Let’s be honest: terminating an employee’s employment is one of the most daunting responsibilities a leader can face. The emotional weight, the fear of confrontation, and the risk of legal challenges all converge to create an experience that most would prefer to avoid. Yet, there are times when dismissing an employee becomes a necessary step for the health and future of the organisation.
By following professional practices and approaching the process with empathy and fairness, managers can turn an uncomfortable situation into one that is respectful and compliant with workplace laws.
In this blog post, we’ll explore how to prepare for dismissals, conduct them professionally, and offer practical tips for ensuring both employer and employee can move forward with dignity.
The groundwork for any termination begins long before the actual conversation. Employers should have robust, clear policies and procedures governing performance management, conduct, and termination. Not only does this outline expectations for employees, but it also provides much-needed guidance for managers when difficult decisions arise.
Having well-documented disciplinary policies and procedures helps ensure that the dismissal process is fair, transparent, and legally defensible. To protect themselves from unfair dismissal or other claims employers must be able to demonstrate a valid reason for dismissal, backed by evidence of due process and procedural fairness.
If a claim arises—such as unfair dismissal or breach of contract—thorough records and consistency in following established procedures are your best protection.
Tips: Develop and maintain clear policies and document everything
Under the National Employment Standards (NES), employees must receive written notice of termination. The NES also set out minimum notice periods (though contracts or enterprise agreements may specify longer periods). Notice is not required where an employee is being dismissed for serious misconduct.
Employers have two options: allow the employee to work out their notice period, or pay the notice in lieu, ending the employment immediately. The choice depends on circumstances, such as whether trust has broken down due to misconduct.
A thoughtful approach to the termination meeting can make a world of difference. Choose a private, neutral location and a time where interruptions are unlikely. Ideally, the meeting should be held mid-week, and not right before holidays or weekends, so the employee has time to seek support or advice.
Whenever possible, dismissals should be done in person rather than by phone or email. Having a witness present is advisable for both parties, and employees should be encouraged to bring a support person.
A fair process requires that an employee has a chance to respond to any reason for dismissal before a final decision is made.
A well-crafted letter of termination provides clarity and closure. It should use clear, formal language and include the following relevant details:
There’s no universal “right” time but aim for a time that minimises disruption for both parties. If possible, early to mid-week, in the afternoon but not at the end of the day, typically works best. Unless the employee’s conduct requires an immediate disciplinary response, it is usually best to avoid dismissing employees right before holidays, annual leave, or personal milestones.
No termination will ever be easy, but by planning carefully, following procedure, and leading with empathy, managers can navigate the process with confidence and compassion. Providing clarity, respect, and support helps ensure a smoother transition for everyone involved—and protects your business in the process.
Firing an employee may be daunting, but with the right approach, it’s possible to manage this responsibility ethically and thoughtfully, while minimising the risk of claims.
Australian Industry Group's recently updated Managing Termination of Employment Handbook is a comprehensive and practical guide designed to assist employers avoid expensive claims dealing with dismissal from employment, through practical advice and case examples.
The Handbook includes an overview of the national unfair dismissal regime, analyses relevant case law, provides and easy to follow step-by-step process to manage poor performance and misconduct, sample documentation and much more!
Visit our online shop for more information and to purchase your copy today!
For assistance with your workplace matters, Members of Australian Industry Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information.
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Clinton is the Publications Manager at the Australian Industry Group.
He is responsible for a number of key services including Annotated Modern Awards, Workplace Relations Handbooks and the management of Ai Group’s HR and Health & Safety Resource Centres.
Clinton has a master's in Employment Relations and previously held advisory roles with the Workplace Authority and Department of Employment and Workplace Relations.
