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General Counsel → Employment law → Ending employment: common law
Overview — Ending employment: common law

Anthony Forsyth, Consultant, Corrs Chambers Westgarth

Contracts of employment can lawfully be brought to an end by one party giving appropriate notice to the other. The amount of notice required for termination may be derived from:

  • the express agreement of the parties;

  • statute;

  • industrial instrument; or

  • from a term implied by law.

The only categories of contracts that are not terminable by notice are those which are expressed to operate for a fixed period of time, or pending the occurrence of a specific contingency. Termination without notice will constitute wrongful dismissal at common law, unless it can be shown to be justified by reason of repudiatory breach by the other party.

See Termination on notice (common law and statutory notice entitlements).

Under the common law, both employers and employees may have remedies for wrongful termination of employment (when the employer is the party terminating, this is known as “wrongful dismissal”).

See Common law action for wrongful termination.

In certain situations, an employer will have the right to dismiss an employee summarily, so that the employee will not have any wrongful dismissal claim.

See Summary dismissal.

Conduct by one party to the employment contract that is substantially inconsistent with that party’s contractual obligation(s) may constitute a repudiation of the contract — entitling the other party to end the contract immediately.

See Repudiation of employment contracts.

Employees may have certain contractual entitlements in the event that their positions are made redundant by the employer — ie the right to notice, and/or redundancy pay.

See What is redundancy?

When there is a transfer of business, employees normally cannot be transferred from one employer to an-other as you would a chattel. However, where there is a share sale, there is no change of employer, and the existing employment contracts will remain unchanged.

See Effect of transfer of business on employment contracts.

It is important to note that, in respect of each of the above areas where common law rules may be applicable, employees may also have statutory rights under:

  • the unfair dismissal and unlawful termination provisions of the Fair Work Act 2009 (Cth): Pt 3-2 and s 772 ;

  • the general protections provisions: Pt 3-1 ; and

  • the National Employment Standards: Pt 2-2 .

See Other forms of termination of employment (frustration, abandonment and bankruptcy/liquidation).




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