Termination letter template

Draft a termination letter with notice worked out from the employee’s service and age, or a summary dismissal letter for serious misconduct, plus the final pay items to include.

Figures checked 5 November 2026. Free to use, no sign-in.

Termination letter

NES minimum notice: Enter start date
Notice in the letter: —
Days from notice to last day: —

Check before you use it

NES minimum notice: enter the start date to calculate it. Check your award, enterprise agreement and the employment contract: if any of them requires longer notice, give the longer period.
Count only continuous service as a permanent employee. Casual periods do not count towards notice (s 117(4)), and some unpaid leave does not count as service.
Before deciding, make sure the employee was told the reason, had a real opportunity to respond, and could bring a support person. For performance issues, they should usually have been warned first (s 387).
If the employee is on workers compensation, personal leave, parental leave, or has recently raised a complaint or other workplace right, get advice before sending this letter.
If the employee has served the minimum employment period (6 months, or 12 months for a small business), they can apply to the Fair Work Commission within 21 days after the dismissal takes effect.

[Employer name]

[Date of letter]

Private and confidential [Employee name] [Position]

Dear [Employee first name],

Termination of employment

We are writing to confirm our decision to end your employment with [Employer name].

The reason for this decision is [state the reason, as put to the employee during the process].

Before making this decision we considered [the employee’s response, e.g. your written response of [date] and what you told us at our meeting on [date]].

You are being given [number of weeks] notice. Your last day of employment will be [last day of employment]. You are expected to keep working your normal hours until then, unless we agree otherwise.

Final pay

Your final pay will include wages owing up to your last day, and any annual leave you have not taken, including leave loading if it would have been paid when you took leave. [Add any long service leave, time off in lieu or other amounts owing under your award, agreement or contract.] Unused personal/carer’s leave is not paid out.

Your final pay will be paid by [date: check your award or agreement, most require payment within 7 days of the last day], with a payslip and an employment separation certificate if you ask for one.

If you have any questions about this letter or your final pay, please contact [contact name and phone or email].

Yours sincerely,

[Your name]

[Your position]

[Employer name]

Highlighted text in [brackets] still needs your input. General information, not legal advice.

How this works

The Fair Work Act requires written notice of the day employment ends (s 117(1)). The builder works out the minimum notice under s 117(3) from the start date you enter and the date the letter is given, and uses the longer period if your award, agreement or contract requires more.

Service is counted to the end of the day notice is given. Casual service is excluded (s 117(4)).
If the last day you enter is too early for the notice period, the checklist tells you the earliest date that works.
The summary dismissal version states the conduct relied on and that no notice is paid, and still lists the final pay that is owed.

The letter assumes you have already told the employee the reason and heard their response. If you have not, start with a show cause letter. Nothing you type leaves your browser.

Legal basis

Checked against these sources on 5 November 2026. Spotted a figure that looks wrong? Tell us.

Questions

How much notice do I have to give?

Under the National Employment Standards: 1 week for up to 1 year of service, 2 weeks for more than 1 and up to 3 years, 3 weeks for more than 3 and up to 5 years, and 4 weeks for more than 5 years. Add 1 week if the employee is over 45 and has at least 2 years of continuous service. An award, agreement or contract can require more.

Can I pay notice instead of having the employee work it?

Yes. Payment in lieu must be at least the full rate of pay for the hours the employee would have worked during the notice period, and the Fair Work Ombudsman says it must be paid before or on the day employment ends.

When is no notice required?

Notice under the NES does not apply to casual employees, employees on a contract for a specified period, task or season, or an employee dismissed for serious misconduct. Serious misconduct is defined in regulation 1.07 of the Fair Work Regulations.

What goes in the final pay?

Wages owing, any payment in lieu of notice, and unused annual leave including leave loading where it would have been paid during employment. Long service leave may be payable under state law. Personal/carer’s leave is not paid out. Most awards require final pay within 7 days of the last day.

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Questions the calculator can’t answer?

Workfloor answers pay, award, leave and termination questions for your team, with the Fair Work Act section or award clause behind each answer.

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