- Country Information
- Australia
In this article...
Australia
- Introducing PEO in Australia
- What types of employment contract are there in Australia?
- What mandatory clauses must be included in an Australian employment contract?
- How do you amend an employment contract in Australia?
- What makes a contract invalid in Australia?
- What are the minimum employee entitlements in Australia?
- What are the mandatory benefits in Australia?
- Is private health insurance available in Australia?
- Can employees receive stock options in Australia?
- Are there any other benefits available to employees in Australia?
- What is the minimum wage in Australia?
- What is the standard work week in Australia?
- What are the statutory public holidays in Australia?
- What are the overtime rules in Australia?
- What are the standard leave policies in Australia?
- Are alternative work arrangements possible in Australia?
- What is the required documentation for onboarding in Australia?
- How do you register an employee in Australia?
- What are the contract signing requirements in Australia?
- Can companies implement their own onboarding in Australia?
- What rules concern the base salary in Australia?
- How are bonuses and commissions handled in Australia?
- How are allowances handled in Australia?
- How is individual income tax handled in Australia?
- What are some other payroll considerations in Australia?
- How are expenses handled in Australia?
- Who makes the decision to terminate an employment contract in Australia?
- What is the procedure to terminate an employment contract in Australia?
- How are final pay and accrued leave handled in Australia?
- How is severance pay handled in Australia?
Who makes the decision to terminate an employment contract in Australia?
In Australia, employers may terminate employees in any employment category, even full-time, open-ended contracts.
Note that employees are due severance pay when dismissed due to redundancy. In addition, employees must also receive notice or payment in lieu of notice.
Notice of termination and redundancy pay forms part of the National Employment Standards (NES). Employees may be dismissed for reasons that include redundancy, poor performance, misconduct, or bankruptcy. In the case of an employee’s serious misconduct, a notice period and severance pay are not required.
In all cases, employers in Australia must provide employees with written notice stating the day of employment termination. The customary notice period is 30 days, though the official required notice periods are as follows:
- Employees with less than one year of service receive one week of notice
- Employees with one to three years of service receive two weeks of notice
- Employees with three to five years of service receive three weeks of notice
- Employees with more than five years of service receive four weeks of notice
If you have questions about terminating employment contracts in Australia, please get in touch with our team today!
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