Resignation In Lieu Of Termination Letter for Australia

Resignation In Lieu Of Termination Letter Template for Australia

This document is a formal agreement under Australian employment law that facilitates an employee's voluntary resignation as an alternative to termination proceedings. It outlines the mutually agreed terms of separation, including the effective date of resignation, final entitlements, and any specific conditions or obligations. The document ensures compliance with Australian workplace laws, including the Fair Work Act 2009, while providing clear documentation of the agreed separation terms and protecting both employer and employee interests. It includes provisions for final payments, return of company property, and ongoing obligations such as confidentiality.

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What is a Resignation In Lieu Of Termination Letter?

The Resignation In Lieu Of Termination Letter is utilized in situations where both employer and employee agree that resignation is preferable to a formal termination process. This document, compliant with Australian employment law, provides a mutually beneficial solution that allows employees to maintain a cleaner employment record while giving employers a streamlined separation process. It typically arises from performance issues, restructuring, or other circumstances where termination might otherwise be considered. The document includes essential elements such as the resignation date, final entitlements calculation, confidentiality requirements, and property return arrangements. It serves as a crucial legal record while protecting both parties' interests under Australian workplace legislation, particularly the Fair Work Act 2009.

What sections should be included in a Resignation In Lieu Of Termination Letter?

1. Letter Header: Company letterhead, date, and formal addressing to the employee including their full name and position

2. Opening Statement: Reference to previous discussions and confirmation of the mutual agreement for resignation in lieu of termination

3. Effective Date: Clear statement of the last day of employment

4. Resignation Confirmation: Explicit statement that the employee is voluntarily resigning from their position

5. Final Entitlements: Detail of all final payments including salary, accrued leave, and other entitlements

6. Company Property: List of company property to be returned and deadline for return

7. Confidentiality: Reminder of ongoing confidentiality obligations

8. Reference Provision: Statement about the type of reference that will be provided

9. Closure: Professional closing statement with signature blocks for both parties

What sections are optional to include in a Resignation In Lieu Of Termination Letter?

1. Non-Disparagement: Mutual agreement not to make negative statements about each other, included when there's potential for reputational concerns

2. Release of Claims: Mutual release of potential legal claims, included when there's higher risk of future disputes

3. Ongoing Benefits: Details of any benefits that will continue post-employment, such as health insurance coverage periods

4. Post-Employment Restrictions: Reference to existing non-compete or non-solicitation obligations, included when applicable

5. Assistance with Transition: Details of any handover requirements or transition period, included when knowledge transfer is critical

6. Legal Review Acknowledgment: Statement confirming the employee's opportunity to seek legal advice, included in higher-risk situations

What schedules should be included in a Resignation In Lieu Of Termination Letter?

1. Final Payment Calculation: Detailed breakdown of all final payments including leave entitlements, pro-rata payments, and any special arrangements

2. Company Property List: Itemized list of company property to be returned

3. Existing Contractual Obligations: Summary of relevant ongoing obligations from the employment contract that survive termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Termination Letter

Sector

Cost

Free to use
Relevant Industries

Professional Services

Financial Services

Technology

Healthcare

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Chief Executive Officer

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Executive Assistant

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Industries
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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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