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Who can use this resource
This checklist can be used by all employers throughout Australia, except the following excluded employers:
- Non-constitutional corporation employers in Western Australia;
- State public sector employees (ie employees of a Minister, the Governor or the Crown); and
- Local Government employers — except in Tasmania.
Excluded employers may however, wish to use this document, but they should first obtain legal advice..
Commentary
There are several considerations for a business when an employee decides to leave through resignation. Some of these include the accurate calculation of employee payout entitlements, the notification to parties affected by the resignation, and arrangements for the return of all business property. This checklist aims to guide employers through the key considerations surrounding resignation of employees.
In terms of termination payments, employers should check that they have not over-calculated the entitlements owed before presenting such information to their employees. In some circumstances, employers may be bound to pay the additional amounts detailed in any termination summary, despite the fact a miscalculation has occurred. Likewise, if an employer has under-calculated the entitlements owed, it may be in breach of a relevant industrial instrument or applicable legislation, which may lead to a financial penalty, damages and/or interest on the unpaid entitlements, being imposed.
Calculations are often quite complex, particularly for long-serving employees, so it is recommended that employers check such calculations thoroughly. If an employer is unsure of the correct entitlements to offer or pay, or the relevant taxation treatment for each component, they should seek relevant legal, financial and/or taxation advice.
It is also advisable to seek legal advice before agreeing to an employee’s request for a written reference. Legal action can arise if the reference an employer provides is not a true reflection of the employee’s employment with the business and a future employer employs the former employee relying on that reference. Likewise, any reference an employer provides should not be defamatory.
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Important note to subscribers
The commentaries and documents in HR Advance are updated as necessary, to keep them relevant. You should familiarise yourself with the relevant commentary each time you create a document.
This document has been drafted to suit a wide variety of businesses, with a number of options available to enable you to customise the document to better suit your business. Nevertheless, you may need to make other changes to the document so that it suits the specific needs of your business. If you make additional changes, we cannot guarantee that the changes and modifications you make to the document will be legally compliant or enforceable.
This commentary and any additional information provided to assist you in creating this document, does not constitute legal advice.
If you are unsure about any aspect of this document (including the changes or amendments you make to it), you should seek appropriate advice from a lawyer, skilled in these issues. You should consult with your financial advisor in relation to any relevant taxation or financial issues concerning the document you create.
After creating this document, you should read through it carefully to make sure it meets your business needs and is consistent with other industrial instruments, policies and procedures which operate in your workplace. This commentary is not designed to be provided to employees or other workplace participants. |
Further information
Further information on how to use this document can be found at the 'How to use checklists' link on the Checklists page of the HR Advance website.
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