Standard termination entitlements
Notice must be provided when terminating employment.
When an employee's employment is terminated for any reason except serious misconduct, the employer must provide the employee with:
- appropriate notice periods (as outlined below);
- subject to certain conditions, up to one day's paid time off work during each week of the notice period to search for other employment if the employee is full time or part time; and
- any leave entitlements owing.
Employers must also provide all terminated employees, upon the employee's request, with a written statement specifying the period of employment and the classification or type of work performed.
Notice requirements
All Western Australian full time and part time employees are entitled to the notice provisions made by the federal Fair Work Act 2009, as follows:
- For employees with continuous service of not more than one year the notice period is one week
- For employees with continuous service of more than one year but not more than three years the notice period is two weeks
- For employees with continuous service of more than three years but not more than five years the notice period is three weeks
- For employees with continuous service of more than five years the notice period is four weeks
Employees over 45 years of age with two completed years' continuous service are entitled to an additional weeks' notice. If an award, a contract of employment or an agreement contains a longer notice period the longer period will apply.
Casual employees must receive the amount of notice specified in their award or agreement, (often 1 hour) or other reasonable notice.
Employers may choose to provide payment in lieu of notice. The payment must equal or exceed the total amount of monies that should have been paid had the employment continued until the end of the required notice period.
If employees are not provided with the notice periods required by the Fair Work Act 2009, this may be an unlawful termination.
Leave
Any accrued annual leave and long service leave entitlements must also be paid out on termination. Pro-rata long service leave may also be payable on termination based on the number of years of service.
Misconduct and summary dismissal
Dismissal without notice is called a summary dismissal. Employers may not have to provide notice when terminating an employee for serious misconduct. The misconduct must be so incompatible with an employee's obligations to an employer that complete disregard for the employment relationship has been demonstrated.
This could include conduct such as:
- causing an immediate serious safety or health risk, including being intoxicated or taking drugs in the workplace, or
- deliberate behaviour that is inconsistent with the continuation of the employment such as serious theft or fraud, or that causes imminent or serious risk to the reputation, viability or profitability of the business.
Further information
For further information on notice and standard termination requirements call Wageline on 1300 655 266.