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The Friendly Termination Letter is a crucial document in Australian employment practice used when both the employer and employee have reached a mutual decision to end their employment relationship amicably. This document type is particularly valuable when parties wish to maintain positive professional relationships while ensuring legal compliance with Australian employment law, including the Fair Work Act 2009 and relevant state legislation. The letter typically includes essential information such as the termination date, final entitlements, return of company property, and any ongoing obligations. A well-drafted Friendly Termination Letter helps prevent future disputes by clearly documenting the terms of separation while maintaining goodwill between parties.

1. Header and Date: Company letterhead, current date, and recipient's contact details

2. Opening Statement: Confirmation of mutual agreement to terminate employment relationship

3. Effective Date: Clear statement of the last day of employment

4. Reason for Termination: Brief, positive explanation of the mutual decision to end employment

5. Final Entitlements: Overview of final pay, including salary, unused leave, and other entitlements

6. Company Property: List of items to be returned and process for return

7. Acknowledgment: Statement of mutual understanding and positive relationship

8. Contact Information: Details for future correspondence and references

9. Closing and Signatures: Professional closing, space for both parties' signatures and dates