What is an employment separation certificate and when do I need to provide one?

As an employer, you have legal obligations when you terminate an employee. For example, if you are an employer terminating an employee, you must complete an employment separation certificate upon request. Indeed, it is important that as an employer you take such obligations seriously to avoid issues in the future. Therefore, this article will explain what this certificate is for employers who have terminated an employee, to help you understand and navigate this obligation.

What Is an Employment Separation Certificate?

An employment separation certificate is a form that Services Australia issues. Indeed, it is up to you as the employer to complete the Services Australia form within 14 days after a request. This certificate provides relevant employment information for the terminated employee. Furthermore, a completed certificate enables Centrelink to assess and pay income support payments to eligible recipients. 

An employment separation certificate includes:

• the terminated employee and employer details;
• employment details;
• the reason for separation from the company;
• the terminated employee's final gross payment;
• any unused leave payments; and
• redundancy payments.

Do Employers Have to Provide an Employment Separation Certificate?

Employers do not need to provide an employment separation certificate for every employee termination. However, if Services Australia, Centrelink or a terminated employee request one, you must provide it. Furthermore, you must complete and sign the Services Australia form within 14 days of receiving the request. Services Australia may also ask for this form if your employee decreases their work hours or changes their employment status from full time to casual. 

Key Takeaways

Centrelink will use an employment separation certificates to assess the eligibility of income support payment claims. An employer must provide an employment separation certificate if Centrelink requests.