Termination

Resignation

A resigning employee is paid any accrued annual leave, including leave loading (the Pastoral Award 2020 requires loading to be paid out on termination). Long service may also be payable under state law — see long service leave. Notice follows the award: under the Pastoral Award 2020, employees give the same notice as employers, without the extra week based on age. If proper notice is not given, the employer may deduct the notice shortfall from the final pay.

Dismissal with notice

If conduct is not serious enough for instant dismissal, or performance is unsatisfactory, an employee can be dismissed with notice. Notice of termination comes from the National Employment Standards and applies to all employers. Casual and seasonal employees are excluded. Under the Pastoral Award 2020, employees must give the same notice as employers, though the employer's notice must be in writing. If an employee fails to give notice, the employer may deduct up to one week's pay for employees aged 18 or over (no deduction for under-18s). Notice pay must equal what the employee would have earned over the notice period.

Summary dismissal

Summary (instant) dismissal is termination without notice, used only for deliberate, serious misconduct where continued employment is unreasonable — for example theft, fraud, assault, intoxication at work, refusing lawful orders, or behaviour posing a serious risk to health, safety or the business. Allegations of theft, fraud or violence should be reported to police. Notice or pay in lieu is not required in these cases. But if similar behaviour was previously tolerated, instant dismissal may not be justified — issue written warnings and consider dismissal with notice if there is no improvement (this does not apply to criminal offences). Keep detailed records to defend any claim.  

Unfair and unlawful dismissal

A dismissal may be challenged as unfair if it is harsh, unjust or unreasonable. Eligibility depends on the employee's length of service, the size of the business, and an income threshold, and the Small Business Fair Dismissal Code applies to small employers. These thresholds change — check the current position with the Fair Work Ombudsman. A dismissal may be unlawful (a general protections matter) if it is for a discriminatory or otherwise protected reason, such as age, sex, race, disability, pregnancy, or exercising a workplace right.

Fair procedures

Fair process reduces risk: raise concerns clearly, give the employee a chance to respond, allow a support person, give a reasonable opportunity to improve where relevant, and document each step.  

Redundancy

A role is redundant when it is genuinely no longer needed. Redundancy pay is set by the National Employment Standards, scaled to length of service, and small businesses may be exempt. Because the scale and exemptions are detailed and can change, see the Fair Work Ombudsman for the current position.

Final pay and exit interviews

On termination, pay all amounts owing — outstanding wages, accrued annual leave with loading, and any other entitlements. An exit interview, while optional, can surface useful insights for retention.