The Clearance Letter from Employer is a critical document in Australian employment practice that serves multiple purposes in the employment separation process. It is typically issued when an employee leaves an organization, whether through resignation, termination, or mutual agreement. The document provides formal confirmation that all employment-related obligations have been met by both parties, including the return of company property, settlement of accounts, and completion of handover procedures. Under Australian employment law, while not strictly mandatory, this document has become standard practice as it provides legal protection for both employers and employees, helps prevent future disputes, and can be valuable for employees seeking new employment. The letter must comply with various Australian regulations, including the Fair Work Act 2009 and Privacy Act 1988, particularly regarding the handling of personal information and employment records.

1. Letter Header and Date: Company letterhead, current date, and reference number if applicable

2. Addressee Details: Full name and address of the employee

3. Employment Confirmation: Confirmation of employment period, position(s) held, and employment status

4. Termination Details: Date of termination and nature of separation (resignation, redundancy, etc.)

5. Clearance Statement: Confirmation that all company property has been returned and obligations have been met

6. Final Entitlements: Confirmation that all final payments and entitlements have been processed

7. Signature Block: Name, position, and signature of authorized company representative