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How to Fire an Employee Respectfully in 15 Steps

Termination

10 Mar 2024 (Last updated 3 Sept 2025)

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Letting go of an employee can be uncomfortable, but navigating the process with respect and professionalism is crucial for both parties. This becomes even more important for small and medium-sized businesses, where tight-knit teams often feel more like family.  

The termination or dismissal process requires meticulous attention to detail, a deep understanding of legal obligations and human empathy. It’s a situation that no employer relishes, yet it’s sometimes necessary.  

Below are 15 steps designed to guide employers through the process with dignity, legality, and respect.

1. Ensure solid groundwork 

If you need to terminate an employee, thorough preparation is key. Work with human resources to build a paper trail early on — document all the details of the employee's performance issues, including specific examples, dates, and conversations. Review the employee's file and ensure that any issues have been clearly communicated beforehand. 

2. Adhere to legal standards 

Familiarise yourself with the Fair Work Act 2009 and any relevant employment agreements or awards. Ensuring compliance with these standards is crucial to avoid legal issues and damage to the company's reputation. 

General legal obligations  

The termination must be for a "fair" reason, such as performance issues or misconduct.  

  • Fair dismissal: The termination must be for a "fair" reason, such as performance issues or misconduct.  

  • Procedural fairness: You must follow a fair process, including providing warnings, opportunities to improve and a chance to respond to allegations. 

  • Notice of termination: You must provide written notice of termination based on the employee's length of service. 

  • Payment entitlements: You must pay the employee all their accrued entitlements, including annual leave, sick leave, and long service leave.

  • Records: You must keep accurate records of the termination process, including reasons for the decision, warnings, and communication with the employee. 

Additional considerations

  • Discrimination: It is illegal to terminate someone based on prohibited discrimination grounds, such as race, gender, age or disability. 

  • Unions: If the employee is a union member, you may need to follow specific procedures outlined in outlined in their enterprise agreements.

3. Choose an appropriate setting 

Ideally, if you need to fire employees, this should be a face-to-face meeting in a private and neutral space. This respects the employee's privacy and helps maintain a professional atmosphere while delivering difficult news. Consider the employee's physical needs and ensure the chosen location is accessible if necessary. Firing a remote employee virtually requires extra sensitivity and planning to ensure a respectful and professional process. 

4. Communicate clearly and kindly 

Throughout the process, prioritise open and honest communication with the team member. Address poor job performance concerns early and provide opportunities for improvement. Offer constructive feedback and coaching and document your efforts. Avoid jargon and be honest about the reasons behind the dismissal. 

5. Detail the specifics 

Practice what you'll say, focusing on delivering the news clearly and concisely. Provide concrete examples of why the dismissal is occurring, referencing documented instances where expectations were not met. This could include poor performance or misconduct that breaches company policy, like misuse of company property or unethical behaviour. Anticipate potential questions and have answers prepared.  

6. Extend a helping hand 

Offer support where possible, such as references or assistance in finding new employment, acknowledging the individual’s contributions despite the dismissal. 

7. Conduct with respect 

Maintain a respectful and professional demeanour throughout the meeting. Acknowledge the employee's efforts and thank them for their service. 

8. Keep the interaction concise 

Aim for a brief yet comprehensive meeting, covering all necessary aspects without prolonging the discomfort for both parties involved. 

9. Be prepared for emotional responses 

Firing is stressful, and even the most professional employee may react emotionally. Have tissues, water, and support available, and be prepared to listen empathetically while remaining firm in your decision and provide clear next steps. 

10. Manage departure with dignity 

If the employee is to leave immediately, ensure this process is conducted with respect, safeguarding their dignity and privacy. Plan logistics beforehand, such as who will inform the team and collect company property. Having clear procedures minimises confusion and anxiety for the employee. 

11. Promptly process final payments 

Calculate and deliver any final pay and accrued entitlements owed to the former employee, including salary and wages up to the termination date, including overtime,penalty rates and allowances, accrued annual leave and any applicable long service leave, depending on state/territory legislation and employee eligibility.

12. Inform the team appropriately 

Communicate with other employees in a way that respects the dismissed employee's privacy while addressing any impacts on workflow or morale.  

