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Termination Letter Templates

Four ending-employment letters that get the details right — because this is the document that gets scrutinised later.

Why the letter matters

The termination letter is usually the single document a tribunal, lawyer or Fair Work inspector reads first. It fixes the official reason for dismissal, the dates, and the notice arrangement. A letter that's vague about the reason, wrong about notice, or inconsistent with what was said in the meeting creates problems that no amount of later explanation fully repairs. Write it carefully, and make sure it matches the process that actually happened.

Employment endings are heavily regulated in Australia, and the right steps vary with business size, tenure and award coverage — treat these templates as a starting structure and get advice before sending anything in a contested situation.

The four letters, and when each applies

Redundancy

Used when the role is no longer required — not when the person is the problem. The letter should state that the position is redundant and why (restructure, downturn, technology), confirm the last day of work, and set out notice and redundancy pay arrangements by reference to the National Employment Standards and any applicable award. A genuine redundancy also requires consultation under most awards and consideration of redeployment — the letter should be the end of that process, never the start of it.

Poor performance

Follows a documented performance process — warnings, opportunity to improve, support provided. The letter should briefly recount that history: the standard required, the steps taken (such as a performance improvement plan), and the conclusion that the standard was not met. It confirms the termination date and whether notice is worked or paid in lieu.

Misconduct

Two variants matter. For serious misconduct, employment may end without notice — but only where the conduct genuinely meets the threshold in the Fair Work Regulations, and only after the employee has had a chance to respond to the allegations. For less serious misconduct, notice still applies. The letter must state the specific conduct relied on and note that the employee's response was considered.

End of fixed-term contract

Confirms the contract is concluding on its agreed end date and won't be renewed. Simple — but check the contract's own terms and the current Fair Work rules on fixed-term arrangements, which limit how these contracts can be used and renewed.

What every letter must contain

  • The employee's full name and role, and the date of the letter.
  • The clear reason for termination, in one or two factual sentences.
  • The last day of employment, stated unambiguously.
  • Notice arrangements — worked, paid in lieu, or (for serious misconduct only) none — with the amount determined by the NES, the award and the contract, whichever is more generous.
  • Final pay details: outstanding wages, accrued annual leave, and any redundancy pay, with the timing per the applicable award or agreement.
  • Practical matters — return of property, confidentiality obligations that continue, and a contact for questions.
  • Signature of an authorised person.

Getting notice periods right

Notice is where letters most often go wrong. The minimum depends on length of service, with an additional amount for older, longer-serving employees, and the contract or award may require more than the statutory floor. Don't hard-code numbers into your template — check the Fair Work Ombudsman's current notice tables each time, and remember that some categories of worker are excluded from notice entitlements altogether.

Before you send it

  • Confirm the process happened first. The letter records a decision made fairly; it can't retrofit fairness onto a rushed one.
  • Check unfair dismissal exposure — eligibility rules and the small business code differ, and the current thresholds are on the Fair Work Commission's site.
  • Deliver it in person where possible, with a copy handed over, and keep a signed file copy.
  • Coordinate final pay and the employment separation certificate so nothing trails on for weeks.

If terminations keep landing on the owner's desk because nobody else can run the process, that's a systems gap as much as an HR one — see people operations.