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COVID-19 has had a lasting impact on many jobs and businesses, and even as we progress through 2025, losing a job remains an extremely stressful experience for many Australians.
From the 1st of January 2025, terminated employees may be asked to provide an Employment Separation Certificate when applying for government income support (also known as Centrelink payments). If you have lost your job and wish to apply for unemployment benefits, ask your employer for an Employment Separation Certificate. Likewise, if you are an employer who has had to let an employee go, you should provide an Employment Separation Certificate to your terminated employee.
This article will give you the lowdown on Employment Separation Certificates – what they are, what you need to do if a former employee asks for one, and how you can provide them as an employer in today’s digital and regulatory environment.
Employment Separation Certificates
An Employment Separation Certificate is a Services Australia Form that outlines the essential details about a former employee’s time with your business. It typically covers:
- The period of their employment
- The reason for the separation – this could be due to genuine redundancy because of a shortage of work, a contract coming to an end, unsatisfactory performance, misconduct, or resignation
- The employee’s average weekly wage
- Details of their final pay and any related entitlements, such as accrued annual leave or redundancy pay
When Do You Need To Provide An Employment Separation Certificate?
The primary purpose of an Employment Separation Certificate is to assist Services Australia in assessing your claim for income support accurately, ensuring that individuals receive the correct amount in benefits.
In most cases, you will be asked to complete an Employment Separation Certificate once an employee’s engagement with your business ends, irrespective of the reason. However, there are circumstances when an employee who is still working for you may also request the certificate – for instance, if their work hours have been significantly reduced or if their employment status has changed from full-time to casual.
It’s always a good idea to have your employees’ information readily accessible and stored in a clear, easy-to-understand format. This will save you the headache of rummaging through records when you need to complete an Employment Separation Certificate. Remember, it is a legal requirement to retain employee records for 7 years under section 535 of the Fair Work Act 2009. To further help manage your records and understand your obligations, consider reading our guide on Employment Contracts.
Given the evolving nature of employment laws and digital record keeping in 2025, maintaining accurate and up-to-date employment documents is more crucial than ever. Regularly reviewing your HR policies and embracing digital tools for record management can help ensure that any Employment Separation Certificate is completed promptly and correctly. For further insights on best practices in employment law, visit our Employment Law section.
Do Casual Employees Need A Separation Certificate?
If you receive a request to produce an Employment Separation Certificate from a casual employee, the same rules apply. You must produce the certificate and provide it to the appropriate authority.
Additionally, you might also receive a request for an employee’s information directly from Centrelink.
How Do I Provide An Employment Separation Certificate?
Employers can now submit an Employment Separation Certificate online using the updated Centrelink Business Online Services platform, which has been enhanced for improved security and ease of use in 2025. For detailed information, you can visit Services Australia’s help for employers page or follow their step-by-step guide to submitting an Employment Separation Certificate online.
If you are unable to use Centrelink Business Online Services for any reason, you can complete the Employment Separation Certificate form and provide a hard copy to the employee. The Department of Human Services also accepts faxed copies of the form.
Do You Have To Provide An Employment Separation Certificate?
Yes.
Once you receive a request for an Employment Separation Certificate – whether from an employee, former employee, or directly from Centrelink – you must produce the certificate within 14 days.
What’s The Difference Between Separation And Termination Of Employment?
Understanding the difference between separation and termination of employment can sometimes be confusing.
Separation is a blanket term that covers any scenario in which either an employer or an employee decides to end the employment relationship – whether voluntarily or involuntarily. Simply put, employees leave a job either by their own choice or because they are asked to leave, the latter being referred to as termination of employment.
Examples of voluntary separation may include:
- Retirement
- Pursuing better opportunities or accepting another job offer
- Job dissatisfaction
- Other significant changes in personal circumstances
In contrast, involuntary separation, or termination, may involve scenarios such as:
- Termination for cause – for example, due to inadequate capacity, poor performance, or misconduct
- Redundancy
- A fixed-term or temporary contract coming to an end
It is important to note that employees are protected from unfair dismissal by the Fair Work Act 2009 (Cth). Find out more about the ins and outs of unfair dismissals in our article here.
Need Help With Employment Separation Certificates?
If you need help providing an Employment Separation Certificate to an employee or former employee, give us a call on 1800 730 617 or send us an email at team@sprintlaw.com.au for a free, no-obligations chat. Our team of friendly and experienced lawyers are here to guide you through your employment law obligations and ease your concerns.
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