🛑 Can you terminate an employee who hasn’t been able to work?

🛑 Can you terminate an employee who hasn’t been able to work for months?

Yes — in some cases, you can. And if you don’t act, it could cost your business more than you think.

Here’s what employers should know:
✅ Under the Fair Work Act, you may be able to lawfully terminate an employee’s employment if they’ve been unable to work for 3 consecutive months (or 3 months cumulatively) in a 12-month period — provided proper process is followed and protections are considered.
✅ If an employee has been receiving workers’ compensation for 12 months and still hasn’t returned to work, you may also have grounds to lawfully terminate their employment — depending on medical capacity, consultation, and state legislation.

⚠️ But here’s the catch:
If you don’t terminate employment after this time — even if the employee isn’t working — they may continue to accrue annual leave and long service leave, which can become a significant financial liability.
We regularly see businesses hit with tens of thousands in accrued leave payouts, simply because they didn’t know when or how they could legally end employment.

💬 If you’re unsure what your rights are — or how to approach a complex or sensitive case — Track HR can help you:
✔️ Understand your legal options
✔️ Follow a fair and compliant termination process
✔️ Minimise risk and avoid costly mistakes

📩 Reach out for a confidential conversation. Call Brenda on 0425 709 056 or email brenda@trackhrconsultancy.com.au

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