Resignation Letter under Disciplinary Action (Australia)

Create a professional Resignation Letter for Australia. Covers notice period requirements under the Fair Work Act 2009 and National Employment Standards (NES), final day confirmation, and handover arrangements.

An Australian Termination Letter is a formal written notice issued by an employer to inform an employee that their employment is being terminated. Under the Fair Work Act 2009 (Cth), employers must provide written notice of termination, comply with minimum notice period requirements, pay all outstanding entitlements, and observe procedural fairness to avoid unfair dismissal liability. This document is drafted in accordance with the National Employment Standards (NES) under Part 2-2 of the Fair Work Act 2009 (Cth) and the Superannuation Guarantee (Administration) Act 1992 (Cth). What is an Australian Termination Letter? A Termination Letter (also called a notice of termination of employment, a dismissal letter, or a separation notice) is a written document that formally ends the employment relationship. It is required under the Fair Work Act 2009 (Cth) s 117, which provides that an employer must not terminate an employee's employment unless the employer has given the employee written notice of the day of termination, or has paid the employee in lieu of the notice period. For employees who have completed a minimum employment period (generally six months, or one year for small business employers with fewer than 15 employees under s 383), failure to follow the correct dismissal process can lead to an unfair dismissal application to the Fair Work Commission. When is a Termination Letter Required? An Australian Termination Letter is required in the following situations: when an employer terminates an employee for cause (misconduct or unsatisfactory performance), when an employer terminates employment without cause (no-fault termination), at the end of a probationary period, where a position is being eliminated but the termination does not constitute a genuine redundancy under s 389, and in any other situation where the employment relationship is ended by the employer's initiative. For genuine redundancies, a Redundancy Letter should be used instead. Where serious misconduct justifies summary dismissal (under the Fair Work Regulations 2009 reg 1.07), no notice period is required, but a written record of the dismissal is still strongly recommended. Key Elements of an Australian Termination Letter A compliant Australian Termination Letter should include the following elements: 1. Employer and employee identification: Full legal names, entity type (e.g. Pty Ltd), job titles, department, and commencement date. 2. Type of termination: Whether the termination is for cause (misconduct or performance), serious misconduct (summary dismissal), no-fault, or end of probation. 3. Reason for termination: A clear factual explanation of the reason for termination. The Fair Work Act 2009 (Cth) s 387(a) requires that, to avoid an unfair dismissal finding, the reason for dismissal must be sound, defensible, and well-founded. 4. Notice period: The applicable notice period under the Fair Work Act 2009 (Cth) s 117, calculated on the basis of continuous service. A five-week minimum applies to employees aged 45 or over with at least two years of continuous service. 5. Notice arrangement: Whether the employee will work out the notice period or receive a payment in lieu of notice (PILON). 6. Final pay entitlements: Wages to the termination date, accrued but unused annual leave (which must be paid out on termination under the NES), any applicable long service leave, and payment in lieu of notice. 7. Superannuation: Superannuation contributions at the applicable Superannuation Guarantee rate under the Superannuation Guarantee (Administration) Act 1992 (Cth) must be paid on all ordinary time earnings in the final pay period. 8. Redundancy pay (where applicable): Employees with at least one year of continuous service who are made genuinely redundant are entitled to redundancy pay under the Fair Work Act 2009 (Cth) s 119. 9. Return of company property: A list of company property the employee must return, with a deadline. 10. Continuing obligations: A reminder that post-employment confidentiality, non-disclosure, and restraint of trade obligations continue to apply. 11. Fair Work rights: Information about the employee's right to lodge an unfair dismissal or general protections application within 21 days of the dismissal taking effect. This template is suitable for use across all Australian states and territories — New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory, and the Northern Territory — for employers in the national workplace relations system.

Create a comprehensive Employment Contract for Australia covering all National Employment Standards, salary, leave entitlements, superannuation, termination, and confidentiality under the Fair Work Act 2009 (Cth).

