Issuing Certificates Of Employment: Employer’s Legal Obligations In Australia

When an employee leaves your business, there’s usually a flurry of handover tasks, payroll checks and final paperwork. One document that often raises questions is the “certificate of employment”. Add to that the separate “Employment Separation Certificate” required for some government claims, and it’s easy to see why HR teams and small business owners want clear, practical guidance.

In Australia, these two documents serve very different purposes. One is a general reference you can provide as a courtesy. The other is a formal form used by Services Australia (Centrelink) and, in some situations, you must provide it within a set timeframe.

In this guide, we’ll explain the difference between a certificate of employment and an Employment Separation Certificate, when each is needed, what to include, and how to set up an easy process in your business so you stay compliant and support departing staff without hassle.

Certificate Of Employment vs Employment Separation Certificate: What’s The Difference?

These terms are sometimes used interchangeably, but they are not the same document.

Certificate of Employment (general employment letter)

This is a simple letter on your letterhead confirming employment details. It’s typically used for reference checks, rental applications or visa processes.

It’s not mandated by law. However, many businesses choose to provide one on request because it helps former staff and reflects well on your organisation.

A straightforward certificate of employment usually includes:

• Employee’s full name
• Position(s) held (and optionally a short description of duties)
• Employment period (start and end dates)
• Status (full-time, part-time or casual)
• Company details and an authorised signature
• Reason for separation (optional – include only if appropriate and accurate)

Employment Separation Certificate (ESC)

This is a specific Services Australia form used to assess a former employee’s eligibility for government payments (for example, JobSeeker Payment). It asks for precise separation details including dates, hours, reason for separation and any final payments.

Key points about the ESC:

• It is only relevant if the person is/was an employee. It does not apply to independent contractors or suppliers.
• It is generally required if the former employee is claiming certain Services Australia payments and Services Australia (or the individual) requests it.
• When requested, you must provide the completed ESC within 14 days.

While your business is not required to proactively issue an ESC to every leaver, you must complete one within the timeframe when asked by Services Australia or the ex-employee for the purpose of a claim. For a deeper dive, see our guide to Employment Separation Certificates.

When Do You Need To Issue Each Document?

When to issue a certificate of employment

There’s no legal obligation to create a general certificate of employment. That said, it’s good practice to provide one on request after employment ends, especially where the employee needs to show work history to a future employer, a landlord or a visa authority.

When to issue an Employment Separation Certificate

You must complete and provide an ESC within 14 days if:

• Services Australia requests it; or
• your former employee requests it to support a Services Australia claim.

This requirement applies across Australia. It covers full-time, part-time and casual employees. If the person worked as an independent contractor (for example, invoicing via an ABN and not employed by you), you would not complete an ESC for them because they were not your employee.

Who is the “employer” for the ESC?

• Direct employees: The legal employer (your business) completes the ESC.
• Labour hire arrangements: The labour hire agency, as the employer, completes the ESC, not the host business where the work was performed.

What Information Does The Employment Separation Certificate Require?

The ESC asks for factual employment and separation details, such as:

• Employee and employer details
• Employment period (start and end dates) and the date paid to
• Usual hours worked per week
• Reason for separation (e.g. resignation, redundancy, dismissal, end of contract, casual employment ended)
• Final payments made (e.g. unused annual leave, redundancy pay, payment in lieu of notice)

It’s important the information is complete, accurate and neutral. Stick to facts rather than commentary. If you’re unsure about how a particular situation should be described (for example, a performance dismissal vs end of probation), it’s sensible to seek legal guidance before finalising the document.

Final payments can be a common sticking point. Make sure your payroll processes correctly capture entitlements like unused leave or redundancy amounts. If you’re working through figures, our guidance on calculating final pay can help you sense-check what should be included.

Practical Workflow: How To Handle Requests Smoothly

Setting up a simple workflow will save you time and reduce the risk of delays for your former staff.

1) Confirm status and request

• Verify that the person was your employee (not a contractor or supplier).
• Clarify what is being requested: a general certificate of employment, an ESC, or both.
• Note the request date to track the 14-day deadline for the ESC.

2) Gather payroll and employment records

• Employment dates, job title(s) and status (FT/PT/casual)
• Usual weekly hours
• Reason for separation (pick the factual category that applies)
• Final payments made, including any leave on resignation or redundancy entitlements

You are required to keep employee records for at least seven years under workplace laws. Good record-keeping is essential to complete ESCs accurately and on time.

