This Termination Letter explains that you are terminating an employee on the basis of serious misconduct. The termination of any employee should always be set in writing. A written record can help protect a business if any questions or legal issues arise regarding the termination. Generally, an employee should receive a warning letter and opportunity to improve before they are terminated.

It is recommended that you seek legal advice before terminating an employee to understand its legal aspects and whether the employee would have sufficient grounds to make a claim for unfair dismissal. 

The reason for dismissal – why?

Whether an employee’s misconduct justifies dismissal will depend on the degree of seriousness. For example, if an employee at a bakery steals a loaf of bread, a warning may suffice; if an employee at a bank misappropriates funds, a dismissal for misconduct may be justified.

If the dismissal relies on whether you have a workplace policy, you need to show that the policy has been communicated to the employees.

The process for dismissal – how?

Conduct an investigation

Before deciding whether to dismiss an employee for misconduct, you should investigate the employee’s behaviour. There may be an investigation process set out in a policy.

If not, you may like to consider the following investigative procedure:

1. Gather a written witness report.
2. Meet with the employee to inform them of the investigation and allow them to respond.
3. Determine on the evidence whether it happened, whether there were mitigating circumstances and what disciplinary action to take.
4. Meet with the employee to give notice of dismissal.

Give notice

A notice period is the length of time that you must give an employee to end employment. It should include the steps you have taken throughout the investigation, the reason for termination, the length of notice and the date employment will end.

How long should the period of notice be?

To dismiss an employee, you must comply with specified periods of notice. Notice periods can be found here.

Your employee may choose to receive payment instead of working through their notice period. The pay will be equivalent to the amount the employee would have been paid, had they worked till the end of the notice period.

Pay all outstanding payments

– outstanding wages they have worked,
– any payments instead of notice,
– accumulated annual leave entitlements.

Use this Termination Letter (Serious Misconduct) if:

• You would like to terminate the employment of an employee for serious misconduct;
• You would like to concisely explain to the employee why he/she has been dismissed;
• You want to follow all the proper processes in terminating the employee; and
• You would like to have a record of the termination in the event of any legal action.

What does the Termination Letter (Serious Misconduct) cover?

• Documents the employee’s misconduct;
• Informs the recipient that the employment contract is terminated; and
• Sets out the relevant termination payments.

Other names for Termination Letter (Serious Misconduct) include:

• Letter of Termination;
• Termination of Employment Letter;
• Letter of Termination of Employment;
• Employment Termination Letter;
• Misconduct Termination Letter; and
• Letter of Termination Due to Misconduct.

Other documents you may need:

• Termination letter (Poor Performance)
• Termination letter (Notice or Payment in Lieu)
• Formal Warning Letter (Unsatisfactory Performance)

Further information

• Requirements for Valid Notice: Termination of Employment