Ending employment

Any of your employees has the right to resign at any time. However, your workplace agreement or internal policy may state how employees give notice, such as in writing, and a minimum amount of warning.
 
When an employee leaves, you must calculate remaining entitlements, such as annual leave, according to your workplace agreements. Learn more here.

You may find that your business changes and needs different structures, especially if you expand, downsize or move into new or additional business premises.
 
Restructuring your business operations may change the workforce you need. New technology may also cause workforce changes.
 
When the work performed by an employee is no longer necessary due these to changes a job becomes ‘redundant’. Depending on your employee's length of service and the award, agreement or contract they are on, the employee in that job may be entitled to redundancy benefits.
 
The Fair Work Ombudsman provides more information about redundancy.

You must have a valid reason to dismiss an employee – either the employee’s poor performance or conduct, or a significant change to your business requirements.
 
There are processes you must follow to dismiss an employee, to avoid any legal problems.
 
If the reason is poor performance or misconduct, you should have evidence that you have followed necessary processes, such as providing coaching to address poor performance.
 
The manner in which you dismiss an employee and communicate the decision within your business will have an impact on your business culture and your reputation as a ‘good employer’.
 
Read more about dismissing employees fairly. The Fair Work Ombudsman also has information about ending employment, and there is specific legislation for small businesses with fewer than 15 employees – the Small Business Fair Dismissal Code.