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Ending an Employment Contract

Employment Contracts

25 June 2025 (Last updated 3 Dec 2025)

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Termination of an employment contract can happen for a number of reasons such as resignation, dismissal, abandonment, or redundancy.

Regardless of why the employment relationship is ending, the correct procedure must be followed to ensure the process is fair and reasonable.

Dismissal

A dismissal is the termination of an employment relationship via a process which has been instigated by the employer.

Employers can only dismiss employees on reasonable grounds and must ensure they follow strict guidelines to avoid the risk of facing an unjustified dismissal claim. According to New Zealand employment law, an employee can be fairly dismissed based on the following grounds:

  • Serious or repeated misconduct – Behaviour which falls outside workplace standards and/or poses a risk to employee safety, or undermines the trust and confidence essential to the employment relationship
  • Performance issues – The employee is unable to meet performance standards, and they’ve been given a reasonable opportunity to improve their conduct prior to the employment relationship being terminated
  • During a trial period – Unsatisfactory performance, serious misconduct or incapacity from the trial employee
  • Redundancy – The job performed by the employee is no longer necessary for the business or technological advancements have made the role redundant
  • Medical incapacity – Employee is unable to perform the duties required of their role due to medical reasons such as an illness or injury

When ending an employment relationship through dismissal, employers must give reasonable notice and a written statement explaining why the employee is being dismissed. However, in the case of serious or gross misconduct, an employer may dismiss the employee without any notice.

Resignation

Resignation is when an employee ends the employment contract and relationship. An employee may resign at any time. However, they must give reasonable notice based on the conditions of their employment contract.

While not legally required, employees should submit their resignation in writing to clearly explain their reasons for leaving, as this helps to avoid misunderstandings.

When an employer receives a notice of resignation, they must:

  • Check the notice period to confirm the conditions of the notice period are being met
  • Accept the request for resignation and calculate their final pay
  • Collect any company property in the employee’s possession

Unintended resignations

When it comes to disputes or arguments, employees might say or do something which signals their intention to resign. However, this could be a response to a heated moment and should be assessed before jumping to conclusions.

For employees, if they do not wish to terminate the contract, they should correct any misunderstandings as soon as possible. Employers should allow for a cooling-off period of at least 24 hours, then arrange a meeting with the employee to discuss their intentions. This will give the employee time to reflect on their actions and either choose to resign or amend the situation.

Redundancy

Whether due to technological advancements or changes in the business, some jobs may no longer be vital to the success of the business. In these cases, employers must make a reasonable effort to provide alternative options for redeployment.

However, if all avenues have been exhausted and are unsuccessful, an employer may have reasonable grounds to make the person redundant.

Following this decision, employers should meet with the employee to discuss and offer various kinds of support:

  • Payment of redundancy compensation (if required by the employment agreement)
  • Date of when the job will be discontinued
  • Counselling support
  • Assistance with resume writing, interview skills training, career advice, and other training to improve their chances of future employment

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Staff management, leave entitlements, performance management, and health and safety are just some of the things that business owners and employers need to keep track of. Peninsula offers a comprehensive set of services right from advice to documents to software that helps simplify your HR and HSW. Call us on 0800215029 to learn more.

