Employers should note the following issues when a termination of employment occurs:
- The termination must be lawful, eg not in breach of contract, equal opportunity, discrimination or other legislation, and in compliance with any award or agreement that covers the employee and there must be a valid reason for the termination.
- The date and reasons for termination must be clear to both parties — whoever initiates the termination (employer or employee) should do so in writing.
- The employer and employee must comply with notice periods required by legislation, awards, or contract (whichever is the most generous) eg a resigning employee must give the required period of notice and a dismissed or retrenched employee must receive at least the minimum period of notice required by law, or payment in lieu of that notice (if the award or agreement permits).
- Employees must receive payment of their accrued entitlements, such as payment for untaken annual and long service leave if required by the legislation.
- Employers must meet documentation requirements, such as keeping payroll records, providing statements of termination entitlements and calculations and certificates of service.
- The employer should collect any employer property issued to the employee before the employee leaves (such as vehicles, mobile phones, credit cards, business cards, uniforms, product samples, security/access cards, etc).