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How to Terminate an Employee and Live to Tell the Tale
1. Employee Backdrop in Australia The whole arena of Industrial Relations and the interaction between employer and employee is conducted within the complex framework of various statutes, state and federal, regulations and rulings and common law. Unlike 'tort' law (a civil wrong such as negligence) the practice of Industrial Relations has many interlocking precepts and requirements that make it difficult for the small business practitioner to apply without assistance. 2. Terminating an Employee When considering the termination of an employee you should give careful consideration to the possible future consequences and ensure that your actions are within the law. I the heat of the moment do not make a decision that could affect you or your business long term. Take advice. A date with the Industrial Relations Commission can be expensive, time consuming and stressful. 2.1 Industrial Relations Acts - State Most State Acts in Australia place responsibility on the employer to ensure that termination of an employee was connected with, the capacity, performance or conduct of the employee; or the operational requirements of the employer's business. 2.2 Federal - Workplace Relations Act 1996 The Workplace Relations Act 1996 provides legislative requirements regarding unfair termination of employment for Federal Employers and Employees. Grounds for unlawful termination are where the termination was harsh, unjust or unreasonable. 3. Terminating an Employee In most Industrial Relations Commissions claims the sad fact is that much of your defence will relate on how well you followed proven human resource policies, procedures and determinations of the Commission. Terminating an employee's employment in haste, not following proven human resource policies and procedures will likely result in the commission finding against you in favour of your employee Off paramount importance is your ability to keep diary notes and documentation supporting your 'actions'. If you have any doubt over the process you should take ADVICE from a professional. The law can be quite harsh and unforgiving. In Australia you can be fined up to 50% of the employees' salary plus costs n the worst case. The current threshold for a hearing by the Commission is $90,400. This means in a worst case you could be ordered to pay $45,200 plus the employees' costs plus your own costs - not a good day out. The following steps are a guideline as to the minimum you should follow:- 3.1 Counselling / Correction Speak informally with the employee informing them that this is a counselling meeting and that wish to speak with them about their behaviour and/or performance and that you welcome their explanation. Document the meeting. 3.2 First Written Warning Provide the employee with a written outline of the first warning detailing the issues of performance, expected changes, timelines and review date. Let the employee provide an explanation. 3.3 Second Written Warning Provide the employee with a written outline of the second written warning linking it to the first warning. Detail the issues of performance, expected changes, timelines and review date and spell out the consequences may get serious if change does not happened. Let the employee provide an explanation. If their explanation is reasonable you may wish to provide them with some assistance. 3.4 Final Written Warning Receiving a final written warning is a serious event. In this letter you need to outline the process that has occurred to date; counselling, first and second warning and advise the employee that termination may be imminent should performance and behaviour not be resolved. Set out expectations, guidelines, performance outcomes, goals and any relevant factors and a review date. 3.5 Show Cause Letter A show cause letter requests the employee to advise you in writing why their employment should not be terminated immediately or in a set time (48 hours). If it is for an offence such as proven stealing or dishonesty as an employee, you may terminate their employment after a verbal request to the employee and a verbal response from them AND ensuring that they had an opportunity to provide you with their side of the story. 3.6 Interview and Termination Call the employee in and let them know you have taken the decision to terminate their employment. In the letter state the reason why and how you have arrived at this decision and lay out their termination entitlements. 3.7 Post Termination Once the employee has left the premises ensure that computer permissions have been changed and where appropriate advise other employees and in some cases valued clients. 4. The Process While the process may seem long and arduous the penalties can be substantial; act in haste and repent at leisure. In any good organisation there are proven strategies in place that should circumvent going down this path. That being said it is inevitable that this process is likely to occur within your business lifetime. If termination becomes a potential reality; seek help. More information available at www.biz-momentum.com Philip (Phil) Lye is Director of Biz Momentum providing professional services in employee relations (HR / IR Matters), training your people to work with you, 'coaching you' to be a better executive and commercial business consultation. Phil is a 'keynote-speaker' who speaks with passion on subjects like 'kindness and the bottom line', 'last one standing', 'down and outers and up and outers', 'more from less on your bottom line' as well as a diverse range of other topics. Phil started his working career as the 'postage clerk' in banking and finance rising through various business opportunities to CEO and CFO of two companies before leaving to start his own business in 2002. Phil holds qualifications in Accounting, Leadership, Human Resource Management & Industrial Relations. Though a qualified accountant, he chooses not to be in general practice.
