing
major workplace change. Most modern awards and enterprise agreements require employers to
consult with their employees regarding changes, including changes to production, organisation,
structure or technology.
An employer should:
inform employees about changes within the business that may affect their working arrangements
provide employees with an opportunity to ask questions, and
consider all options and alternatives to redundancies, such as redeployment, job sharing and
reduced overtime.
For further information on this topic, see the Best Practice Guide: Consultation & cooperation in the
workplace.
Step 2: Find out about notice periods and redundancy entitlements
Determine what the minimum notice of termination and redundancy pay entitlements are for affected
employees. Notice of termination and redundancy entitlements are contained in the National
Employment Standards, however awards and enterprise agreements often include additional
redundancy entitlements for employees. If there is an applicable industrial instrument, contract of
employment or workplace policy that provides different redundancy amounts than the National
Employment Standards, you need to provide the employee with whichever is more generous.
The employee can work the notice period or the employer can pay the employee in lieu of that notice.
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source: fairwork.gov.au
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