Understand that your team may have mixed emotions, including worry, sadness, or confusion. Address these concerns empathetically and be open to questions. If it's relevant, clarify that this is an isolated incident and reassure other employees about their own standing within the company. Be open to discussions and offer support to anyone struggling with the change. 

13. Reflect and learn 

After the dismissal, evaluate the process to identify any lessons learned, aiming for continuous improvement in handling similar matters. Engage with HR professionals to ensure your approach remains aligned with best practices and legal requirements. 

14. Consult legal experts when in doubt 

Due to the complexities involved, it is strongly recommended to consult with an employment lawyer or HR professional before terminating an employee in Australia. They can advise you on your specific legal obligations based on the employee's circumstances and your business situation. Refer to trusted sources like the Fair Work Ombudsman,Fair Work Commission and the National Employment Standards.

15. Document everything 

Maintain thorough records of the entire process, from performance reviews to the dismissal meeting, safeguarding against potential legal challenges. 

Bonus tips for a smooth employee dismissal   

Firing an employee is never an enjoyable experience, but here are a few more tips to make the process less painful for everyone. 

Practice empathetic listening

During the dismissal conversation, actively listen to the employee’s response. This not only aids in maintaining a calm atmosphere but also ensures that any final queries they have are addressed respectfully.

Avoid surprises

Ensure that the dismissal does not come as a surprise. There should be a clear trail of feedback, performance reviews and warnings that led to this point, allowing the employee to understand the trajectory that has resulted in the dismissal. 

Fostering a supportive transition 

Where possible, offering support such as outplacement services can greatly assist the departing employee in their transition, showcasing the organisation's commitment to their well-being beyond employment. 

Provide transition services: 

Where possible, offering support such as outplacement services can greatly assist the departing employee in their transition, showcasing the organisation's commitment to their well-being beyond employment. 

Clarify the narrative: 

Help the employee understand how to explain their departure in future job interviews, providing them with a narrative that does not unduly harm their career prospects. 

Legal safeguards and ethical considerations 

Review non-disclosure agreements (NDAs) and non-compete clauses: 

Ensure that any NDAs or non-compete clauses are reviewed and clearly explained to the terminated employee, balancing legal safeguards with fairness. 

Ethical exit strategies:

Consider the broader impact of the dismissal on the employee's career and well-being. Aim for an exit strategy that is as positive as possible under the circumstances, reflecting the organisation's values. 

Peninsula: Empowering leaders and protecting workplaces 

The journey through an employee dismissal offers an opportunity for growth, learning, and refinement of leadership practices. It underscores the importance of a thoughtful, legally compliant approach that respects the dignity of all involved. 

At Peninsula, we understand the weight of these moments and the importance of handling them with the utmost care and professionalism. Whether you're seeking guidance on legal compliance, best practices for conducting dismissals, or support in maintaining a positive workplace culture, our team of experts is here to assist. 

