What Is The Purpose Of An Employment Separation Ticket?

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What Is The Purpose Of An Employment Separation Ticket?

June 17, 2021         openlegal

An ESC is a Services Australia Form outlining the general details regarding a former employee’s employment. The details included in the form are the employees average weekly wage and how long they were employed for. The form also includes the reason for separation of employment which can include a multitude of reasons such as redundancy. The last detail included is what their final pay was and their entitlements such as accrued annual leave.

When Should An Employment Separation Ticket Be Provided?

The overarching purpose of the Services Australia Form is to assess the criteria supporting your claim for income support, as well as, ensuring that individuals receive the correct amount of their payments. 

Regardless of the reason, when an employee’s time comes to an end at a company, they may be asked to fill out an Employment Separation Ticket. There are other reasons as to why an employee may ask for an ESC whilst still working including their work hours being reduced or if their employment has changed from full-time to casual work. To avoid headaches in the future, an employer must always have an employee’s information in a clear format and easily accessible. Having employee information readily available avoids time consuming issues such as digging through records. It is important for an employee to keep employee records for 7 years under section 535 of The Fair Work Act 2009.

How Is An Employment Separation Certificate Provided? 

An ESC can be submitted on Centrelink’s website under the business online services section. If you are not able to access Centrelink’s website for any reason, then you can always fill out The ESC and hand it to the employee.

Do I Have To Provide An Employment Separation Certificate?

Yes, you must always provide an Employment Separation Certificate. Whether receiving the request from an employee, former employee or Centrelink, you are given 14 days to hand them the Employment Separation Certificate. 

What Is The Difference Between Separation And Termination Of Employment?

Separation covers any scenario whereby an employee either voluntarily or involuntarily steps down from employment. Keeping in mind that there are only two reasons an employee can leave a job which is either voluntary or they are asked to leave. More specifically, being asked to leave refers to termination of employment. 

Voluntary separation may include retirement, a job elsewhere, dissatisfaction with their job or certain circumstances. On the other hand, involuntary separation may be termination by cause which could have resulted from instances such as misconduct. Involuntary separation also may arise due to redundancy or an employee’s contract expiring. Employees are protected by the Fair Work Act 2009 (Cth) from unjustified dismissal.

Key Takeaways

An Employment Separation Certificate allows Service Australia to evaluate an individual’s claim for income support and ensure that payments are made correctly. An ESC can be submitted on Centrelink‚Äôs website under the business online services section. An employer must always provide whoever requests an Employment Separation Certificate.

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