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EmploymentNZ
Employment Termination Letter Template
A termination letter formally ends an employment relationship initiated by the employer. Use our free New Zealand template to record the justification, fair process, and final pay obligations required by section 103A of the Employment Relations Act 2000.
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Fern and Oak Retail Ltd.
230 Broadway, Newmarket, Auckland 1023
+64 9 555 0100
hr@fernandoak.co.nz
1 May 2026
Daniel T. Kowalski
14 Khyber Pass Road, Grafton, Auckland 1023
RE: Termination of Employment
Effective: 15 May 2026
Dear Daniel T. Kowalski,
I am writing to formally advise you that your employment as Retail Store Supervisor with Fern and Oak Retail Ltd. will be terminated on 15 May 2026 on the grounds of serious misconduct.
This decision follows a thorough investigation and disciplinary process in which you were given a full and fair opportunity to respond to the matters raised, in accordance with the Employment Relations Act 2000 (ERA 2000, s 103A — test for justification of dismissal). The Employer is satisfied that a fair and reasonable employer could have dismissed in the circumstances and that your conduct constituted serious misconduct justifying immediate dismissal.
In accordance with your employment agreement, the Employer elects to make payment in lieu of notice rather than requiring you to work out the notice period of 4 weeks. Accordingly, your last day of work is 15 May 2026, and a payment equivalent to 4 weeks remuneration will be included in your final pay.
Your final pay will be processed and paid by 22 May 2026 and will include: (a) all outstanding wages and salary up to and including 15 May 2026; (b) payment for any accrued and unused annual leave in accordance with the Holidays Act 2003 (HA 2003, s 87); (c) any other entitlements that have accrued as at the date of termination; and (d) payment in lieu of notice as noted above. Any overpayments or amounts owed by you to the Employer will be deducted from your final pay in accordance with the employment agreement and applicable law.
Please arrange to return all Employer property on or before your last day, including any keys, access cards, company devices, documents, and any other property belonging to the Employer. All Employer Confidential Information must also be returned or destroyed at that time, and you remain bound by any confidentiality obligations under your employment agreement after termination.
You are advised of your right to raise a personal grievance under the Employment Relations Act 2000 (ERA 2000, s 114). If you believe this dismissal is unjustified, or that you have been unjustifiably disadvantaged in your employment, you must raise the personal grievance with the Employer within 90 days of the date of dismissal (or the date you became aware of the action constituting the grievance). After raising the grievance with the Employer, you may refer it to Employment New Zealand Mediation Services and, if unresolved, to the Employment Relations Authority. You are encouraged to seek independent legal advice about your rights.
This decision has not been taken lightly. We wish you the best in your future endeavours.
YOURS SINCERELY,
Jessica M. Hāpai
Human Resources Manager, Fern and Oak Retail Ltd.
Date: ____________________
Available as a print-ready PDF or an editable Microsoft Word (.docx) file.
What Is a Termination Letter?
A termination letter is the written notice an employer issues to confirm that an employee’s employment is ending. In New Zealand, dismissal must be both substantively and procedurally justified under section 103A of the Employment Relations Act 2000 — the test is whether the employer’s actions and how the employer acted were what a fair and reasonable employer could have done in all the circumstances.
Terminations fall into several categories: dismissal for misconduct or serious misconduct, dismissal for performance (following fair performance management), dismissal for medical incapacity (following appropriate process), and termination on notice in accordance with an agreed term. Redundancy is distinct and has its own specialised requirements.
A correctly drafted termination letter records the decision, the reasons, the fair process that preceded the decision, the final day of employment, the treatment of notice (worked or paid in lieu), the final pay calculation, and the employee’s right to raise a personal grievance within 90 days. It is the primary document examined by the Employment Relations Authority if the employee later challenges the dismissal.
What's Covered in This Template
Our termination letter captures the decision, process, and entitlements required for a lawful New Zealand dismissal.
Employer and Employee Details
Employer (with NZBN), employee name, position, and start date for context.
Nature of Termination
Identification of the termination type: misconduct, performance, medical incapacity, or notice.
Statement of Decision
Clear statement that the employment is being terminated and the effective date.
Reasons for Termination
Concise but complete record of the reasons, including findings from any investigation.
Process Followed
Summary of the process: investigation, meeting(s), opportunity to respond, consideration of feedback.
Notice Period
Whether notice is being worked, paid in lieu, or dispensed with (serious misconduct).
Final Pay and Leave
Outstanding wages, notice, and accrued annual leave payable under the Holidays Act 2003.
Return of Employer Property
List of property to be returned (laptop, phone, keys, credentials) and deadline.
Continuing Obligations
Confidentiality and any restraint-of-trade obligations that survive termination.
Personal Grievance Right
Notice of the right to raise a personal grievance within 90 days under section 114.
How to Issue a Termination Letter
Use this letter only after a fair investigation and disciplinary process.
- 1
Confirm Process Is Complete
Ensure you have investigated, held a meeting, given the employee an opportunity to respond, and considered their feedback.
- 2
Enter Parties and Position
Provide employer and employee details, the role, and length of service.
- 3
Record the Decision and Reasons
State the decision and set out the reasons, referring to relevant evidence and policy.
- 4
Set End Date and Final Pay
Confirm the last day of employment and provide a breakdown of final pay (wages, notice, leave).
- 5
Review and Deliver
Review for completeness and balance, deliver in a face-to-face meeting where practicable, and retain a signed copy on file.
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Legal Considerations
Dismissal is the highest-risk employer action in New Zealand and must satisfy both substantive and procedural fairness.
This template is for informational purposes only and does not constitute legal advice. Before any termination — particularly for misconduct or performance — take advice from a New Zealand employment lawyer.
Reviewed for New Zealand law
Section 103A — Justification Test
Section 103A of the Employment Relations Act 2000 requires that the dismissal, and how it was carried out, were what a fair and reasonable employer could have done in all the circumstances. In Angus v Ports of Auckland Ltd [2011] NZEmpC 160 and subsequent decisions, the Employment Court has emphasised that genuine consideration of the employee’s response is as important as investigation itself.
Fair Process Requirements
A fair disciplinary process generally involves: (a) a thorough investigation before reaching any preliminary view; (b) written notice to the employee of the concerns and the possible outcomes (including dismissal); (c) sufficient time and information for the employee to prepare a response; (d) the right to bring a support person or representative to meetings; (e) a genuine and open-minded consideration of the response before any decision; and (f) clear communication of the decision and the right to appeal where applicable.
Serious Misconduct and Summary Dismissal
Serious misconduct (e.g. theft, violence, serious safety breaches) may justify summary dismissal without notice. However, even in serious misconduct cases, the employer must still carry out a fair investigation and give the employee an opportunity to respond before dismissing. The threshold for "serious misconduct" is high — see W v Auckland Standards Committee 3 of the New Zealand Law Society [2012] NZCA 401 and Warwick Henderson Gallery v Weir [2015] NZEmpC 57.
Personal Grievance Timeframe
Under section 114 of the Employment Relations Act 2000, an employee must raise a personal grievance for unjustified dismissal within 90 days of the dismissal (or the date the dismissal came to their notice). The employer must include clear advice of this right in the termination letter — omitting it can extend the time limit.
Frequently Asked Questions
Issue a Fair, Defensible Termination
Create a compliant New Zealand termination letter in minutes. Document the decision, process, and final pay in line with section 103A.
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