How To Accept An Employee’s Resignation Letter In Australia

Contents

When an employee resigns, it can feel like the “hard part” is over once you’ve received their resignation email or letter. But from an employer perspective, there’s still an important step that helps you stay organised, compliant, and on the front foot: sending an acceptance of resignation letter.

For small businesses, this simple document can make a big difference. It creates a clear record of what was agreed (especially around the employee’s final day, notice period, and final pay), and it helps you avoid miscommunication that can easily turn into disputes later.

In this guide, we’ll walk you through what an acceptance of resignation letter is, when to use it, what it should include in Australia, and the common mistakes employers should avoid.

What Is An Acceptance Of Resignation Letter (And Do You Need One)?

An acceptance of resignation letter is a written confirmation from you (the employer) that you’ve received the employee’s resignation and you acknowledge key details, such as:

  • the date you received the resignation
  • the employee’s final day of work
  • how notice will be worked (or paid out)
  • what happens next (handover, return of property, final pay, etc.)

Is it legally mandatory in every case? Not always. But it’s often practically essential, especially if there is any uncertainty about notice, the final day, or whether you’re paying out notice instead of having the employee work it.

Think of it like a “receipt” plus a “roadmap”. It confirms you’ve received the resignation, and it sets expectations for the offboarding process.

Why It Matters For Small Business Employers

In a small team, offboarding is rarely just admin. It affects rosters, customers, handovers, access to systems, and workload. A clear acceptance letter helps you:

  • reduce confusion (and the risk of “I thought my last day was…” disagreements)
  • document what notice applies and how it will be handled
  • support accurate final pay calculations
  • show good process if issues are later raised (internally or externally)

When Should You Send An Acceptance Of Resignation Letter?

As a general rule, send the acceptance of resignation letter as soon as possible after receiving the resignation-ideally within 24-48 hours.

This is especially important where:

  • the resignation was communicated verbally (and you want it confirmed in writing)
  • there’s any uncertainty about the notice period
  • the employee wants an “effective immediately” resignation
  • you don’t want the employee to work out their notice and are considering paying it out (where that’s permitted)
  • there are handover or return-of-property risks

If The Employee Resigns With Less Than Required Notice

Sometimes an employee gives less notice than required by their contract, award, enterprise agreement, or the Fair Work Act. In that case, your acceptance letter is a good place to:

  • confirm what notice was required
  • record what is being agreed as the final day (for example, you agree to an earlier date)
  • set out any practical next steps for handover

If you’re unsure what notice should apply, it’s worth checking typical resignation notice periods before you confirm dates in writing.

If You Want The Employee To Stop Working Before The End Of Their Notice

There are situations where you may prefer that the employee doesn’t work out their notice period (for example, they have access to sensitive information, client relationships, or systems). In those cases, the safest approach is to check the relevant employment contract, award/enterprise agreement and workplace policies, and then confirm the arrangement in writing.

Your acceptance letter should be very clear about whether you’re:

  • agreeing (by mutual consent) that the employee will finish up earlier than the end of the notice period, and how pay will be handled, or
  • relying on a contractual right to make a payment in lieu of notice, where that applies (and what that means in practice), or
  • putting the employee on another arrangement (such as garden leave, if applicable under their contract).

Each option has different risk considerations, so it’s worth getting advice if the situation is sensitive.

What Should An Acceptance Of Resignation Letter Include In Australia?

There’s no single mandatory “set format”, but a strong acceptance of resignation letter usually covers a core set of practical and legal points. Here’s what we recommend you include.

1. The Date You Received The Resignation

Start with a clear record of when you received the resignation (especially if the resignation was by email, chat message, or verbal). This matters because it often anchors the notice period timeline.

2. Confirmation That You Accept The Resignation

Use simple, unambiguous language. For example:

  • “We confirm we have received your resignation and accept it.”
  • “We accept your resignation from your position of .”

If the resignation is conditional or unclear, avoid “accepting” in a way that locks you into uncertainty. Instead, you can acknowledge receipt and confirm the next steps to clarify final dates.

3. The Employee’s Final Day Of Employment

This is usually the most important line in the whole document.

Clearly state:

  • the final day the employee will attend work (if different), and
  • the final date of employment (for payroll and recordkeeping purposes).

For many small businesses, aligning the final working day and final employment date keeps things clean-unless you’re paying out notice or there’s a specific reason to separate them.

4. Notice Period Details (And Whether It Will Be Worked Or Paid Out)

Your letter should confirm:

  • what notice period applies (where appropriate), and
  • whether the employee will work that notice, or the notice period will be paid out (where permitted and agreed or authorised by the contract/industrial instrument).

If the employee is not working out notice and notice will be paid out, you can refer to this clearly as payment in lieu (and confirm what it means in practice, such as cessation of duties and access to systems).

5. Final Pay Items And Entitlements

While you don’t always need to list exact dollar figures in the acceptance letter, you should confirm what the final pay will generally include, such as:

  • ordinary wages up to the final date
  • any applicable allowances or overtime owed
  • payout of unused annual leave (if applicable)
  • any notice paid out (if applicable)

Small admin gaps can create big frustration at the end of employment, so it’s smart to align your acceptance letter with the steps you’ll take when calculating final pay.

It’s also worth being clear about how you’ll handle annual leave on resignation, particularly if the employee has asked to take leave during their notice period.

6. Return Of Company Property And Access

This is a practical must-have for small businesses.

Include a short list of what must be returned (where relevant), such as:

  • laptop, phone, keys, access cards
  • uniforms or tools
  • documents and customer lists

You can also note that system access will be removed on the final day. Keep this factual and neutral.

