Termination Letter (Notice or Payment in Lieu)

This Termination Letter (Notice of Payment in Lieu) allows for immediate termination (with payment in lieu) or termination with notice period of an employee.

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Last updated October 16, 2024

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Suitable for Australia

Termination Letter (Notice or Payment in Lieu)

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What is a termination letter (notice or payment in lieu)?

A termination letter (notice or payment in lieu) is a written notice from an employer to an employee, ending their employment either with a notice period or by paying the employee instead of requiring them to work the notice period.
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When should you use a termination letter (notice or payment in lieu)?

Use this letter when you need to formally end an employee's contract, either by providing a notice period or by paying them the equivalent amount instead of having them work through the notice.
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What should be in a termination letter (notice or payment in lieu)?

The letter should state the termination date, whether the employee will work the notice period or receive payment in lieu, and details of any final payments or entitlements owed to the employee.
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Frequently asked questions

Who can use this document?

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Does this letter comply with Fair Work Act requirements?

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Can this letter be used for all types of employment contracts?

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What are the key protections for employers using this letter?

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What are the limitations of this letter?

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What if the employment agreement does not specify a notice period?

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How should you deliver this letter to the employee?

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View Sample Termination Letter (Notice or Payment in Lieu)

Termination Letter (Notice or Payment in Lieu)

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Articles about Termination Letter (Notice or Payment in Lieu)

What is Payment in Lieu of Notice?
By Paul Taylor|Jun 26, 2019

What is Payment in Lieu of Notice?

Employment can end sooner than you expect. Sometimes, an employer may pay you in lieu of working out your notice. Read about it here.

Do I Have to Pay Superannuation on Termination Payments?
By Chloe Yoo|May 28, 2025

Do I Have to Pay Superannuation on Termination Payments?

Employers should familiarise themselves with their responsibilities to know when to pay superannuation on an employee’s termination payments.

How Do Redundancy Payments Work?
By Jaclyn Ling|Dec 20, 2018

How Do Redundancy Payments Work?

Has your business recently made someone redundant? Or have you been made redundant? Find out the implications here.

Resigning Without Notice: Can Employers Withhold Pay?
By Cecilia Tran|Nov 21, 2025

Resigning Without Notice: Can Employers Withhold Pay?

Are you entitled to withhold an employee’s entitlements if they resign without notice? What are the legal implications? Read our guide to find out more.

How Much Notice to Give When Terminating an Employee
By Tom Willis|Dec 3, 2025

How Much Notice to Give When Terminating an Employee

Are you planning on letting an employee go? Read this article to understand when you have to give them their notice.

Valid Notice Requirements for Employment Termination
By Mai Sarkissian|Nov 26, 2025

Valid Notice Requirements for Employment Termination

You must provide valid notice if you wish to resign or terminate an employee. In this article we explore the requirements for valid notice.

When Employers Don’t Have to Give Notice
By Cecilia Tran|Dec 5, 2025

When Employers Don’t Have to Give Notice

What is the purpose of a notice period and when do employers need to give one? Find out when employers don’t need to give notice periods.

How Does Garden Leave Work?
By Tom Willis|Mar 29, 2019

How Does Garden Leave Work?

Are you thinking of terminating an employee? Do you want to prevent them from using sensitive information with another competitor? Read this guide.

What Is the Meaning of Time In Lieu?
By Angela Omari|May 20, 2025

What Is the Meaning of Time In Lieu?

What is the meaning of time in lieu? Read our updated guide for employers and employees to understand this legal term.

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