Everyone
Dismissal
An employer can dismiss an employee for a variety of reasons – such as misconduct, poor performance, or redundancy – but must follow a fair and proper process.
Employee and employer responsibilities
| If you're an employee | If you're an employer |
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You cannot be When an employer removes an employee from their job, for example, as a result of misconduct or redundancy. |
When dismissing an employee, you must follow a fair and proper process. |
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You must be given the notice stated in your A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. When an employee’s behaviour has undermined or destroyed their employer’s trust in them and impacted the employee’s ability to do their job. Usually, the employee has acted deliberately or so carelessly that it amounts to serious misconduct. |
You must also have good reason for the dismissal. |
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If you believe you have been dismissed unfairly, you can raise a An action that an employee can take against a current or former employer when they have an employment issue they cannot resolve. |
You must give notice according to the provisions of the employment agreement. You can, however, dismiss an employee for proven serious misconduct without giving notice or making payment for the The amount of time between giving notice and the date the employment relationship ends. |
Dismissal
In most cases, if an employer wants to dismiss an employee (end their employment), they must:
- act in
good faith An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way.
- have a good reason
- follow a fair and reasonable process, and
- have an open mind when dealing with problems so that outcomes are not pre-determined.
If the employer does not take these steps, the employee may be able to raise a An action that an employee can take against a current or former employer when they have an employment issue they cannot resolve.
There are different rules for employees who earn $200,000 or more a year. For more information:
Reasons for dismissing an employee
The following are reasons why an employer may want to dismiss an employee:
serious misconduct When an employee’s behaviour has undermined or destroyed their employer’s trust in them and impacted the employee’s ability to do their job. Usually, the employee has acted deliberately or so carelessly that it amounts to serious misconduct.
- repeated
misconduct When an employee does something wrong through their actions or inaction, or their general behaviour. It can be at 2 different levels: misconduct and serious misconduct.
- performance issues
- during a trial period
redundancy When an employee’s employment is terminated because their position has become surplus to the requirements of the business. Employers must follow a proper and fair process and consider redeployment options before making any positions redundant.
- health issues.
Dismissal outside of a trial period
If an Any person, whatever their age, who is employed by an employer to do any work for hire or reward under a ‘contract of service’ (commonly called an ‘employment agreement’). An individual or organisation that hires 1 or more employees and contracts them to work in exchange for wages or salary under a ‘contract of service’ (commonly called an ‘employment agreement’). When an employer removes an employee from their job, for example, as a result of misconduct or redundancy.
The employer needs to respond in writing within 14 days of the request being made.
Dismissal during a trial period or who earns $200,000 or more
If an employee is dismissed during a valid trial period or earns $200,000 or more a year (and have not contracted back in), the employer:
- may, in good faith, provide a reason for the dismissal but does not have to
- can give their reasons verbally at the time of dismissal, instead of in writing.
Fair process when dismissing an employee
There are fair process standards an employer must follow if they want to dismiss an employee who is not on a trial period or earns under $200,000 a year.
If dismissal is being contemplated, there are steps an employer should follow for:
- performance issues
misconduct .When an employee does something wrong through their actions or inaction, or their general behaviour. It can be at 2 different levels: misconduct and serious misconduct.
There are different rules for employees who earn $200,000 or more a year. See:
Notice period
Unless an employee is being dismissed for When an employee’s behaviour has undermined or destroyed their employer’s trust in them and impacted the employee’s ability to do their job. Usually, the employee has acted deliberately or so carelessly that it amounts to serious misconduct. A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.
Summary dismissal
Sometimes, in situations of serious misconduct, an employer may be able to dismiss an employee without:
- giving them any notice, or
- any payment instead of notice.
In this instance, the employee has to leave work right away and is not paid for any notice period or part of notice period. The employee is still entitled to any statutory payment they are owed in their The last pay an employee receives from their employer. This includes their final salary or wages, all holiday pay they are entitled to, and any other payments owing. Paid time away from work for rest and recreation.
Constructive dismissal
If an employee feels they had no choice but to When an employee tells their employer they will be leaving their job. When an employee feels they have no choice but to resign. An action that an employee can take against a current or former employer when they have an employment issue they cannot resolve.
Constructive dismissal is a type of unjustified dismissal.
There are different rules for employees who earn $200,000 a year. See:
Employees who earn $200,000 or more a year
Other links you might find useful
Employment Relations Authority(external link)
Sample letters for dismissing an employee
These are sample letters that employers may find useful should they decide to dismiss an employee. These letters deal with different circumstances:
Employee earns $200,000 or more a year
If an employee who is dismissed earns $200,000 or more a year, they do not have certain dismissal protections.
This means the employer does not have to:
- follow the fair process standards
- have a good reason for dismissal, and
- comply with the good faith obligation to:
- give the employee information about the decision, including the reason for dismissal
- give the employee an opportunity to comment before making their decision.
It also means that if the employee feels like they have been unfairly dismissed, they can only raise a personal grievance in some circumstances.
The employer must give the employee being dismissed the notice stated in the employment agreement.
Contracting back in to dismissal protections
To contract back in to dismissal protections, the employer and employee must agree in writing as a term of employment that the termination and personal grievance provision relating to the annual remuneration threshold does not apply.
If the employer and employee agree to contract back in, the dismissal protections will apply to the employee, including:
- the employer must follow the fair process standards
- the employer must have a good reason for dismissal
- the employer will comply with all good faith obligations when they make a decision to dismiss the employee
- the employee can raise a personal grievance for unjustified dismissal or unjustified disadvantage relating to a dismissal, and
- the employee can ask for written reasons for the dismissal within 60 days, and the employer must reply in writing within 14 days.