Unemployment can be very stressful since bills and living expenses don’t automatically disappear when you lose your source of income. If you become unemployed, you may be eligible to receive government assistance until you find another job.
However, as of the 1st of January, terminated employees may be required to provide an Employment Separation Certificate when applying for unemployment benefits.
In this article, we’ll explain what an employment separation certificate is, its purpose, whether employers are required to provide them, how to obtain an employment separation certificate and answers to other frequently asked questions.
Read along!
Table of Contents
What is an Employment Separation Certificate?
Centrelink defines employment separation certificates as documents that employers provide to their employees after they have ended their employment. As an employee, you should be aware that you have to request the certificate from your employer.
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What information is included in an employment separation certificate?
Employment separation certificates contained basic details about an employee’s employment including the following:
- Employee details, such as their name, address and date of birth
- Details about their employer, such as their business name, address and ABN
- Details regarding the position they were employed in
- Their employment period
- The reason they have separated from their employment such as redundancy, termination for misconduct, the end of their employment contract
- How much the employee received in their final payment
- Whether they received any leave entitlements or final gross redundancy when their employment was terminated, and the amount they received or will receive
What is the use of an Employment Separation Certificate?
Employment Separation Certificate records the employment details of former employees, to allow them to apply for certain benefits through Centrelink. They assist Centrelink in determining the amount of unemployment benefits that an individual should be paid while they’re unemployed and between jobs.
Employment certificates are primarily used when an employee has been terminated. However, it can also be used if an employee’s hours have been reduced or their employment type has changed from full-time to casual.
Does an employer have to give you an employment separation certificate?
An employer is only sometimes required to provide an employment separation certificate. For instance, if a former employee asks for one, the employer needs to provide it. In addition, an employer also needs to provide it if Centrelink or another government agency request it.
If you’re an employer and receive a request to complete an employment separation certificate, you need to do so within 14 days.
How to get an employment separation certificate?
As an employer, you can obtain an employment separation certificate online from Services Australia. After downloading the form, you can fill it in using your computer, or you can print the form and fill it in manually. There are multiple ways that an employment separation certificate can be submitted. These include the following:
- Employers can submit employment separation certificates using Service Australia’s Business Hub
- If an employer is unable to use the Business Hub, they can fill in the employment separation certificate form and then provide it to the employee
- Employers can fax the completed form to Service Australia using the fax number 132 115
What happens if your employer won’t provide you with an Employment Separation Certificate?
If your employer refuses to give you an employment separation certificate, your claim for benefits such as JobSeeker Payment or Youth Allowance may be rejected. Some employers can be difficult and may refuse to complete the form, or they may fill it out do not incorrectly.
If you’re unable to obtain the certificate through no fault of your own, your benefits shouldn’t be delayed or refused.
You should inform Centrelink as to the reason you cannot provide the certificate so that they can take the following steps:
- They can contact your employer directly, or
- They can grant your payment and obtain the necessary information later
As an employee, you should also be aware that when you’re unable to obtain an employment separation certificate from your employer, you can provide Centrelink with the required information using an alternative method.
For instance, you could provide Centrelink with a payslip that contains the amount you received in your last payment from your employer, which includes termination or leave payments you received alongside a letter from your employer.
You must contact Centrelink prior to submitting your claim if you have been unable to obtain an Employment Separation Certificate from your employer.
Do I need an employment separation certificate for Centrelink?
As an employee, it’s important to note that you can still apply for Centrelink benefits if you’re unable to provide an employment separation certificate. However, Centrelink will only accept this if it is due to no fault of your own that you were unable to obtain an employment separation certificate.
Under these circumstances, Centrelink should contact your employer directly or issue your payment and obtain the required information later.
How to ask for an employment separation certificate?
If your employer didn’t provide you with an employment separation certificate when your employment was terminated, you could ask your employer to provide you with one through email, phone or in person.
Conclusion
If you’re an employer and still uncertain about your obligations when it comes to providing employment separation certificates, you should hire a lawyer for legal advice to stay legally compliant.
Alternatively, if you’re an employee who has been terminated and need help determining your next step, you can also speak to a lawyer for advice.
