Termination & Separation Policy

Policy Owner: People & Culture

Approved By: Chief Operating Officer

Effective Date: 1 January 2026

Review Date: 1 January 2027

Classification: Internal — Restricted

Version: 1.0

1. Purpose

This policy establishes the Company's approach to managing the termination and separation of employment, ensuring compliance with the Fair Work Act 2009 (Cth), the National Employment Standards (NES), the applicable modern award, and principles of procedural fairness. It covers voluntary resignations, employer-initiated terminations (including redundancy and dismissal), and the associated administrative processes.

2. Scope

This policy applies to all employees of ASI AI Solutions (permanent full-time, permanent part-time, fixed-term, and casual). Contractor and consultant separations are managed under the terms of their engagement agreements.

3. Types of Termination

Type	Description	Key Reference
Resignation	Employee-initiated termination. Employee provides notice per their contract.	Contract; NES s 117
Termination with notice	Employer-initiated termination for reasons including performance, conduct, or operational requirements.	NES s 117
Summary dismissal	Immediate termination without notice for serious misconduct.	FW Reg 1.07; NES s 123
Redundancy	Position is no longer required due to operational changes. Genuine redundancy per FW Act s 389.	NES ss 119, 389
End of fixed-term contract	Employment ends on the agreed date.	Contract; FW Act s 386
During probation	Termination during the probationary period with reduced notice (1 week).	Contract
Mutual agreement	Both parties agree to end the employment relationship.	Contract

4. Notice Periods

4.1 Minimum Notice (NES s 117)

Period of Continuous Service	Minimum Notice
Not more than 1 year	1 week
More than 1 year but not more than 3 years	2 weeks
More than 3 years but not more than 5 years	3 weeks
More than 5 years	4 weeks

An additional 1 week of notice applies if the employee is over 45 years of age and has completed at least 2 years of continuous service (NES s 117(3)).

The employee's contract may provide for longer notice periods; the longer of the contractual or NES notice period applies.

4.2 Payment in Lieu of Notice (PILON)

The Company may elect to make a payment in lieu of notice (in whole or in part) rather than requiring the employee to work the notice period (NES s 117(2)). PILON is calculated on the employee's full rate of pay (including incentive-based payments and bonuses, overtime, loadings, and monetary allowances — see FW Act s 90 and Fair Work Regulations 2009 reg 2.03A).

4.3 Garden Leave

The Company may, at its discretion, direct an employee on notice to remain away from the workplace during all or part of the notice period while continuing to receive full pay and entitlements. The employee remains employed and bound by their contractual obligations during garden leave.

5. Redundancy

5.1 Genuine Redundancy

A redundancy is genuine if the employer no longer requires the employee's job to be performed by anyone because of changes in operational requirements, and the employer has complied with applicable consultation obligations in the modern award (FW Act s 389).

5.2 Redundancy Pay (NES s 119)

Period of Continuous Service	Redundancy Pay
At least 1 year but less than 2 years	4 weeks
At least 2 years but less than 3 years	6 weeks
At least 3 years but less than 4 years	7 weeks
At least 4 years but less than 5 years	8 weeks
At least 5 years but less than 6 years	10 weeks
At least 6 years but less than 7 years	11 weeks
At least 7 years but less than 8 years	13 weeks
At least 8 years but less than 9 years	14 weeks
At least 9 years but less than 10 years	16 weeks
At least 10 years	12 weeks

Redundancy pay is based on the employee's base rate of pay for ordinary hours of work.

5.3 Consultation

Before making a definite decision about redundancy, the Company will consult affected employees (and their representatives, if requested) in accordance with the consultation clause of the applicable modern award. Consultation will include:

Advising the employee of the proposed change and reasons for it.
Providing an opportunity for the employee to respond.
Considering redeployment opportunities within the Company.
Considering measures to mitigate the adverse effects of the change.

5.4 Redeployment

The Company will make reasonable efforts to redeploy affected employees to suitable alternative positions. A redundancy is not genuine if the employee could have been reasonably redeployed within the employer or an associated entity (FW Act s 389(2)).

6. Summary Dismissal (Serious Misconduct)

The Company may terminate employment without notice or payment in lieu of notice where the employee has engaged in serious misconduct as defined in regulation 1.07 of the Fair Work Regulations 2009.

Serious misconduct includes:

Wilful or deliberate behaviour inconsistent with the continuation of the employment contract.
Conduct that causes serious and imminent risk to the health or safety of a person, or the reputation, viability, or profitability of the employer's business.
Theft, fraud, or assault.
Being intoxicated at work by alcohol or drugs.
Refusal to carry out a lawful and reasonable instruction consistent with the employee's contract.

Before summary dismissal, the Company will (except in cases of immediate risk to safety):

Notify the employee of the allegations in writing.
Provide the employee with an opportunity to respond (usually within 24–48 hours).
Allow the employee to have a support person present at any meeting.
Consider the employee's response before making a final decision.

7. Performance Management Process

7.1 Overview

Before terminating employment for unsatisfactory performance (as distinct from serious misconduct), the Company will follow a structured performance management process to give the employee a genuine opportunity to improve.

7.2 Steps

Informal discussion: Manager discusses specific concerns with the employee, provides clear feedback, and agrees on expectations and support.
First formal warning: If performance does not improve, a written warning is issued documenting the concerns, expected standards, and timeframe for improvement.
Performance Improvement Plan (PIP): A formal PIP is developed (see template below) with specific, measurable goals, support measures, a review timeline (typically 4–8 weeks), and clear consequences of failure to improve.
Final written warning: Issued if the PIP goals are not met. The employee is advised that further failure to improve may result in termination.
Termination: If sustained improvement is not achieved, employment may be terminated with notice.

