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Termination Done Right: The Legal Steps Most Businesses Skip

Day 23 of 31 Days of Better Workplaces — termination. It’s the part of the job nobody enjoys, and the part where the most legal mistakes are made. 

Getting termination wrong — even where the grounds for dismissal are completely valid — can convert a justified exit into an unfair dismissal or a general protections claim.

 

The steps most businesses skip

1. Providing a clear reason 

An employee being terminated has the right to know why. Not a vague statement about “business reasons” or “not being the right fit” — a specific, factual reason. If the termination is for performance or conduct, that reason should not be a surprise: it should have been communicated through a performance management process. 

2. Giving the opportunity to respond

Before a termination decision is finalised, the employee should be given an opportunity to respond to the reason. This doesn’t mean the decision changes — but the process requires that it’s offered. Skipping this step is one of the most common procedural failures in unfair dismissal cases.

3. Allowing a support person

Employees have the right to have a support person present in meetings where dismissal is being discussed. You don’t have to allow legal representation, but a trusted colleague or union representative is their right. Denying this, or failing to offer it, is a procedural risk.

4. Providing appropriate notice 

Termination requires the notice period specified in the contract or Award, or payment in lieu of notice. Not providing this is a breach of contract and an employment law violation.

5. Managing the final pay correctly

Final pay must be processed within a specific timeframe and must include all owed entitlements: outstanding wages, accrued annual leave, long service leave where applicable, and any other contractual entitlements. Errors in final pay are common and create additional legal exposure.

 

The documentation to have ready

Letter of termination, statement of the reason, final pay calculation, written record of the process followed.
Done properly, termination is clean, compliant, and defensible. Done carelessly, it creates exactly the kind of legal exposure you were trying to avoid.

 

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