7. Handover Expectations

If the employee is working out their notice, confirm what you expect regarding handover. For example:

  • handover notes for key tasks
  • status updates on active projects
  • introductions to clients or suppliers (if appropriate)

This isn’t about being overly strict-it’s about setting your business up for continuity.

8. Administrative Exit Steps (Optional But Helpful)

Depending on your business, you might also include:

  • exit interview details (if you run them)
  • where to send final payslips or documents
  • confirmation of the employee’s current contact details for final correspondence

Step-By-Step: How To Handle A Resignation The Right Way

If you want a simple process you can repeat every time someone resigns, this framework is a great starting point.

Step 1: Confirm The Resignation Is Clear

If the employee resigns verbally, ask them to put it in writing (email is usually fine). If they’ve resigned in writing but it’s vague (“I’m leaving soon”), ask a follow-up question to confirm the intended last day.

Step 2: Check The Employment Terms

Before you confirm anything, check:

  • the employment contract
  • any applicable award or enterprise agreement
  • your policies (if they address notice, handover, or exit requirements)

This is where having a clear Employment Contract helps, because it should set expectations around notice, duties during notice, and return of property.

Step 3: Decide Whether They Will Work Out Notice

As the employer, you’ll usually need to balance:

  • your operational needs (do you need them for handover?)
  • risk (confidential information, clients, safety, workplace issues)
  • fairness and consistency (how you’ve treated others in similar situations)

If you decide you don’t want them to work the full notice period, make sure the approach is lawful and properly documented (for example, by agreement, or where the contract/industrial instrument allows a payment in lieu arrangement).

Step 4: Send The Acceptance Of Resignation Letter

Send it in writing (email is generally appropriate). Make sure it captures the key points above, especially the final day and how notice will be handled.

Step 5: Confirm Final Pay Timing And Offboarding

Let the employee know when they can expect final pay to be processed and what needs to happen before their last day (handover, return of property, etc.).

If the resignation is happening alongside workplace performance issues or a difficult exit, consider getting advice early so you don’t accidentally create legal risk in the way you communicate the acceptance.

Common Mistakes Employers Make (And How To Avoid Them)

Most resignation disputes aren’t about the resignation itself. They’re about the details around it. Here are the issues we commonly see small businesses run into.

Accepting A Resignation Without Confirming Dates

If you “accept” without specifying the final date, you leave space for misunderstanding. This can affect payroll, rosters, and even whether the employee believes they must attend work.

Fix: Always state the final day of employment in the acceptance letter.

Mixing Up “Acceptance” With “Termination” Language

Your acceptance letter should not read like a termination letter. If you include language that suggests you’re ending the employment (rather than acknowledging the employee’s resignation), you can create confusion about who initiated the separation and why.

Fix: Keep the tone neutral and confirm you are acknowledging the employee’s resignation.

Not Documenting Payment In Lieu Properly

If the employee won’t be working out their notice period but you don’t clearly document what was agreed (and what will be paid), you can end up with disputes about whether the employee was “sent home” and what they should have been paid.

Fix: Be explicit about the arrangement and confirm the pay approach (including any payment in lieu of notice, if applicable).

Overpromising On Final Pay Details

It’s tempting to give an exact payout figure immediately. But if you’re still checking leave balances, overtime, commissions, or deductions, a rushed figure can be wrong.

Fix: Confirm what the final pay will include, and tell the employee you’ll provide a final breakdown through payroll.

Forgetting About Leave, Rosters, And Public Holidays During Notice

If the employee’s notice period crosses into a period of scheduled leave, a shutdown, or public holidays, you may need to think through how it affects pay, entitlements, and the practical final day.

Fix: Check rosters and leave calendars as soon as you get the resignation so you can confirm a clean final date.

Do You Need Any Other Documents Alongside The Acceptance Letter?

Often, the acceptance of resignation letter is only one part of a tidy offboarding process. Depending on your business and the role, you might also want to consider the following documents or steps.

Employment Contract And Workplace Policies

If you’re seeing resignations become messy or unclear, it may be a sign your employment paperwork needs tightening up. Your employment contract and policies should cover the basics, such as notice expectations, confidentiality obligations, return of property, and acceptable conduct during notice.

Final Pay Checklist

Even in a small business, a checklist helps ensure payroll is consistent and compliant. It can cover wages, leave payout, superannuation timing, and any deductions that are legally permitted.

New Starter Paperwork (So Notice Terms Are Clear Next Time)

If resignations are becoming messy or unclear, it can be a sign your onboarding documents need tightening up. Having clear notice and exit-related clauses in your employment contract (and aligned workplace policies) can make future resignations much easier to manage.

If you employ new staff regularly, it’s also useful to be across resignation notice periods, so your internal processes stay consistent across exits.

Confidentiality Reminders (Where Appropriate)

If the employee had access to sensitive information (pricing, supplier terms, customer lists, product plans), it’s reasonable to remind them of any ongoing confidentiality obligations that survive after employment ends. Keep this factual and aligned with their contract.

Key Takeaways

  • An acceptance of resignation letter is a written confirmation that you’ve received the resignation and it records the key exit details (especially the final day and notice arrangements).
  • Send your acceptance letter promptly after receiving a resignation to reduce confusion and protect your business if disagreements arise later.
  • A strong acceptance letter should clearly cover the resignation date received, final day of employment, notice period (worked or paid out), final pay inclusions, and return of company property.
  • Be careful not to accidentally use termination-style wording or confirm unclear dates-small drafting mistakes can create outsized HR and legal risk.
  • Align the acceptance letter with your offboarding process, including handover steps and ensuring final pay (including leave payouts) is calculated correctly.

If you’d like help preparing an acceptance of resignation letter process or tightening your employment documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Alex Solo

Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.

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