4a Separation
Separation
Q: What is separation in the employment cycle?
A: When an employee-employer relationship or contract comes to an end.
Q: What are the two main types of separation?
A:
Voluntary: initiated by the employee (resignation, retirement)
Involuntary: initiated by the employer (dismissal, retrenchment)
Q: Why must separation processes be fair?
A: To ensure workplace safety, productivity, and to avoid claims of unfair dismissal under the Fair Work Act.
Resignation
Q: Define resignation.
A: When an employee voluntarily decides to leave the workplace.
Q: Key points about resignation:
A:
Employee-initiated
Requires notice (as per Award, EA, or length of employment)
Can involve moving to another employer/industry
Q: Extra info about resignation notice:
A: Employer may waive notice and pay out employee, especially if they have access to sensitive information.
Retirement
Q: Define retirement.
A: When an employee voluntarily decides to leave the workforce.
Q: Key points about retirement:
A:
Requires notice
Decision often financial (superannuation 11.5% from employer, or access to Aged Pension at 67)
Can be health-related (unable to perform tasks at required standard)
Q: Legal note on retirement:
A: Employers cannot force retirement due to age (EEO law). Performance issues must be handled carefully.
Dismissal
Q: Define dismissal.
A: When an employer forces an employee to leave the workplace.
Q: Key points about dismissal:
A:
Employer-initiated, involuntary
Valid reasons:
Capacity: poor performance
Conduct: negative behaviour
Organisational: position no longer required (excluding retrenchment)
Q: How should dismissal be handled?
A:
Generally, follow a process allowing the employee to improve performance/behaviour
Keep evidence of process (often part of performance management)
Serious misconduct (e.g., assault, theft, drugs, safety risk) can lead to instant dismissal
Retrenchment
Q: Define retrenchment.
A: When an employee’s position or job is no longer required.
Q: Key points about retrenchment:
A:
Employer-initiated, involuntary
Valid reasons: new technology, economic downturn, relocation, restructuring
Notice must be given promptly
Large-scale redundancies: notify Centrelink for alternative employment/retraining
Severance pay based on length of service
Q: Important considerations for retrenchment:
A:
Position must genuinely be redundant
Severance costs may be high for employers