HR09-9-0 Termination of the Employment Relationship Overview
1. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 1
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
9.0 Termination of the Employment Relationship Overview
9.0.1 Purpose
This section outlines the different types of termination of the employment relationship.
9.0.2 Scope
This applies to all Catholic Mission employees.
9.0.3 Related Documents
• Fair Work Act 2009
• Anti-discrimination legislation
• Letter of Appointment
• HR09-9.0 Termination of the Employment Relationship Overview
• HR09-9.1 Termination by Contractual Provision being Fulfilled
• HR09-9.2 Termination by Resignation made by Employee
• HR09-9.3 Termination Resulting from Unsatisfactory Performance or Misconduct
• HR09-9.3.1 Managing Misconduct
• HR09-9.4 Termination as a Consequence of Other Events
• HR09-9.5 Termination as a Result of the Position being made Redundant
• HR09-9.6 Exit Survey (online) and Hand Over Interview
• HR09-9.7 Processing of Final Pay
• HR09-9.8 Recovery of Catholic Mission Property
• HR05-5.2 Managing Unsatisfactory Performance
• Form HR03 Termination Action Form (TAF)
• FormHR24 Catholic Mission Exit Survey (online)
• Form HR25 Termination of Employment Checklist
• Form HR28 Deed of Separation
• Form IT01 New & Exit User IT Request Form
9.0.4 Definitions
9.0.4.1 Termination of Employment
Termination of employment is the voluntary or involuntary bringing to an end of the employment
relationship.
There are many ways to end an employment contract. Some are initiated by the employee and
others by the employer.
Regardless of who initiates the termination, legislation sets out the process that needs to be
followed and outlines the rights and responsibilities of all parties involved.
9.0.4.2 Supervisor
The Supervisor is a Line Manager, Director or National Director who is responsible for the day-to-day
supervision of workers.
2. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 2
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
9.0.5 Responsibilities
9.0.5.1 Supervisors
Supervisors are required to:
a) Ensure that a Form HR3: Termination Action Form (TAF) is completed and duly signed and
submitted to the HR Director along with any associated documentation (eg. Resignation letter)
within a day of termination being advised.
b) Notify the HR Director when considering a termination of employment related to
underperformance or misconduct or if consideration is being given to making positions
redundant.
c) Observe applicable legislation when processing a termination of employment.
d) Ensuring an appropriate ‘hand over’ is made with regards to the position.
e) Ensuring all Catholic Mission goods and materials are returned to Catholic Mission prior to
leaving the organisation.
f) Ensure that Form IT01 New & Exit User IT Request is completed and submitted to Catholic
Mission’s IT provider.
g) Ensure that Form HR25 Termination of Employment Checklist is completed and submitted to the
HR Director at least 3 days prior to termination date.
9.0.5.2 HR Director
The HR Director is responsible for:
a) Providing advice on the process to be followed for termination of employment.
b) Obtaining legal advice in relation to termination of employment (if warranted).
c) Preparing the documentation required for the departing employee including but not limited to:
• Statement of Service Letter
• Deed of Separation
• Termination Payout Letter
d) Liaising with the Financial Controller in respect of the documents identified in (c) above.
e) Giving the ‘green light’ to the Financial Controller to release termination pay out only after the
following documents have been received:
a. Deed of Separation has been returned to Catholic Mission duly signed by the
employee.
b. A signed Form HR25 Termination of Employment Checklist is received from the
Supervisor (line manager).
f) Completing the portion of Form HR25 Termination of Employment Checklist relating to HR
Director.
9.0.5.3 Financial Controller
The Financial Controller is responsible for:
a) Preparing the termination payout calculations.
b) Inserting the payout calculations into the following documents:
• Deed of Separation
• Termination Payout Letter
c) Checking the dates in the Statement of Service Letter.
d) Completing the portion of Form HR25 Termination of Employment Checklist relating to Financial
Controller.
e) Making the final payment to the departing employee.
3. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 3
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
9.0.6 Ending the Employment Relationship
Generally, the employment relationship will end in one of six ways:
9.0.6.1 By Contractual Arrangement
1. Termination by a contractual provision being fulfilled, that is, an employee employed for a
specified period and that specified period comes to an end.
o Refer to HR9.1 Termination by a Contractual Provision being Fulfilled
9.0.6.2 By an Employee
2. Resignation made by the employee.
o Refer to HR9.2 Resignation Made by an Employee.
9.0.6.3 By an Employer
3. Breach of contract which may result in summary dismissal by the employer.
o Refer to HR9.3 Termination Resulting from Underperformance or Misconduct.
4. Termination by notice (under the Fair Work Act 2009 or other contractual provision) given by an
employer when the decision has been taken to dismiss an employee.
o Refer to HR9.3 Termination Resulting from Unsatisfactory Performance or Misconduct.
5. Termination as a consequence of other events (eg. abandonment, death of the employee, closure
of the business, etc.)
o Refer to HR9.4 Termination as a Consequence of Other Events
6. Retrenchment as a result of the position being made redundant due to a change in the business
situation (eg. technological change which may involve retrenchment of a number of employees).
o Refer to HR9.5 Retrenchment due to Position being made Redundant
9.0.7 Records to be Kept
The following should be kept in the employee’s hard copy file or e-digital folder in a secure location.
Access to these documents is by permission of the HR Director or National Director.
a) Warning letters
b) Acknowledgement Letter advising termination payout
c) Form HR03 Termination Action Form (TAF)
d) Form HR25 Termination of Employment Checklist
e) Form HR25 Exit Interview
f) Hand Over Task / Activity List
g) Diary notes
Records are to be retained in accordance with the relevant state or commonwealth legislation.
