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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.
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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.
Our termination letter template records every element needed for a compliant and defensible termination.
Legal names, ABN, position, and employment commencement date.
Ordinary termination on notice, summary dismissal, redundancy, or end of probation.
Factual reasons expressed professionally and fairly.
Termination date and, where applicable, garden leave dates.
Notice consistent with the NES, contract, or applicable award.
Calculation and treatment of payment in lieu of notice.
Outstanding wages, accrued annual leave, and long service leave where applicable.
Redundancy payment calculated under section 119 of the Fair Work Act 2009 (Cth).
Return of laptops, keys, uniforms, and confidential materials.
Confidentiality, restraint of trade, and non-solicitation reminders.
Contact person for final-pay and reference queries.
Information about the Fair Work Ombudsman and right to seek advice.
Follow these steps to produce a compliant termination letter in minutes.
Provide employer legal name, ABN, and employee details including commencement date and position.
Choose ordinary termination, summary dismissal, redundancy, or end of probation.
Describe the factual reasons for termination in professional, objective language.
Set notice period, payment in lieu, accrued leave, and any redundancy pay under the NES.
Add property return items and post-employment obligations, then download the PDF.
Four things that make our templates more thorough than AI-generated drafts and more current than static template libraries.
Drafted with legal expertise for each jurisdiction, far more thorough than AI-generated drafts that copy generic clauses across borders.
Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.
Free to download. Vector text, embedded fonts, statute citations baked in. Print, sign, file. Ready for any signing flow including electronic signature.
Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.
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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
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.
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.
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.
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.
Manage a difficult process with a clear, compliant termination letter. Fill in the details and download the PDF in minutes.
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