Terminate an Employee’s Contract

When Do I Have the Right to Terminate an Employee’s Contract?

Australian employment contracts tend to provide a lot of protection to employees, but it’s important to realise that employers have rights as well. For example, two of the most important employer rights are workplace surveillance and the right to expect reasonable performance from every employee.

If an employee isn’t meeting the expected performance standards, you might be able to terminate their contract without advance warning. However, there are conditions. And, there are other reasons why you may want to and have the right to terminate a contract.

Below are a few common situations when you have the right to terminate an employees contract:

  1. With the Provision of Adequate Notice

In the absence of another clause written into an employment contract, an employer must provide a minimum amount of notice when terminating a contract. If a contract specifies a particular notice period, it must be given. If not, you need to give:

  • At least one weeks notice for less than a year of employment.
  • At least two weeks notice for one to three years employment.
  • At least three weeks notice for three to five years employment.
  • At least four weeks notice for more than five years employment.

On top of this, employees aged 45 or older who have been employed for a minimum of two years are entitled to an extra week of notice. If you believe you aren’t receiving your proper rights, this is when you should speak to your employment lawyer.