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Termination

How to Successfully Manage Offboarding

The Australian Bureau of Statistics reported that 2.3 million Australians had left or lost a job from Feb 2022 to Feb 2023. This is the highest job mobility rate the country has seen in over a decade. The sheer number of employees parting ways with Australian employers leads to an important question – how effectively are businesses managing their offboarding process?   When an employee leaves a company without undergoing an offboarding process, an opportunity to improve the business walks out of the door with them.  Are you keen to avoid missed opportunities? Read on to discover the often-overlooked benefits of offboarding and get practical tips for improving your company’s exit process.   What is offboarding?  Offboarding is a formal procedure a business follows before an employee leaves the company, whether because of resignation, redundancy, dismissal, or retirement. Having a well-defined offboarding process is important because it ensures a smooth transition for the employee, the employer, and the person who steps into the vacant role. Depending on the employee’s role and responsibilities, the offboarding process can be highly complex and may take several weeks or months to complete. We’ll explore the end-to-end process and its most important components in more detail below. What is the difference between onboarding and offboarding?  These two terms are analogies referring to an ocean voyage, which involves onboarding and offboarding a boat. In a workplace setting, these terms refer to the beginning and the end of an employee’s journey with a company. Onboarding is the process of welcoming and integrating a new employee into a company. It includes induction  tasks such as providing the employee with an overview of the company, introducing them to their new colleagues, and giving them training specific to the tasks and responsibilities of their role.  Naturally, offboarding is the opposite. It involves collecting company equipment, revoking access to company accounts, and conducting an exit interview to gather feedback about the employee’s experience. Why is offboarding important?  Offboarding is important because it helps to ensure that the employee’s departure is smooth and orderly. It also ensures all their work is properly transitioned to a replacement with minimal impact on productivity.  It also gives employers and employees the opportunity to end the relationship on a positive note, preserving networking opportunities which may prove valuable further down the track.  Crucially, offboarding gives employers a chance to find out how the company experience can be bettered for current and future employees. When it comes to building better staff retention, a well-planned offboarding process is one of the handiest tools in your box. Why do so many businesses overlook the offboarding process?  While most companies see the value of perfecting the onboarding process, and often invest in it heavily, they’re less likely to pay attention to the quality of their offboarding. This means offboarding is normally the missing piece in the employee lifecycle. This leaves departing employees feeling disconnected and undervalued.   Why? Good question. Here are a few reasons why so many businesses overlook offboarding:  It’s not seen as a priority: Many businesses view offboarding as a simple matter of processing paperwork and removing access to systems. As a result, it often gets pushed to the bottom of the to-do list.  It’s time-consuming: Offboarding can be a complex process, especially for large organisations. It involves collecting equipment, updating records, and managing security risks. This can be a lot of work, especially when HR teams are already stretched thin.  It’s uncomfortable: Some businesses may avoid offboarding because it involves difficult conversations, such as exit interviews. They may also worry about upsetting departing employees, especially if they are leaving under negative circumstances.  No matter how time-consuming or awkward an offboarding process might be, make sure you follow it with every departing staff member.   To return to the ocean voyage analogy, neglecting offboarding and making an employee’s last days a painful experience is a little like asking them to walk the plank!  How does offboarding help businesses?  1: Minimise disruption to the business  A well-managed offboarding process can help to minimise the disruption caused by an employee’s departure. It can help you understand what responsibilities and tasks need to be picked up by somebody else (don’t make the mistake of assuming you know everything the employee’s been doing from day-to-day!).  This will also help you figure out what skills and qualities you need when you’re recruiting for the vacant role. When you do find the right replacement, you’ll be in a stronger position to train them for the demands of the role. 2: Protect company assets and data  The offboarding process provides an opportunity for businesses to collect company equipment and to revoke access to company accounts. This helps to protect the company’s assets and prevent data from being misused. Essentially, offboarding ensures there are no loose ends. For example, you won’t find yourself emailing a former employee weeks later asking for his or her office access card.    3: Gain valuable feedback  The offboarding process is a good time for businesses to conduct exit interviews with departing employees. 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No one wants to waste their precious time applying for a job at a company with a reputation for being a nightmare.  In fact, nearly 50% of job seekers check Glassdoor reviews before doing any other job search activity. So, if you want to attract top talent, make sure your Glassdoor reviews are stellar. The surest way to do this is to master your offboarding and make sure your staff leave you a glowing review.  You should also respond to both positive and negative reviews on Glassdoor. This shows potential employees that you’re listening to feedback and committed to actively improving your company culture.  How does offboarding help employees?  As well as benefiting businesses, a solid offboarding process can be a boost for your employees too. The positives include:  Leaving on a positive note: A well-managed offboarding process can help employees to leave the company on a positive note. This is because the business will have taken the time to say goodbye to the staff member and thank them for their contribution.  Getting closure: The offboarding process can provide employees with an opportunity to get closure on their time with the company. This can help them to move on to the next stage of their career.  Receiving support: The offboarding process can provide employees with support as they transition to their new role or to unemployment. This support can include things like providing them with references or helping them to develop a resume, cover letter and portfolio. Naturally, this is especially important when staff are made retrenched or made redundant.   What are boomerang employees?  Don’t overthink it, boomerang employees do exactly what a boomerang does – they come back!  Boomerang employees are employees who leave a company and then return to work for the same company at a later date. Companies like boomerang employees for several reasons:  They are already familiar with the company culture and processes. This can save the company time and money on onboarding and training.  They are often more productive than new hires. Boomerang employees already have a good understanding of the company’s products and services, and they have a track record of success at the company.  They can bring new ideas and perspectives. Boomerang employees have often had experience at other companies, which can help them bring new ideas and perspectives to their old company.  In addition, boomerang employees can be a sign that a company has a good work environment and culture. Employees are more likely to return to a company that they enjoyed working for in the past.  What does a good offboarding process look like?  A good offboarding process is one that is well-structured and covers all bases. 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Termination

Can You Terminate a Whistleblower?

