Termination Letter Template
A termination letter formally ends an employment relationship and records the reasons, notice period, and final entitlements. Use our free Australian template to issue a compliant, respectful termination that follows the Fair Work Act 2009 (Cth), the National Employment Standards, and any applicable modern award or enterprise agreement.
We refer to your employment with Harbour Digital Pty Ltd as Senior Project Manager. We write to formally advise you that your employment will be terminated on the grounds of redundancy, effective 9 May 2026.
Your notice period is two (2) weeks, consistent with the minimum requirements prescribed by the Fair Work Act 2009 (Cth) s. 117. Your last day of work is 9 May 2026.
As your position has been made redundant, you are entitled to redundancy pay of 6 week(s) of base pay, calculated in accordance with the Fair Work Act 2009 (Cth) s. 119. This will be included in your final payment.
Your final payment will be made on 15 May 2026 and will include all accrued entitlements, including outstanding wages, accrued annual leave, and any other entitlements required by the Fair Work Act 2009 (Cth) and the National Employment Standards (NES). Please ensure your bank details on file are current.
Please ensure that the following company property is returned to HR no later than your last day of employment:
Laptop (MacBook Pro, serial: C02X1234), access card, car park permit
You have the right to seek advice about this decision. If you believe this termination is harsh, unjust, or unreasonable, you may be entitled to lodge an unfair dismissal application with the Fair Work Commission within 21 days of your last day of employment (Fair Work Act 2009 (Cth) s. 394). The Fair Work Commission Infoline is 1300 799 675.
What Is a Termination Letter?
A termination letter is a formal written notice from an employer to an employee ending the employment relationship. It records the date the termination takes effect, the reasons (where given), the notice period or payment in lieu, the final payment due, and the return of company property. A termination letter may also cover a termination during probation, redundancy, or summary dismissal for serious misconduct.
In Australia, termination of employment is closely regulated. The Fair Work Act 2009 (Cth) sets minimum notice periods in section 117 of the NES — 1 to 5 weeks depending on length of service, plus an additional week for employees aged 45 or more with at least 2 years' service. Redundancy pay is prescribed by section 119. Unfair dismissal protection under Part 3-2 and general protections under Part 3-1 apply to most employees.
Employees who complete the minimum employment period (6 months, or 12 months for small business employers) and are covered by an award, agreement, or earn below the high-income threshold can bring an unfair dismissal claim in the Fair Work Commission. Remedies include reinstatement and compensation up to 26 weeks' pay (capped at half the high-income threshold). A carefully drafted termination letter, supported by a fair procedure, reduces the risk of a successful claim.
What's Covered in This Template
Our termination letter template records every element needed for a compliant and defensible termination.
Employer and Employee Details
Legal names, ABN, position, and employment commencement date.
Termination Type
Ordinary termination on notice, summary dismissal, redundancy, or end of probation.
Reason for Termination
Factual reasons expressed professionally and fairly.
Last Day of Employment
Termination date and, where applicable, garden leave dates.
Notice Period
Notice consistent with the NES, contract, or applicable award.
Payment in Lieu
Calculation and treatment of payment in lieu of notice.
Final Pay
Outstanding wages, accrued annual leave, and long service leave where applicable.
Redundancy Pay
Redundancy payment calculated under section 119 of the Fair Work Act 2009 (Cth).
Return of Property
Return of laptops, keys, uniforms, and confidential materials.
Post-Employment Obligations
Confidentiality, restraint of trade, and non-solicitation reminders.
Employer Contact
Contact person for final-pay and reference queries.
Access to Advice
Information about the Fair Work Ombudsman and right to seek advice.
How to Create a Termination Letter
Follow these steps to produce a compliant termination letter in minutes.
- 1
Enter Party Details
Provide employer legal name, ABN, and employee details including commencement date and position.
- 2
Select Termination Type
Choose ordinary termination, summary dismissal, redundancy, or end of probation.
- 3
State the Reason
Describe the factual reasons for termination in professional, objective language.
- 4
Calculate Notice and Final Pay
Set notice period, payment in lieu, accrued leave, and any redundancy pay under the NES.
- 5
Review and Download
Add property return items and post-employment obligations, then download the PDF.
Legal Considerations
Termination is a high-risk area where procedural fairness is as important as substantive grounds.
This template is for informational purposes only and does not constitute legal advice. Termination decisions should be reviewed by a qualified Australian employment lawyer where possible.
Reviewed for Australian law
Minimum Notice under the NES
Section 117 of the Fair Work Act 2009 (Cth) requires written notice of termination. The minimum period is: 1 year or less — 1 week; more than 1 year up to 3 — 2 weeks; more than 3 up to 5 — 3 weeks; more than 5 — 4 weeks. Add one week for employees aged 45+ with at least 2 years' service. The contract or award may require longer notice.
Redundancy Pay
Section 119 of the Fair Work Act 2009 (Cth) sets the redundancy pay scale, ranging from 4 weeks' pay (1–2 years' service) up to 16 weeks' pay (9–10 years' service). Small businesses with fewer than 15 employees are exempt. Redundancy requires that the role is genuinely no longer required and the employer has consulted in accordance with the applicable modern award or agreement.
Unfair Dismissal Risk
The Fair Work Commission assesses unfair dismissal claims against whether the dismissal was harsh, unjust, or unreasonable, applying the criteria in section 387: valid reason, notification and opportunity to respond, opportunity to have a support person, warnings about performance, employer size, and HR expertise. Sham redundancy is separately actionable under section 389.
General Protections and Discrimination
Part 3-1 of the Fair Work Act prohibits adverse action because of a workplace right, industrial activity, or protected attribute (race, sex, age, disability, etc.). State anti-discrimination Acts (e.g., Anti-Discrimination Act 1977 (NSW), Equal Opportunity Act 2010 (Vic)) provide additional remedies. Termination letters should never reference a protected attribute as a reason.
Frequently Asked Questions
Create Your Termination Letter Now
Manage a difficult process with a clear, compliant termination letter. Fill in the details and download the PDF in minutes.
Free · Instant PDF · No account required