Employee Termination Template - Free Download
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Letter of termination of employment (with notice)
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 before the day the notice is given).
You can use this letter when terminating an employee’s employment because of unsatisfactory
performance or conduct.
The information you need to fill in includes:
• the steps you’ve taken to counsel the employee about their performance/conduct
• the reasons for the termination of the employment
• the length of the notice period (or amount of payment in lieu of that notice period), and
• the date the employment will end.
For more information on notice periods and unfair dismissal, visit
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.
Suggested steps for preparing a letter of termination
Before terminating an employee’s employment because of unsatisfactory performance and/or conduct,
you should make every attempt to address the issues. An employer operating at best practice may
follow the steps below before terminating the employment of an employee.
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: Highlight expected performance and behaviour standards
Performance and conduct issues often arise because employees do not understand what is expected
An employer should:
• make sure the employee clearly understands their role, the expected level of output or performance,
and the expected conduct at work
• provide the employee with regular performance feedback and inform him or her of any changes
needed to his or her work or conduct
• make sure managers and supervisors are equipped to handle unsatisfactory performance or
conduct. This includes recognising the reasons for underperformance and providing feedback and
training to employees.
For more information on addressing and managing underperformance, read the Best Practice Guide:
Step 2: Identify and address the issue
Speak to the employee about any performance or conduct issues to avoid making assumptions about
the situation. Identify exactly what the employee did or does that is unacceptable and what impact this
has on the business.
Explain your intention in relation to continuing their employment and importantly set clear plans for the
employee to follow in order for him or her to improve. This might include providing training.