An Australian Redundancy Letter is a formal written document issued by an employer to notify an employee that their position has been genuinely made redundant and that their employment will end as a result. Under the Fair Work Act 2009 (Cth), a genuine redundancy is defined in s 389 and gives employees significant statutory entitlements, including redundancy pay under ss 119–123 and notice of termination under s 117. This template is designed to comply with Australian law and assist employers in managing the redundancy process fairly and transparently. What is a Genuine Redundancy Under Australian Law? Under the Fair Work Act 2009 (Cth) s 389, a redundancy is genuine if three conditions are satisfied: first, the employee's job is no longer required to be performed by anyone because of changes in the operational requirements of the employer's enterprise; second, the employer has complied with any obligation in an applicable Modern Award or enterprise agreement to consult about the redundancy; and third, it would not have been reasonable in all the circumstances for the employee to be redeployed within the employer's enterprise or an associated entity. If all three conditions are met, the employee cannot make a successful unfair dismissal claim based on the redundancy, although general protections claims under Part 3-1 of the Fair Work Act 2009 (Cth) may still be available if the redundancy involved adverse action for a prohibited reason. When is a Redundancy Letter Needed? A Redundancy Letter is needed whenever an Australian employer is eliminating a position due to genuine operational changes — such as business restructures, workforce reductions, automation, changes in customer demand, or the closure of part or all of the business. It is distinct from a Termination Letter (which is used for dismissals for cause or no-fault terminations) and should be used specifically where the redundancy pay entitlements under ss 119–123 of the Fair Work Act 2009 (Cth) apply. Key Elements of an Australian Redundancy Letter A compliant Australian Redundancy Letter should include the following key elements: 1. Employer and employee identification: Full legal names, entity type, job title, and commencement date. 2. Reason for redundancy: A genuine and specific business reason for the redundancy that satisfies the definition in s 389(1)(a) of the Fair Work Act 2009 (Cth). 3. Consultation process: A summary of the consultation undertaken with the employee, including dates of meetings, information provided, and the employee's opportunity to suggest alternatives. Compliance with consultation obligations in applicable Modern Awards or enterprise agreements is required under s 389(1)(b). 4. Selection for redundancy: Where more than one employee could be affected, a description of the selection pool and the objective, non-discriminatory criteria used for selection. 5. Redeployment assessment: Confirmation that the employer has genuinely considered redeployment options within the employer's enterprise or associated entities, as required by s 389(2) of the Fair Work Act 2009 (Cth). 6. Notice period: The applicable notice period under the Fair Work Act 2009 (Cth) s 117 based on the employee's years of continuous service, or the contractual notice period if greater. 7. Statutory redundancy pay: The redundancy pay entitlement calculated under ss 119–123 of the Fair Work Act 2009 (Cth) based on years of continuous service. Note that small business employers (fewer than 15 employees) are exempt from redundancy pay under s 121. 8. Enhanced redundancy pay (if applicable): Details of any enhanced payment above the statutory minimum, including the basis for it. 9. Accrued annual leave: All accrued but unused annual leave must be paid out on termination as a National Employment Standard under the Fair Work Act 2009 (Cth). 10. Superannuation: Superannuation contributions at the applicable Superannuation Guarantee rate under the Superannuation Guarantee (Administration) Act 1992 (Cth) must be paid on all ordinary time earnings in the final pay period. 11. Right of appeal (optional): An offer of an internal appeal process, which while not required by law is considered best practice. Tax Treatment of Redundancy Payments in Australia Genuine redundancy payments receive favourable tax treatment under the Income Tax Assessment Act 1997 (Cth) s 83-170. A tax-free component exists up to a limit calculated as $12,524 plus $6,264 for each complete year of service (2024–25 amounts — indexed annually). Amounts above this limit are taxed as employment termination payments. Employees should be encouraged to seek advice from a registered tax agent or the Australian Taxation Office. This template is suitable for use across all Australian states and territories, including New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory, and the Northern Territory.

Create an Australian Settlement Agreement for the full and final resolution of a civil dispute, including ongoing obligations, payment terms, mutual release of claims, confidentiality, non-disparagement, and discontinuance of court or tribunal proceedings. This template is designed as a comprehensive settlement document — broader than a simple deed of release — covering the full range of settlement provisions commonly used in Australian commercial, employment, construction, consumer, and personal litigation. A settlement agreement in Australia is a binding contract that resolves a dispute between parties without the need for a court or tribunal to determine the matter. It is the most common method by which civil disputes in Australia are resolved: the overwhelming majority of civil proceedings filed in Australian courts are resolved by agreement before trial. A settlement agreement documents the terms of that resolution, extinguishes the parties' rights to re-litigate the same dispute, and creates new contractual obligations (payment, performance, confidentiality) that are enforceable in their own right. The legal basis for settlement agreements in Australia is the common law of contract, supplemented by civil procedure legislation. Under the Civil Procedure Act 2005 (NSW) section 26, and equivalent provisions in other states (Civil Procedure Act 2010 (Vic), Uniform Civil Procedure Rules 1999 (Qld), Supreme Court (General Civil Procedure) Rules 2015 (Vic)), courts actively encourage parties to resolve disputes by agreement at the earliest opportunity. Failing to consider settlement may attract adverse costs consequences. For disputes involving companies, a settlement agreement may be executed as a deed (without the need for consideration) or as a simple contract (with consideration). This template is structured as a simple contract — the mutual obligations and the Settlement Amount are the consideration. Where the parties' solicitors advise that a deed format is more appropriate (e.g. where no payment is being made and the only obligation is a release), the deed format of the au-deed-of-release-mutual template may be preferred. GST implications of settlement payments in Australia are significant. Under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), a settlement payment that is in substitution for a taxable supply may be subject to GST. The ATO's GST Ruling GSTR 2001/4 addresses GST and settlement payments in detail. Parties should obtain tax advice before finalising settlement terms, particularly where the dispute relates to the supply of goods or services, employment, or insurance. This settlement agreement includes all essential elements: party identification with ABN/ACN, description of the dispute and any court or tribunal proceedings, settlement amount in AUD with GST provisions, payment method and deadline (EFT, bank cheque, trust account), instalment schedule if applicable, mutual release of all claims including unknown and contingent claims, ongoing performance obligations, discontinuance of proceedings, confidentiality, non-disparagement, non-admission of liability, representations and warranties that the parties have not assigned their claims, governing law (applicable state or territory), and the counterparts and electronic signature provisions required for modern Australian practice.