What is an Employment Separation Certificate, and When Do I Need to Provide One?

Summary

• An employment separation certificate is a form issued by Services Australia that employers must complete upon request by Services Australia, Centrelink, or a former employee, providing key employment details to assist in assessing the former employee’s eligibility for income support payments.
• Employers are not required to issue a certificate for every termination, but must do so within 14 days of receiving a request, and the obligation can also arise where an employee reduces their hours or changes employment status rather than being terminated outright.
• The certificate must include details such as the reason for separation, gross weekly wage, final payment, unused leave entitlements, redundancy payments, and any amounts still owed to the former employee.
• This article is a guide to employment separation certificates for employers operating in Australia, produced by LegalVision, a commercial law firm.
• LegalVision specialises in advising clients on employment law and employer compliance obligations.

Tips for Businesses

Maintain up-to-date and accurate payroll records for all employees so that you can respond promptly to any certificate request within the 14-day deadline. Use the Services Australia Business Hub portal for efficient submission. Where an employee’s hours or status change rather than their employment ending, ensure the certificate reflects this accurately in the reason for separation field.

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On this page

• What is an Employment Separation Certificate?
• Do Employers Have to Provide a Certificate?
• Tips for Accurately Completing the Form
• Key Takeaways
• Frequently Asked Questions

An employment separation certificate is a form issued by Services Australia that provides Centrelink with the employment details needed to assess a former employee’s eligibility for income support payments. As an employer, you must provide one when Services Australia, Centrelink, or a former employee requests it. This article will explain employment separation certificates, helping you understand and fulfil this obligation.

What is an Employment Separation Certificate?

An employment separation certificate (‘a certificate’) is a form that Services Australia issues. This certificate provides relevant employment information for terminated employees. Moreover, a properly completed certificate enables Centrelink to accurately assess and provide income support payments to individuals who qualify for assistance.

A certificate must include:

• the terminated employee and employer details;
• employment details;
• the date the employment ended;
• the gross weekly wage;
• any pending amount owed by the former employer;
• 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 a Certificate?

Employers do not need to provide a certificate for every employee termination. However, if Services Australia, Centrelink or a terminated employee requests one, you must provide it.

An employment separation certificate may also be required in circumstances that do not result in termination of employment. Services Australia may ask for this form if your employee decreases their work hours or changes their employment status from full-time to casual. The same process will apply; however, when completing the certificate, you would provide more information on the change in employment status within the ‘reason for separation’.

Tips for Accurately Completing the Form

To ensure the form is completed accurately:

1. Verify Information: Ensure you review and cross-check all details provided on the form, including specific dates, payment amounts, and the stated reasons for termination. This step is crucial to maintain data integrity and avoid potential errors or discrepancies.
2. Timely Submission: Submit the form within the required 14-day period.
3. Use the Online Portal: Utilise the Services Australia Business Hub for efficient submission and record-keeping.

Employment Essentials Factsheet

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Key Takeaways

Centrelink will use employment separation certificates to assess the eligibility of income support payment claims. If Centrelink requests it, an employer must provide an employment separation certificate. It is best practice to have the employee’s records and relevant information readily available if you are required to submit an employment separation certificate. You are not required to issue a separation certificate to all terminated employees; however, you may be required to complete one at the request of the former employee, Services Australia, or Centrelink. Additionally, you should be mindful that the deadline to submit the separation certificate is within 14 days from the date of the request.

If you need help completing an employment separation certificate, LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced employment lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 1300 544 755 or visit our membership page.

Frequently Asked Questions