Everyone
Dismissal
Learn about the rules for dismissal and what an employee can do if they think they were dismissed unfairly.
Dismissal is when an employer ends (terminates) an employee's employment. It's also called being 'sacked' or 'fired'.
Employers must follow a fair and reasonable process when they dismiss an employee. If an employer does not do this, the employee can raise a personal grievance against them. These rules protect the employee from being unfairly dismissed.
Before an employer decides to dismiss an employee
Before an employer decides to dismiss an employee, they must make sure they have followed any relevant processes first.
For example, following any workplace policies for managing:
- performance issues
- misconduct
- ongoing health issues.
Rules to follow when dismissing an employee
If an employer wants to dismiss an employee, they must:
- have a good reason for dismissal
- follow a fair process
- meet the good faith obligation
- give the employee:
- the notice stated in their employment agreement (unless they are dismissing them for serious misconduct), or
- a reasonable period of notice if the agreement does not state a notice period, and
- provide a written statement explaining the reason for dismissal:
- if the employee asks for it within 60 days of find out they've been dismissed, and
- within 14 days of the employee asking for it.
The employee (and any other parties involved, such as unions) must also meet the relevant good faith obligations.
For more information about these rules, see:
Workplace policy or procedure
If the employer has a workplace policy or procedure for dismissal, they must follow this as well as all the dismissal rules.
Dismissing a fixed-term employee
If an employee is on a fixed-term agreement, they usually finish their employment when the agreement ends.
If an employer wants to dismiss an employee on a fixed-term agreement before it’s due to end, they must follow all the dismissal rules.
Permanent or fixed-term employment
Dismissing a casual employee
If an employer no longer wants a casual employee to keep working for them, they can usually stop offering work. However, if the employee is in the middle of an agreed period of work, they must be able to finish this first.
If an employer wants to dismiss an employee during an agreed period of work, they must follow all the dismissal rules.
Employers should check the employee’s work situation to make sure it’s still casual. If it has changed from casual to permanent, the employer must follow all the dismissal rules.
Dismissing an employee while they're on leave
If an employer wants to dismiss an employee who is on any type of leave, they must follow all the dismissal rules.
If an employee is on long-term leave due to health issues, the employer may eventually consider dismissal for medical incapacity.
Sample letters for dismissing an employee
These are sample letters that employers may find useful if they have decided to dismiss an employee. Employers should use these letters after they have followed all the rules for dismissal.
There is a letter for:
- dismissing an employee with notice - when the employee either:
- works the notice period, or
- does not work the notice period but is still paid for it
- dismissing an employee without notice ('instant dismissal' or 'summary dismissal' for serious misconduct).
- Sample letter - Termination of employment (dismissal with notice) (DOCX, 31 KB) [DOCX, 31 KB]
- Sample letter - Termination of employment (dismissal without notice) (DOCX, 24 KB) [DOCX, 24 KB]
Letter for dismissing an employee at the end of a performance process
For a sample letter to dismiss an employee at the end of a performance process, see:
Constructive dismissal
Constructive dismissal is when an employee feels they have no choice but to When an employee tells their employer they will be leaving their job.
Constructive dismissal is a type of unjustified dismissal. If an employee believes they have been constructively dismissed, they can raise a personal grievance.
For more information about constructive dismissal, see:
Final pay
When an employee is dismissed, their last pay must include their:
- final wages
- holiday pay, and
- any other payments they’re owed.
Last day and reference
On the employee’s last day, the employer and employee both have tasks they need to complete. For example, organising to return company property or setting up ‘out of office’ messages.
The employee can also ask for a statement of service and a reference. The employer must provide a statement of service but does not have to provide a reference.
If an employee thinks their dismissal was unfair
If an employee believes their employer has not followed the dismissal rules, they can either:
- raise a personal grievance, or
- ask for mediation to help resolve the issue.
They can also get legal advice.
Citizens Advice Bureau(external link)
Personal grievance
A personal grievance:
- is an action an employee can take against a current or former employer, and
- is raised when there is an employment issue that cannot be resolved.
Mediation
Mediation is a voluntary, confidential and safe way for employers and employees to talk about the problem with an independent mediator.