At each step, the employee will be given the opportunity to respond and may bring a support person to any meeting. All steps will be documented in writing.

7.3 Performance Improvement Plan (PIP) Template

Performance Improvement Plan

Employee:

[Name]

Position:

[Title]

Manager:

[Manager Name]

PIP Start Date:

[Date]

PIP End Date:

[Date — typically 4–8 weeks]

Review Meetings:

[Weekly / Fortnightly — dates]

Performance Concerns (specific, evidence-based):

[Describe specific performance issues with examples, dates, and impact. Reference prior feedback or warnings.]

Expected Standards:

[Describe the specific, measurable improvements required to meet the role expectations.]

Goal	Measure of Success	Support Provided	Review Date	Outcome

Consequences:

[If the required improvements are not achieved by the end of the PIP period, the Company may take further action up to and including termination of employment.]

Employee Acknowledgement:

[I acknowledge receipt of this PIP and understand the expectations and consequences. I have been given the opportunity to respond and to have a support person present.]

Employee Signature & Date

Manager Signature & Date

8. Exit Interview

The Company will offer an exit interview to all departing employees (voluntary resignations and, where appropriate, involuntary separations). Exit interviews are conducted by the People & Culture team and are an opportunity to provide candid feedback.

Exit Interview Template

Exit Interview Questions

Employee:

[Name]

Last Day:

[Date]

Position:

[Title]

Length of Service:

[Duration]

Interviewer:

[P&C Name]

Reason for Leaving:

[Category]

What prompted your decision to leave?
What did you enjoy most about working at ASI AI Solutions?
What aspects of the role or workplace could be improved?
How would you describe the management and leadership you experienced?
Did you feel supported in your professional development and career growth?
Were you treated with respect and fairness throughout your employment?
Would you recommend ASI AI Solutions as an employer? Why or why not?
Is there anything else you would like to share?

Exit interview responses are treated confidentially and used in aggregate to improve workplace culture, retention, and employee experience. Individual responses will not be attributed without the employee's consent.

9. Final Pay Calculation

The Company will pay all outstanding entitlements within 7 days of the date of termination, or on the next regular pay cycle, whichever is sooner. Final pay will include:

Component	Details
Salary/wages	Wages earned up to and including the last day of employment.
Accrued annual leave	All accrued but untaken annual leave, including leave loading (17.5%), paid out regardless of reason for termination (NES s 90).
Accrued long service leave	Pro-rata long service leave where applicable under the Long Service Leave Act 1955 (NSW).
Notice period (PILON)	Payment in lieu of notice, if applicable. Calculated on full rate of pay.
Redundancy pay	As per NES s 119, if applicable.
Superannuation	Superannuation on all applicable components of final pay.
Deductions	PAYG withholding. Any authorised deductions (e.g., salary sacrifice). Overpaid leave (by written agreement only — not deducted without employee consent per FW Act s 324).

A detailed final pay breakdown will be provided to the employee with their final payslip. An employment separation certificate will be issued upon request or automatically where the employee may be eligible for Centrelink benefits.

10. Return of Company Property

On or before the last day of employment, the employee must return all Company property, including:

Laptop, monitor, and peripherals.
Mobile phone (if Company-provided).
Building access card, keys, and parking access.
Credit cards and fuel cards.
Documents, files, and records (physical and electronic).
Any copies of Confidential Information (in any format).

IT access (email, systems, VPN) will be revoked on the last day of employment (or immediately upon summary dismissal). Data on Company devices will be wiped in accordance with the IT Asset Disposal Policy.

11. Unfair Dismissal Protections

Employees may be protected from unfair dismissal under Part 3-2 of the Fair Work Act 2009 if they have completed the minimum employment period (6 months, or 12 months if the employer is a small business employer with fewer than 15 employees at the time of dismissal) and their annual earnings are below the high income threshold (currently $175,000 as at 1 July 2025) or they are covered by a modern award or enterprise agreement.

A dismissal is unfair if it is harsh, unjust, or unreasonable, and is not a case of genuine redundancy or consistent with the Small Business Fair Dismissal Code (FW Act s 385). The Company will ensure all dismissals comply with applicable legal requirements and are procedurally fair.

11.1 Small Business Fair Dismissal Code

Although ASI AI Solutions currently has approximately 150 employees and is not a small business employer, this section is included for reference. A small business employer (fewer than 15 employees at the time of dismissal) complies with the Small Business Fair Dismissal Code if:

The employer believes on reasonable grounds that the employee's conduct is sufficiently serious to justify immediate dismissal (for summary dismissal).
Or, the employer has given the employee a warning about their conduct/performance and a reasonable opportunity to improve, and the employee fails to improve (for other dismissals).

12. Responsibilities

Role	Responsibility
Managers	Manage performance issues early and document appropriately. Consult P&C before initiating termination. Ensure procedural fairness. Conduct exit handover.
People & Culture	Advise on process and legal compliance. Manage documentation. Process final pay and separation certificates. Conduct exit interviews. Maintain termination records.
IT	Revoke access on the last day. Arrange return and wiping of devices. Ensure data preservation where required for legal holds.
Finance / Payroll	Calculate and process final pay. Issue PAYG payment summaries. Manage superannuation finalisation.
General Counsel	Advise on legal risk for complex terminations. Review deeds of release where applicable.

13. Review

This policy will be reviewed annually or when changes to the Fair Work Act 2009, NES, or applicable modern awards affect termination entitlements or processes. The next review is scheduled for 1 January 2027.