9.0.8 Exit Survey and Hand Over Interview
An exit survey/interview should be obtained in every instance of a resignation.
Refer to HR9.6 Exit Survey (online) and Hand Over Interview for more details.
4. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 4
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
9.0.9 Matters to be considered before Terminating Employment
For an employer, the risks arising from failure to terminate an employment relationship in an
appropriate manner include:
• Unfair dismissal or unlawful termination claims under the Fair Work Act.
• Adverse action claims.
• Penalties for breaching employer obligations set by agreements / legislation.
• Discrimination claims.
If successful, such claims can lead to orders for substantial compensation payments, or
reinstatement of the employee. Such proceedings can also impact adversely on the morale of other
employees.
The most obvious risk arising from the dismissal of an employee is that an application may be made
to the federal or relevant state industrial commission on the grounds that the dismissal was unfair
and / or unlawful.
These matters are explained more fully below:
9.0.9.1 Anti-Discrimination Legislation
Anti-discrimination legislation exists at federal and state levels in all states and territories. Where an
employee is dismissed from employment and the dismissal is based, or even partially based on one
of the prohibited grounds of discrimination, an employee will have access to the remedies available
under anti-discrimination legislation (that is, unlawful termination).
9.0.9.2 Unlawful termination
Generally, a dismissal is unlawful if it occurs for one of the following reasons:
a) Temporary absence from work due to illness or injury (where temporary is usually taken to be six
months).
b) Filing of a complaint or participating in proceedings against the employer.
c) On grounds of race, colour, sex, sexual preference, age, physical or mental disability, marital
status, family responsibilities, pregnancy, religion, etc.. Note: An exemption may apply if the
reason is based on the inherent requirements of the role, or to avoid injury to religious
sensitivities.
d) Absence from work during parental leave.
e) Trade union membership or activity (or non-membership of a trade union).
f) Acting as a representative of employees.
9.0.9.3 Summary Dismissal
Summary dismissal refers to dismissal immediately without the usual notice of termination. This
usually follows an investigation of serious misconduct.
Advice from HR and / or from a solicitor specialising in dismissal should be sought when summary
dismissal of an employee is being considered.
5. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 5
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
Summary dismissal is a drastic step to take, and Catholic Mission may only summarily dismiss an
employee for conduct that is serious and wilful. The misconduct must be so serious as to amount to
a rejection on repudiation by the employer of the obligations contained in the employee’s Letter of
Appointment (that is, contract of employment), thus rendering null and void.
Refer to HR09-9.3.1 Managing Misconduct.
9.0.9.4 Unfair Dismissal
A dismissal is unfair if it is harsh, unjust, oppressive or unreasonable. Generally, a tribunal will
consider both how and why the dismissal occurred:
a) Whether there was a valid reason for the termination related to the capacity or conduct of the
employee, or the employer’s operational requirements.
b) Whether the employee was notified of that reason and given the chance to respond.
c) If the termination related to unsatisfactory performance or misconduct.
d) Whether the employee had been warned and given an opportunity to improve the performance
or correct the behaviour.
e) Other relevant matters.
Refer to:
• HR09-9.3.1 Managing Misconduct.
• HR05-5.2 Managing Unsatisfactory Performance
9.0.9.5 Constructive Dismissal
Constructive dismissal is when it can be shown that an employer’s conduct, behaviour or actions
brought on the employee’s decision to leave/resign. In other words, something the employee did (or
failed to do) left the employee with no other option but to leave. The onus of proof is on the
employee.
9.0.9.6 Adverse Action
Unlawful adverse action is action taken for one of the following reasons:
a) The worker has a work place right; that is, he/she is entitled to a benefit or entitled to make a
complaint under a work place instrument or work place law.
b) The worker is not, or is a member / officer of a union.
c) The worker has engaged or proposes to engage in industrial activity (for example, a strike).
d) A discriminatory reason (for example, because of the worker’s age or pregnancy).
The Fair Work Act also contains several related offences such as the prohibition on coercing people
to not exercise a work place right.
To avoid the risk of an adverse action claim, Supervisors should ensure that they act fairly and
reasonably when dealing with disciplinary matters, transfers, demotions and alterations to the terms
and conditions of employment. All disciplinary action should be initiated on a bona fide basis and in
accordance with any procedural rules, and not in response to a worker exercising a work place or
industrial right.
6. HR09 Termination/HR09-9.0 Termination of the Employment Relationship Overview Page 6
HR Policies, Guidelines, Procedures & Forms
Authorised by National Director
2015Feb6
Supervisors should also ensue that appropriate processes are in place to defend any adverse action
claims by workers. All documentation relating to the worker must contain adequate detail and be
reproducible if it is to be used as evidence in support of an employer’s decision if a claim for adverse
action is made.
Adverse action claims can be commenced within six years of the event.
9.0.9.7 Employees Exempt from Dismissal Remedies
In the various jurisdictions, certain types of employees are excluded from bringing unfair dismissal or
unlawful termination claims in respect of their termination. Although the exclusions vary between
jurisdictions, the main categories are:
a) Employees in the first six months of employment (minimum employment period).
b) Casual employees (conditions apply).
c) Fixed term employees.
9.0.9.8 First Six Months of Employment
Employees dismissed during the first six months of their employment (known as probation or as the
minimum employment period) cannot make an unfair dismissal claim. That is, regardless of the
length of the probation period, an employee cannot make an unfair dismissal claim under the Fair
Work Act within six months of commencing employment.
9.0.9.9 Casual Employees
Casual employees engaged for less than 12 months are generally excluded from bringing unfair
dismissal claims.