Many employees have filed for unfair dismissal because of the way their employer handled their termination. It also does not help if you’ve terminated an employee on the grounds of misconduct but lack proper documentation or had deficiencies in the termination process.
It’s essential to have a clear and detailed policy for terminating employees on the grounds of poor performance, poor attendance, or bad attitude. Regardless if you’re firing an employee or making them redundant, you should always follow the mandated processes. That is the only way to manage a termination correctly and prevent any filed cases of unfair dismissal.
To better elaborate on what needs to be done in the termination process, there are some things you have to remember when dismissing an employee.
How to Properly Terminate an Employee
The termination should follow the correct procedures, or else a case for unfair dismissal may be filed. To ensure you are correctly following law-mandated guidelines, here are some things to remember:
1. Always terminate lawfully. Ensure that the dismissal isn’t in breach of contract, discrimination, equal opportunity, and other legislation. It should also be compliant with any agreements and awards that cover the employee.
2. Provide a clear and valid reason for the termination. If the employee finds that the termination isn’t following their contract or legislative protection, they can take legal action. They can file for unfair dismissal or sue for breach of contract.
3. Be sure to abide by the provisions of the legislation that cover your employees’ rights.
4. State who initiated the termination in writing, as well as the date and reasons for termination. It must be clear to both parties.
5. Provide employees with final payment, including payment for their accrued entitlements. That includes untaken annual and long service leave required by legislation.
6. Comply with notice periods mandated by legislation, contract, or awards, whichever is most generous. That applies to both the employer and the employee. For instance, a resigning employee must render the required notice period, and a dismissed or retrenched employee must receive the minimum notice period mandated by law.
7. Collect any employer property issued to the employee, including mobile phones, business cards, credit cards, security cards, product samples, uniforms, and vehicles.
8. Meet all required documentation, such as payroll records, statements of termination entitlements and calculations, and certificates of service.
9. Put everything in writing to have a detailed record of the termination process. Ask a resigning or retiring employee to confirm their resignation or retirement in writing, or you may issue a letter confirming that you accept the verbal resignation.
If you dismiss an employee, it’s also essential that you issue a letter confirming the dismissal. It’s also best to briefly explain to the employee, in writing, the reasons for the termination. If events led to the dismissal, keep clear records of those, too.
It’s an absolute need to have proper documentation of the termination process and explain to the employee the reasons behind the termination. The only way you can avoid an employee filing a case for unfair dismissal is if the termination process strictly follows the mandated laws and regulations for dismissal.
Springfield Legals is a team of solicitors who are experts in family law, property and business conveyancing, income protection, and unfair dismissal cases. We have been offering quality legal service in Springfield and the broader Ipswich region since 1999. We proudly state that the success of our firm is built on providing tailored legal advice from individuals through to large corporations. If you need quality legal advice in Springfield and nearby areas, get in touch with us today!