Subscribe Now

Simply Enter Your Details To Find Out How
We Can Help Your Business


Ready to go on a Discovery?


To Book your Employee Metrics Lite session, please fill in the details below and we will be in contact.

Apply Now

Please fill up the fields below
Employee Matters Logo
Get in Touch Get in Touch (02) 8021 4206
  • HR Services
        • Outsourced HR
        • How We Work - HR
        • Employee Metrics - Data Diagnostics
        • Featured Industries:

        • Australian Startups
        • Finance, Insurance and FinTech
        • Featured Solutions:

        • HR Consulting
        • Workplace Training
        • HR Policies & Procedures
        • Employee Assistance Program (EAP)
        • Products and Packages

        • We deliver measurable results through great HR:

        • Hear What Our Clients Say
  • Recruitment Services
        • Outsourced Recruitment
        • Featured Solutions:

        • Tiered Recruitment Packages
        • Recruitment Partner Service (RPS)
        • Learn More:

        • Hiring Manager Training
        • Why Choose Us for Recruitment?
        • How We Work (RPS)

        • We’re not an agency, and our clients love that:

        • Hear What Our Clients Say
  • About Us
    • About Employee Matters
    • Meet the Team
    • What Our Clients Say
    • Core Values and Vision
  • Resources
        • The Latest:

        • News and Media
        • Blog Articles
        • Videos and Webinars
        • Featured Content:

        • ER Legislation Resource Hub
        • e-Book: 7 ER Risks for Employers
        • Downloads and Knowledge Hub:

        • HR Forms & Checklists
        • 'Working From Home' Pack
        • HR & Recruitment FAQ’s
        • Book: "From Hire to Fire"
        • From the Archives:

        • 'Employees Matter' Podcast
  • Jobs
  • Contact Us

Your Guide to Navigating Employee Terminations

09/02/2024

In this article, we’re delving into a topic that might make some business leaders break into a cold sweat – employee terminations. But don’t worry, we’ve got your back. This is your go-to guide for understanding the ins and outs of employee exits. Grab a comfy seat, and let’s jump right in!

The Basics

Terminations can happen for various reasons, and it’s crucial to know the ropes. Here are some common types:

  • By the Employee: When an employee decides it’s time to move on.
  • By Mutual Consent: Rare but amicable, where both parties agree to part ways.
  • Change to the Employment Contract: Changes in the business leading to substantial alterations in employee terms.
  • Express Terms: Termination based on agreed-upon terms, such as the end of a Fixed or Maximum-Term contract.
  • Death: A sombre scenario where the employment contract ends upon the death of the employee or employer.
  • Resignation (Voluntary): When an employee voluntarily resigns, they relinquish access to unfair dismissal laws.
  • Abandonment: A voluntary act by the employee, like abandoning their role, leading to potential legal consequences.
  • Constructive Dismissal: Situations where the termination is legally viewed as a “forced resignation.”

Legal Obligations

If you need help with any of the employee termination scenarios above, call or message us to discuss your challenges and learn how we can help. Now, let’s look specifically at one scenario: what happens when employees decide to leave, the obligations on them and any that may fall on the employer:

  • Providing Notice: Notice given by an employee must align with relevant contracts, agreements, awards or policies. In theory these can be enforced but often the employer will look at being compensated rather than forcing the employee to remain at work.
  • Repaying Benefits: Certain benefits tied to employment, like tuition fees, may need to be repaid depending on your policy or contract terms.
  • Fixed-Term Contracts: Resigning early without an early-termination clause might lead to potential damages for breach.

Be aware, what most of us think are Fixed-Term contracts are actually Maximum-Term contracts. Maximum-Term contracts have a termination clause built into them allowing for termination on notice.

Navigating Notice Periods

Modern Award Clauses

Awards generally have a clause allowing Employers to withhold wages if sufficient notice isn’t given, but not more than the equivalent of the notice period. It is a good idea that employment contracts also contain a similar clause to ensure this right exists for all employees.

Special Situations

Garden Leave

A contractual clause which means the Employee gets paid but doesn’t work during a notice period, preserving the contract terms. This is often used for senior employees, especially those heading to a competitor.

