When and how to issue a Separation Certificate
At some point in time, the employment relationship between an employee and an employer will come to an end. Employers must provide a Separation Certificate if requested. It might seem like a small thing, but an employer can potentially get into serious trouble for failing to provide a former employee with a Separation Certificate.
What is a separation certificate?
A Separation Certificate is an Australian Government form that, when completed, gives basic details about an employee who has left your employment, decreased their working hours or changed from full time to casual work. These details are used by Centrelink to determine a person’s eligibility for a range of benefits.
Who can request a separation certificate?
You do not have to issue a Separation Certificate automatically when an employee’s employment ceases.
However, a request for a Separation Certificate may come from the Department of Human Services or an employee or former employee.
You need to provide the Separation Certificate “as soon as practicable” after the request and a severe penalty can be applied for non-compliance.
Obtaining a separation certificate form
You can download a copy of an Employment Separation Certificate and complete it on your device or print it and complete it by hand.
Alternatively, you can provide the required information on your business letterhead. You, or a pay officer you have authorised, should sign the certificate and keep a copy for your own records.
The easiest way to complete and submit an Employment Separation Certificate is online through Centrelink Business Online Services.
You need to be registered with Centrelink Business Online Services to submit an Employment Separation Certificate online. Information on how to register can be found on the Department of Human Services website.
If you wish to discuss this or any other workplace issue, contact a NatRoad industry advisor on (02) 6295 3000 or email [email protected].