3) Complete the correct document

• Certificate of employment: Prepare a concise letter on letterhead with the basics: name, role(s), dates, status and your contact details.
• ESC: Use the current Services Australia form and complete all fields accurately. Provide factual, neutral wording for the reason for separation.

4) Send and retain copies securely

• Provide the document via a secure method (email, post or, where available, via a relevant portal).
• Retain a copy on the employee’s file, consistent with your internal record-keeping and privacy practices.

Because you’ll be handling personal information, make sure your practices align with your Privacy Policy and that only authorised staff access these records.

Common Questions (And Clear Answers)

Do I have to provide a certificate of employment?

There’s no strict legal duty to provide a general certificate of employment, but many businesses do so on request. It’s a simple way to support former employees and maintain goodwill.

Is the Employment Separation Certificate compulsory?

Not for every leaver. However, if Services Australia or your former employee requests an ESC to support a claim, you must provide it within 14 days. If you don’t, the individual’s claim may be delayed and Services Australia may follow up with you.

Does this apply to casual employees?

Yes. The ESC requirement applies to employees of all types – full-time, part-time and casual – where the employment relationship has ended and an ESC is requested. If the person was a genuine contractor (not an employee), an ESC does not apply.

What if there’s a dispute about the reason for separation?

Use the factual category that best describes what happened (e.g. resignation, redundancy, dismissal, end of contract, casual employment ended). Avoid commentary or subjective language. If there’s a genuine dispute or a complex situation (for example, an alleged constructive dismissal), it’s worth getting advice before you finalise the form.

We can’t find all the dates. What should we do?

You should maintain accurate records of employment and termination details. If something is missing, reconstruct the records from payroll, rosters and superannuation data as best you can, and tighten your processes going forward. Document what you relied on to prepare the ESC so your file is audit-ready.

Can we email the ESC?

Yes, you can provide it by email, by post or through a relevant government portal. The key is ensuring it’s securely delivered and reaches the person or agency who requested it.

What about final payments?

List what’s been paid, such as unused annual leave, redundancy pay or any payment in lieu of notice. If you’re unsure about entitlements or timing, check your award, enterprise agreement (if any) and the Fair Work rules for final pay, and consider legal advice where needed.

Policies, Contracts And Templates To Help You Stay On Track

Having the right documents and frameworks in place makes end-of-employment admin simpler and more reliable.

• Employment Contract: Sets out role, hours, notice, confidentiality and other terms, so there’s less ambiguity at separation.
• Workplace Policies: A central place for procedures on record-keeping, privacy, references and exit processes so your team handles requests consistently.
• Privacy Policy: Explains how you handle personal information and helps guide secure storage and sharing of employee records and certificates.
• Employee Termination Documents: Checklists and letters that streamline exits, so you capture dates, reasons and final pay details needed for the ESC.
• Employment Separation Certificate: Keep the latest form and instructions handy so you can respond to requests within 14 days.

If redundancies are in play, it can also be helpful to cross-check amounts using resources like a redundancy payment guide so the figures you enter on the ESC are accurate.

Mistakes To Avoid When Issuing Certificates

• Confusing contractors with employees: The ESC is only for employees. If they invoiced you as a contractor, an ESC is not applicable.
• Missing the 14-day timeframe: Track the request date and allocate responsibility internally so deadlines aren’t missed.
• Vague or editorial reasons: Use the factual categories provided (resigned, redundancy, dismissed, etc.) without commentary.
• Incorrect final payments: Confirm what was paid (and when) before you complete the ESC. If still processing, state what has been paid to date in line with the form’s instructions.
• Poor data security: Certificates contain personal information. Follow your Privacy Policy and limit access to authorised staff.
• Out-of-date templates: Keep the current ESC form and your certificate-of-employment template updated with the right signatories and contact details.

Key Takeaways

• A certificate of employment is a general letter confirming employment details; it’s not legally required, but it’s helpful and commonly provided on request.
• An Employment Separation Certificate (ESC) is a specific Services Australia form used to assess government payment claims; if requested, you must provide it within 14 days.
• The ESC applies to employees (full-time, part-time and casual). It does not apply to independent contractors or suppliers.
• Complete ESCs with accurate, factual information, including separation dates, reason for separation and final payments.
• Good processes, clear Employment Contracts and practical Workplace Policies make end-of-employment tasks faster and reduce risk.
• If you’re unsure how to describe a complex separation or calculate entitlements for the form, it’s wise to get advice before you submit.

If you’d like help setting up a clean end-of-employment process or reviewing your documents, reach out to our team at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.