Payment in Lieu of Notice

Much more common than Garden Leave, where the employee agrees to terminate immediately, with the employer paying out the notice period.

It is often possible, especially with a well written termination clause in the employment contract, for employers to enforce pay in lieu, if they wish the resigning employee to leave immediately.

Abandonment

Where the employee simply ceases turning up to work and does not communicate it can be said the employee has ‘abandoned’ their employment.

However, to avoid unfair dismissal claims, a proper process to establish abandonment is required. This includes:

  • Attempting to contact the employee to establish a reason for the absence
  • Notifying the employee of the potential for the employment to be deemed as abandoned unless they make contact
  • Attempting to understand the situation
  • Giving notice of termination if the employee does not make contact
  • Terminating employment
  • Documenting with notes and communications, every step of this process

Termination by Mutual Consent: The Odd One Out

Sometimes it can be in both parties’ interest to end the employment, when things are just not working out. Rather than argue in the courts, it is often easier to part ways on agreed terms which waves the employees right to take legal action. The two most important pieces of advice when going down this path are:

  1. Get advice – reach out to us for expert help, and if we’re unable to help with the matter, we’ll do our best to refer you to one of our expert legal partners
  2. Use a Deed of Release – a legally drawn up agreement on the terms of the separation including waiving the rights to take legal action

Conclusion

Navigating employee terminations is often a balancing act – understanding the nuances, obligations and special situations is crucial. Always communicate clearly, document everything, and proceed with empathy. After all, your employees really do matter.

In this article, we’ve only delved into what happens when employees decide – but as above, there’s a myriad of scenarios resulting in employee terminations. If you need help with any of the employee termination scenarios above, or any other aspect of your HR/Recruitment, call or message us to discuss your challenges and learn how we can help:

Phone: +61 2 8021 4206

Contact Us
Tags: Policies, Employee management, Unfair dismissal, Terminations and exits
Contents
The Basics
Legal Obligations
Navigating Notice Periods
Modern Award Clauses
Special Situations
Garden Leave
Payment in Lieu of Notice
Abandonment
Termination by Mutual Consent: The Odd One Out
Conclusion

Latest News and Media

The Making of a CEO: Strategies for Success – Howse & Rivers

  • 12/09/2025
In a recent conversation with Adelle Howse from Howse & Rivers, Natasha Hawker shared the journey of starting and growing Employee Matters. While many see an "overnight success," the reality...
Read More

Building Stronger Businesses Through People: Natasha Hawker on the ScaleX Insider Podcast

  • 12/08/2025
“You don’t build a business — you build people and people build the business.” This was the central theme when Natasha Hawker, Founder of Employee Matters and leading expert in...
Read More

Experts Weigh In on Correct Hot-Desking Etiquette

  • 22/07/2025
Hot-desking is now common in many Australian workplaces, but not everyone knows the best way to share a desk. Natasha Hawker, managing director of HR and recruitment firm, Employee Matters,...
Read More

The Sick Tax: How to Tackle Presenteeism in Your Workplace

  • 03/06/2025
The Sick Tax in Australian Workplaces and Why ‘Presenteeism’ Is Costing Businesses Billions If you’ve ever felt guilty about calling in sick, you’re not alone. Natasha Hawker, founder of Employee...
Read More

High Paying Jobs You DON’T Need A Degree For

  • 20/05/2025
A university degree has long been seen as the primary path to a high salary, but with the evolving job market, many Australians are discovering alternative routes to rewarding careers....
Read More

Should you speak up if you see bad behaviour at work?

  • 06/05/2025
Speaking Up at Work: What Should You Do When You Witness Unethical Behaviour? Workplace conflict is inevitable, but how it’s managed—or ignored—can make all the difference to employee wellbeing, team...
Read More

Tactic linking promotions to being in office completely divides Aussie workers

  • 27/04/2025
Promotions Now Tied to Office Attendance? The Return-to-Office Push Divides Aussie Workers A growing number of Australian employers are finding new ways to encourage staff back into the office —...
Read More

Aussie bosses shamed as ‘ghosting’ trend leaves workers in the dark

  • 06/03/2025
The hiring process is under scrutiny as job seekers take a stand against being "ghosted" by potential employers. An increasing number of candidates are speaking out about the frustration of...
Read More

