ARTICLE · 23 MARCH 2026

Managing employee terminations legally: A step-by-step process for employers

Watkins Tapsell

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How to terminate an employee legally whilst protecting your organisation from claims.

AustraliaEmployment and HR

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Getting the employee termination process in Australia wrong can cost your business significantly. Unfair dismissal claims lodged with the Fair Work Commission averaged $10,500 in compensation in 2024, not counting legal fees or reputational damage. Here's how to terminate an employee legally whilst protecting your organisation from claims.

Key Requirements:

Establish a valid reason (performance, conduct, redundancy, or capacity)
Follow procedural fairness – provide warnings and opportunity to respond
Meet notice period requirements in Australia based on length of service
Document every step of the process thoroughly
Comply with Fair Work Act 2009 and relevant awards or enterprise agreements

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