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.

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.

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.

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.

When Is an Employer Exempt From Redundancy payments?
By Jenelle Miranda|Mar 5, 2019

When Is an Employer Exempt From Redundancy payments?

Are you required to pay redundancy to an employee being terminated? Or are you entitled to a redundancy payment? Make sure you know your redundancy rights.

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.

Can Employees Take Leave During Notice Periods?
By Ilyas Omari|Jun 2, 2025

Can Employees Take Leave During Notice Periods?

Is it possible for an employee to take leave during their notice period? You can find out by reading this article.

What Legal Services do I need to Fire an Employee?
By Zachary Swan|Aug 31, 2016

What Legal Services do I need to Fire an Employee?

Firing an employee is a difficult process for businesses. Find out what legal services your business will need when firing an employee.

Letter of Resignation Sample (2025 Update)
By James Miotto|May 15, 2025

Letter of Resignation Sample (2025 Update)

Resigning from your job isn't always an easy thing to do. Create your free Letter of Resignation (Company) by using our sample.

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