Latest Blog Articles

Why AI Can’t and Won’t Replace In-House HR

  • 06/10/2025
The Human Element in Australian Workplaces In the business world, the incessant buzz around Artificial Intelligence (AI) is louder than ever. We've seen how AI can streamline repetitive, tedious tasks...
Read More

The Hidden Cost of Sexual Harassment

  • 06/10/2025
While sexual harassment is a profound violation of an individual's rights and wellbeing, its impact extends far beyond the personal harm to the victim; it carries a significant and often...
Read More

The Benefits of Local Know-How in HR

  • 30/09/2025
We’ve been helping organisations across Australia with HR and Recruitment for well over a decade now, and if there’s one thing we’ve learned, it’s that not only are no two...
Read More

How HR Consultants Can Help Startups With Workplace Policies

  • 25/09/2025
For startups, the focus is often on growth: securing funding, building products, and winning customers. But one area that can easily slip through the cracks is HR compliance, let alone...
Read More

Paws and Peace of Mind: How Pets Help Us Navigate Psychosocial Hazards

  • 19/09/2025
The world collectively held its breath during the COVID-19 pandemic. As social isolation became the norm and our homes transformed into our workplaces, many of us found an even deeper...
Read More

Navigating Australia’s New WHS Landscape: The Importance of Minimising Psychosocial Hazards

  • 19/09/2025
Once upon a time, workplace safety predominantly conjured images of hard hats and safety boots, focusing solely on physical dangers like slips, trips and falls. However, a significant shift has...
Read More

Recruiting for Behavioural Traits

  • 19/08/2025
Tertiary qualifications?  Check Demonstrated experience?  Check  Skilled in a specific IT platform? Check  But how can you screen for passion, flair and determination? Recruiting for Behavioural Traits Is an Art...
Read More

AI in Recruitment: The Employer’s Ally (and what to watch out for)

  • 19/08/2025
In today's fast-paced business world, finding the right talent in an ever tight market isn't just a challenge – it's a race. Employers are constantly seeking an edge and increasingly,...
Read More

(02) 8021 4206
  • About Us
    • About Employee Matters
    • Book a Free Call
    • What Our Clients Say
  • Services
    • Outsourced HR Services
    • Outsourced Recruitment
    • Recruitment Partner Service (RPS)
  • Resources
    • News and Media
    • Forms & Checklists
    • Blog
  • News and Media
  • Blog
  • Contact Us

Employee Matters helps businesses in Sydney, Melbourne, Perth, Brisbane, and across all major Australian towns and cities with their HR and Recruitment needs.

Copyright | Employee Matters
Terms + Conditions | Privacy Policy
Design by Five by Five
Download Infographic: Workplace Sexual Harassment is Bad for Business

Workplace sexual harassment isn’t just a moral issue—it’s a costly business risk. Enter your details below to see the evidence behind its financial and organisational impact:


Australian ER Legislation Compliance Calculator

Working From Home Pack

The pack includes:

  • Comprehensive Employer Guide to Employees Working From Home
  • Comprehensive Employee Guide to Working From Home
  • Working From Home Policy
  • WH&S Working From Home Audit Checklist

Fill out the form below to access it.


Assess Your HR & Recruitment Practices

This self-assessment checklist helps you evaluate your current HR and recruitment practices and kickstart internal conversations about your future strategy. Fill out the form below to access it.


Psychosocial Hazards in the Workplace – The Facts You Need to Know

See why psychosocial hazards are among the fastest-growing challenges for employers. Enter your details below to access a snapshot of their rising financial and human impact in Australian workplaces.:


Get In Touch

Call us on (02) 8021 4206 or use the form below to tell us about your requirements and we’ll be in touch to guide you on which Employee Matters services are best for you:


Book a Free Call

We’re Here to Help!

Call us on 02 8021 4206 – email info@employeematters.com.au – or complete the form below to book a time that suits you:


HR Kickstart


What Matters

Subscribe to our newsletter ‘What Matters’ to stay up to date with all the latest news, useful downloadable assets and exclusive offers: