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Termination Reasons
Termination Reasons

Termination reasons

Kavya avatar
Written by Kavya
Updated over a week ago

Employment Separation Certificates (ESC) help Services Australia to pay people the right amount from the correct date. It provided information to Services Australia about payees who have ceased employment. The data on the form provides reasons for separation, cash out of leave-in service prior to separation, payment details for unused leave on termination, redundancy and other employment termination payments.

Services Australia will use the cessation type reported via the pay event to minimise the need for payers to provide Employment Separation Certificates (ESC).

The permissible values for cessation types are as follows:

  • Voluntary Cessation – An employee resignation, retirement, domestic or pressing necessity or abandonment of employment

  • Illness – An employee resignation due to a medical condition that prevents the continuation of employment, such as for illness, ill-health, medical unfitness or total permanent disability

  • Deceased –The death of an employee

  • Redundancy – An employee-initiated termination of employment due to a genuine bonafide redundancy or approved early retirement scheme

  • Dismissed – an employee-initiated termination of employment due to dismissal, inability to perform the required work, misconduct or inefficiency

  • Contract Cessation – The natural conclusion of a limited employment relationship due to contract/engagement duration or task completion, seasonal work completion, or to cease casuals that are no longer required.

  • Transfer – The administrative arrangements performed to transfer employees across payroll systems, move them temporarily to another employer (machinery of government for public servants), transfer of business, move them to outsourcing arrangements or other such technical activities.

If you have any feedback or questions, please email us at support@payroo.com.au

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