Termination of employment means ending the job relationship between an employee and employer. This can happen in different ways, like when an employee decides to quit, or an employer decides to fire or dismiss an employee.
This term covers various situations where employment ends. For example, if an employee chooses to leave their job, it's called resignation. If the employer ends the employment, it could be due to firing (often for performance or conduct reasons) or dismissal (which might involve redundancy or business changes). The process and implications of termination vary depending on whether it's initiated by the employee or the employer.
When you end someone's employment, you must give written notice or pay in lieu under the National Employment Standards (1 to 4 weeks depending on service, plus a week for employees over 45 with at least 2 years' service), unless they are dismissed for serious misconduct or another exception applies. You must pay all outstanding wages and entitlements, and redundancy pay if the job is made redundant. The reason and process must also be fair to avoid unfair dismissal or general protections claims. For example, a 50-year-old employee with 4 years' service is entitled to 4 weeks' notice.
Read our guide to termination of employment, or get Fair Work representation for employers if a claim is made.
General information only
This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.
Last reviewed: October 2026
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