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In legislation, a whistleblower is someone within, or with a connection to, a company or organisation who raises concerns or questions about ‘misconduct’ or  ‘improper states of affair’ within that same organisation. Misconduct or improper states of affair will depend on the circumstances, however, can include behaviours such as theft, fraud or gross mismanagement. This will also include information about the company or organisation, or an officer or an employee of the company or organisation, engaging in conduct that: breaches the Corporations Act 2001; or breaches other financial sector laws enforced such as the Australian Securities and Investments Commission (ASIC) – for more information please seek professional advice; or breaches against any other law of the Commonwealth that is punishable by 12 or more months imprisonment; or represents a danger to the public or financial system. Whistleblowers can include current or former employees, officers, contractors and superannuation trustees. Spouses and relatives of these individuals are also covered under the whistleblower ‘protection regime’. Why are whistleblowers important? Whistleblowers play an important role in identifying and calling out potential harm to consumers and the community. Under whistleblower protection legislation, a whistleblower must have ‘reasonable grounds’ to suspect that the information they are disclosing about the company or organisation concerns: misconduct; or an improper state of affairs or circumstances. Note: Misconduct will not be limited to misconduct as defined by your own policies and should be considered more generally.    Which laws protect whistleblowers? The Corporations Act 2001 grants certain individuals legal rights and protections as whistleblowers. These protections include: Whistleblower’s identity must not be disclosed under any circumstances without their consent or authorisation. In certain circumstances, however, information can be distributed to ASIC, Australian Prudential Regulation Authority (APRA) or a lawyer. Whistleblowers are protected from being summoned to court for making the disclosure including if that disclosure is in breach of their contract of employment. It is a criminal offence to victimise or cause detriment to a whistleblower because of their disclosure and civil penalties may apply. Individuals can seek compensation through a court if they suffer loss, damage or injury for making their disclosure. What are the risks associated with terminating a Whistleblower? Possible risks associated with termination of a whistleblower could include, but are not limited to: General protections claim: The Fair Work Act 2009, protects individuals from adverse treatment for actions like exercising a statutory right to make a complaint or inquiry about their work conditions, environment or employer. Therefore, terminating an employee, for speaking out could be against the Fair Work Act 2009 and could result in the employee lodging a costly and drawn out claim against you and the business. Negative effect on workplace culture and employee morale: Employees who witness poor treatment of colleagues, may be less inclined to make reports of future poor behaviour or processes within a workplace. It is recommended that you seek professional advice, and plan carefully to help mitigate unwanted negative effects on other staff, organizational culture, and consider unwarranted publicity or reputational damage. Possible reinstatement: In certain circumstances, an employer may be ordered to reinstate an ex-employee into their original position or a comparable position within the organisation. Apology to whistleblower: In certain situations, the person, company or organisation that caused detriment or made a threat may be ordered to apologise formally. Whistleblower policy in Your workplace 1.Implementing a Policy Only certain companies are required to have a whistleblower policy by legislation. However, business owners should still ensure whether their business fits these requirements. If you are required to have a policy in place, it must contain information about: the protections available to whistleblowers; how and to whom an individual can make a disclosure; how the company will support and protect whistleblowers; how investigations into a disclosure will proceed; how the company will ensure fair treatment of employees who are mentioned in whistleblower disclosures; and how the policy will be made available. 2.Give Staff Training Although not a requirement, businesses which are required to have and identify how they will communicate a whistle blower policy, should consider training their staff in the policy. Best practice training will include education for senior managers, offices and others authorised by the company to receive disclosures from whistleblowers (e.g. Compliance officers), and how their roles may specifically intersect with legislation. It will also include training all staff on the whistle blower policy. 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Termination

Can You Terminate an Injured or Sick Employee?