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Entitlement to Work

There are thousands of foreign nationals living in Australia. Many arrive for studies and choose to stay on while some arrive with the purpose of migrating permanently. In most of these cases, the individual will need to find employment in Australia. These individuals will need to have the right to work in Australia. The right to work will depend on the visa and its duration and other supporting conditions. As an employer or a business owner, any employee you recruit must have the right and entitlement to work. The right to work is related to the documents employees can provide, thus acting as evidence of entitlement. Remember that as business owners, you are liable if you knowingly employ an illegal worker, knowing they are not an Australian or New Zealand citizen and are working without a visa, or in breach of their visa conditions. Before we review the documents required, let’s go through the eligibility of different people in Australia. Eligibility and the right to work in Australia Australian citizens Australian citizens have no restrictions placed on them working in Australia. However, a citizen may have their working rights restricted due to other factors, e.g. criminal history. New Zealand citizens New Zealand citizens do not need to apply for a visa to work in Australia but will usually receive a temporary one when they arrive that allows them to visit, study stay and work in Australia. Some restrictions apply. Permanent residents Like Australian citizens, permanent residents have no restrictions placed on them working in Australia. A permanent resident, again like Australian citizens, may have their working rights restricted due to other factors, e.g. criminal history. Non-citizens with a valid visa Whether or not a prospective or current employee can work in Australia will depend on the conditions of the visa they hold. Further, their visa may restrict the type and hours per week of work they can undertake. There are many different visas in Australia that provide a person with a right to work in Australia. Peninsula recommends you speak to a migration lawyer or agent to find out more about immigration legislation. It is your duty and obligation as an employer to ensure your employees are eligible to work in Australia. For instance, you can use the Australian government department of home affairs website which offers a Visa Entitlement Verification Online (VEVO) service to check the status of a current or prospective employee’s visa, which will tell you if they are allowed to work and any working conditions that apply. You need to make sure the employee has a valid working visa the entire time that work for you, so check it regularly, especially if their circumstances change. Types of documents considered as proof Each of the following are considered acceptable documentation that allows a person to work in Australia: Australian birth certificate. Australian citizenship certificate. Australian or New Zealand passport. Evidence of permanent residence (ie. overseas passport with VEVO check). Certificate of Status for New Zealand Citizens in Australia and photo identification. Valid visa with permission to work (not all visas allow people to work). Obtain certified copies of any original, acceptable documents or have the original documents certified by someone authorised, like a Justice of the Peace (JP). These should always be on the employee file and be updated if needed or if their circumstances change. Are there any other supporting documentation employers can accept? If the employee provides acceptable documentation but it is not an Australian government-issued form of photo identification, you can ask the employee to provide the following Australian-issued supporting documentation as proof of identity: Driver’s license. Medicare card. Enrolment to vote in Australian state or federal election. Tax File Number (TFN). References from previous employers and employment agencies. Tenancy agreements or home ownership details. Tertiary qualifications and trade certificate. Change of name certificates. These documents alone do not allow a person to legally work in Australia. They must only serve as supporting documentation along with any of the documents mentioned in the Proof of Right to Work section. Otherwise, they will still be considered an illegal worker in Australia. Right to work checks A Right to Work Check is as the name suggests, a check to ensure the employee in question is legally authorised to do their respective job. The check is a very crucial part of employment as an employer can face infringements or civil penalties if they allow an individual to work without the necessary entitlements. Ignorance of the employee’s legal status is not an excuse for employers. A Right to Work Check is beneficial for employees too as it stipulates that all minimum wage, working conditions and fair treatment are applicable to them. The information in the above article has been compiled on the basis of general information current at the time of publication. Please note that the contents of this article and website and any information provided by our Fair Work Help Line do not constitute legal advice and are not intended to be a substitute for legal or other professional advice and should not be relied upon as such. Your specific circumstances or changes in circumstances after publication may affect the completeness or accuracy of this information. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have. To the maximum extent permitted by law, we disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, currency and reliability of the information on this website, and to seek professional advice where necessary. Nothing contained on this website is to be interpreted as a recommendation to use any product, process or formulation or any information on this website. For clarity, Peninsula does not recommend any material, products or services of any third parties.

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Falsifying Documents

Being an employer means you have to deal with several things constantly. This includes managing employees, looking after their health and safety, and keeping on top of your obligations. You also need to be on the lookout for any issues or challenges that may appear during managing employees. This can be performance management, probation or even something serious such as falsifying documents. In this guide for employers, we explain what is falsifying documents, the legislation around it, your responsibilities as an employer, and how Peninsula can help you. Please note that the information is general and not intended to replace advice. If you need help understanding aspects of falsifying documents, please consult a professional. Falsifying documents Falsifying documents is when employees make a document appear to be genuine. Falsifying a document can include tampering with it, altering it, or modifying it without permission or authorisation to do so. Employees may falsify documents to get more overtime, increase their bonus, or to get higher expense claims. They may alter timecards (or time clocks) to change their working hours or tamper with financial documents, inventory records or sales targets. Employees can also falsify documents such as resumes to be considered as a potential candidate by recruiters. Some examples of falsifying documents include: Altering the date of a medical certificate to make a worker’s compensation claim. Altering the driver’s license as proof of their age to enter an establishment. Have in possession a passport which indicated their photograph but a different name. Sometimes employers will falsify records and documents to make their company look more attractive, for example, to lenders. In some cases, an employee has been forced to falsify records under duress from others in the company. Offence of possession of falsified documents Falsification of document offences covers the creation, production of copies, or use of a copied or original falsified document. They can also be charged with this offence if they had in possession of a falsified document and had intended to use the falsified document. Each offence requires that the accused intended to convince someone that the falsified document was genuine and that the convinced person would do, or not do, something because they accepted the document as genuine. Penalties for falsifying documents Making false representations on the truthfulness of the contents can have serious consequences. There are penalties that the Court can impose for this charge: Imprisonment. Community Corrections Orders. Fine. Adjourned Undertaking. Discharge. Dismissal. Workplace policies As an employer you should have a policy to handle and manage claims of falsifying documents at the workplace. This policy should be written and clearly communicated with all employees. Clearly explain the potential consequences of falsifying documents in your employee handbook, including potential ramifications for their employment. The ramifications can include warnings, disciplinary action, or dismissal. This process should be laid out carefully and clearly in the handbook and updated when necessary. It should explain the types of documents in question and what is considered as falsifying. If an employee does falsify documents and you would like to address that conduct, make sure you always follow proper procedures. Implement effective policies with Peninsula Running a business involves managing multiple obligations and keeping track of your employees and their entitlements. We know business owners and employers have a lot to manage and that's where we step in. Peninsula offers customised documents, resources, and support that is specific to your business and industry. Contact us to learn more.

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