MORE RESOURCES: US Department of Labor releases new Job Corps Transparency Report U.S. Department of Labor (.gov) Careers at FEMA FEMA.gov Jobs and careers | Veterans Affairs VA.gov Home | Veterans Affairs What Jobs Can You Get With a Finance Degree? | Careers | U.S. News U.S. News & World Report Careers University of Northern Colorado Navigating Opportunity: Career Information and Mobility in Low-Wage Employment American Enterprise Institute Trying to “Bring Back” Manufacturing Jobs Is a Fool’s Errand Cato Institute Careers | Career Opportunities West Virginia University Careers City of Phoenix (.gov) Careers City of Ontario, California (.gov) Careers at Prairie View A&M University PVAMU Home Employment at WKU Western Kentucky University Employment Opportunities at National Headquarters The Salvation Army USA Careers at J&J Johnson & Johnson Careers Career Paths FEMA.gov Careers | Home USDA (.gov) Careers and Jobs at CRS Catholic Relief Services Employment Opportunities Alabama Department of Public Health (.gov) Careers UC Santa Cruz Work at Fairfield Fairfield University Careers - MDOT Maryland.gov Careers Fred Hutchinson Cancer Center Working for ICE ice.gov So, Why’d You Leave That Job? The New York Times Careers at USCIS USCIS (.gov) Employment Opportunities | Game Commission Commonwealth of Pennsylvania (.gov) Careers Johnson & Johnson Store Hourly Job Areas Target Corporation Careers at TWU Texas Woman's University Work for Us (U.S. National Park Service) National Park Service (.gov) Work at Butler Butler University Jobs and Training at FDA fda.gov Explore Store Careers Target Corporation Domestic/Civil Service careers.state.gov How to change careers at 40 The Telegraph Employment | Department of Corrections Commonwealth of Pennsylvania (.gov) Work With Us National Oceanic and Atmospheric Administration (.gov) Careers at University of Missouri Health Care | University of Missouri Health Care jobs University of Missouri Health Care Careers at Simon & Schuster SimonandSchuster.biz Water Services Careers City of Phoenix (.gov) Career Opportunities Gilead Sciences Jobs City of Rochester (.gov) Career Opportunities UMHB How to Apply FEMA.gov Careers at Willamette Willamette University Full-time jobs for students Johnson & Johnson Careers Careers BASF Jobs at Liberty University Liberty University Careers Washington State University Careers at the IOC Olympics.com Employment Services for PhD Mathematicians American Mathematical Society Early Talent programmes AstraZeneca Healthcare Jobs at Novant Health | Novant Health Novant Health Future of Jobs Report 2025: The jobs of the future – and the skills you need to get them The World Economic Forum Careers and Employment Willamette University NASA Careers: Pathways NASA (.gov) Student internships at J&J Johnson & Johnson Careers Business Wire Careers & Jobs Business Wire Our Hiring Process Target Corporation Careers The Ocean Cleanup The Best Jobs in America in 2025 Money/ US News U.S. adds 228K jobs in March amidst market volatility: How investors should read the numbers Chase Bank Corporate Job Areas - Marketing & Digital Target Corporation KPMG Careers KPMG UF Health Careers UF Health Careers Store Leadership Job Areas Target Corporation Finding Your New Career at the City of Phoenix City of Phoenix (.gov) Ready for your next great job? ADP Careers Careers West Virginia Department of Education Job search KPMG Are you retiring or retired and searching for job? Here’s a guide on finding job after retirement The Economic Times Careers at Union Union College Jobs for Veterans and transitioning military VA Careers (.gov) The Gen X Career Meltdown The New York Times DOE Report Shows Clean Energy Jobs Grew at More Than Twice the Rate of Overall U.S. Employment Department of Energy (.gov) Early Careers | Students & Recent Graduates | BCG Careers Boston Consulting Group Work for the City of St. Louis City of St. Louis, MO (.gov) Current opportunities Turner & Townsend Interview Guide and Tips Target Corporation Job Opportunities Bellevue School District Microsoft mulls more job cuts, this time focused on managers and non-coders, not just low performers, sources say Business Insider Job Seekers Illinois Human Resources Gender pay gap in U.S. has narrowed slightly over 2 decades Pew Research Center RESTORING ACCOUNTABILITY TO POLICY-INFLUENCING POSITIONS WITHIN THE FEDERAL WORKFORCE The White House (.gov) Experienced Professionals | Careers | BCG Boston Consulting Group Explore BCG locations around the world Boston Consulting Group Postdoctoral Research Los Alamos National Laboratory (.gov) |
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