Terminating an employee due to injury or illness is a complex area fraught with legal, ethical, and human resource challenges. In Australia, the legal framework surrounding this issue is designed to protect both the rights of employees and the operational needs of employers.   This article delves into the key considerations and legalities of terminating an injured or ill employee, with a focus on NSW and workers' compensation implications.  Understanding the legal landscape  In Australia, employment laws strictly regulate the termination of employees, especially those suffering from injury or illness. The Fair Work Act 2009 and state-specific legislation like the Workers Compensation Act 1987 (NSW) provide a clear framework that employers must navigate carefully.  Terminating an injured employee: the considerations  Terminating an injured worker is a delicate and legally complex matter. While you might face justifiable business concerns, navigating this situation ethically and within the bounds of Australian law is paramount.  Fair Work Act protections The Fair Work Act prohibits dismissal on the grounds of an employee's temporary absence due to illness or injury. This is provided the absence is supported by appropriate medical evidence and does not exceed three months, or a total of three months over a 12-month period.  Workers’ compensation in Australia  Workers' compensation is a mandatory insurance scheme that provides financial support and medical care to employees injured or sickened because of their work. Workers' compensation legislation differs across states and territories, but in general, employers must purchase workers' compensation insurance to cover themselves and their employees.   Workers' compensation benefits include things like expenses for medical treatment, lost wages, permanent impairment, and death benefits. Terminating an injured employee on workers' compensation is illegal unless there are exceptional circumstances like redundancy. Workers’ compensation in NSW  Employees on workers' compensation in NSW are further protected. The Workers Compensation Act states that you cannot dismiss an employee within six months solely because of their injury or incapacity to perform work resulting from a workplace injury. Beyond six months, dismissal of an injured employee is permissible only once the employer has fulfilled all responsibilities towards the employee.  Genuine operational reasons  Employers must demonstrate that any decision to terminate is based on genuine operational requirements of the business and not the employee's incapacity. This might include the inability to adjust the work or provide suitable duties after reasonable adjustments have been considered. Consultation and support  Before making any termination decision, employers should consult with the employee, review possible workplace adjustments or alternative positions. Documentation and communication  Maintaining transparent communication and thorough documentation throughout the process is vital. This includes keeping detailed records of consultations, medical assessments and any efforts made to accommodate the employee's condition. Explore alternatives to termination  If the injured worker can't return to pre-injury duties, this could include modified duties — performing adjusted duties with less physical or mental demand — redeployment, flexible working arrangements, rehabilitation programs to support the employee's return to work or utilising accrued leave entitlements, including sick leave, annual leave or personal leave, to cover the absence.   Risks of unlawful termination  Terminating an employee without adhering to the legal and procedural requirements can lead to claims of unfair dismissal, discrimination or breach of employment contracts. These cases may be referred to the Fair Work Commission (formerly the Industrial Relations Commission). Employers in NSW must be mindful of the potential legal implications and the importance of proceeding with caution and due diligence.  Best practices for employers  Running a small business comes with its fair share of challenges, and navigating employee illness or injury can be particularly tricky. Here are some best practices for striking the right balance between supporting your people and maintaining business continuity.   Develop clear policies and procedures  Establish well-defined guidelines outlining sick leave, workers' compensation claims and return-to-work processes. Ensure policies are readily accessible and easily understood by all employees and stay updated on relevant workers' compensation legislation and workplace safety regulations.  Train managers on legal requirements and sensitive communication  Equip managers with the knowledge and skills to handle sensitive conversations about illness, injury, and performance concerns. Train them on legal requirements, fair dismissal principles and respectful communication practices.  Build a positive and supportive workplace culture  Promote empathy and understanding towards employees facing health challenges. Implement programs to promote employee well-being and mental health and encourage a culture of mutual respect.  Prioritise communication and compassion  When dealing with injured workers, it is best practice to approach the situation with empathy, maintain open lines of communication, and explore all possible options to retain the employee within the organisation.  Seek legal advice  Given the complexity of employment and workers' compensation laws in Australia and NSW, seeking legal advice is prudent. This ensures any actions taken are compliant and in the best interest of both the employer and the injured employee.  Empowering employers with knowledge and support  Understanding your obligations and the rights of your employees is crucial when facing the challenging decision of terminating an injured or ill employee. By adhering to legal requirements and adopting a compassionate approach, employers can navigate these situations with integrity and fairness.  Need guidance on terminating an injured or ill employee?  Terminating an employee due to injury or illness requires careful consideration and expert guidance. Peninsula is dedicated to supporting Australian businesses through complex HR and legal challenges.  Contact Peninsula today for comprehensive advice on managing terminations ethically and legally while upholding the dignity and rights of your employee. 

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