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Employee termination
in Australia.

SALARY PAYMENT IN Australian Dollars (AUD, $)

CONTRACT LANGUAGES English

PAYROLL TAX 15.85%

PAYROLL CYCLE Weekly or bi-weekly

TIME TO HIRE 12 hours

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Valid reasons to terminate employment in Australia

It is difficult to terminate an employee in Australia unless an employer has a valid reason. Some valid reasons to terminate an employee include:

  • The employee does not fulfill all the requirements of the role
  • Poor work performance or lack of care
  • Misconduct, inappropriate or dangerous behaviour at work
  • The position is no longer available or needed for the business to operate

Unfair reasons to terminate employment in Australia

There are several reasons that could constitute unfair dismissal in Australia. Some of these reasons include:

  • The person was dismissed in a harsh, unjustly or unreasonable manner
  • The person works for a small business and the dismissal breaches the termination rules as set out by the Small Business Fair Dismissal Code.
  • The dismissal was not a genuine redundancy

In simple terms, if a dismissal could be considered unjust, harsh or unreasonable. For a dismissal to be considered either of these sentiments, there must be proof that:

  • There was no valid reason for the dismissal
  • No notice was given or opportunity to respond by the employee
  • There was no support person allowed at dismissal discussion
  • Lack of HR services to guide a business dismissal procedure

Dismissal procedure in Australia

This is the standard dismissal procedure in Australia when terminating an employment contract.

  1. Organise a meeting and offer that the employee bring a support person to the meeting.
  2. Treat the employee in a fair and reasonable manner when delivering the news, and be open to responses.
  3. Ensure that you are providing the adequate compulsory notice period or any other alternative arrangements based on the legislation and employees wishes.
  4. Provide a written notice that outlines the reason for the dismissal.

Once an employee has left the role after the designated notice period ends, ensure all annual leave, payment in lieu, severance pay or any other payments are finalised.

Resignation procedure in Australia

There is no set resignation process in Australia. Employees should give the amount of notice necessary or stipulated in their employment contracts when resigning from their position.

Hiring in Australia, Made Easy

Your business can easily hire employees in Australia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Australia labour laws make it difficult to terminate employees unless there is a valid reason behind the termination and the employer meets other minimum notice and termination standards outlined under the Fair Work Act 2009.

There is a risk that if you do not meet or have a legitimate dismissal procedure in place that meets Australian employment law standards, then a claim of unfair dismissal can be brought before the organisation. To mitigate this risk, you must ensure you understand all legislation and rules regarding termination.

Retaliation from a disgruntled employee is another risk, but if the dismissal procedure is handled professionally, this can mitigate this from happening.

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