As a payroll manager or employer, you’ll occasionally be asked to complete an Employment Separation Certificate (ESC) for a former employee. Centrelink, now known as Services Australia, uses the ESC (form SU001) to determine when a person becomes entitled to income support payments such as JobSeeker Payment.
The key principle is this: claimants are generally expected to use any leave and redundancy payments to support themselves first, before receiving the full rate of JobSeeker Payment. The information you provide on the ESC directly affects when a former employee’s payments begin.
Here’s a plain-language guide to the most common questions payroll teams have about completing the form.
My employee hasn’t been terminated. Should I still complete the ESC?
Yes, if requested. You may be asked to complete an ESC in circumstances other than termination, for example, where there has been a decrease in working hours or a change from full-time to casual employment.
In these situations, you can amend the form to reflect the actual circumstances. For instance, you might change “reason for separation” to “employment has changed because.” Use the “Reason” box to provide additional detail about what changed.
What if the employee resigned or was dismissed for misconduct?
Employees who cease work voluntarily or are dismissed due to misconduct may be required to serve an Unemployment Non-Payment Period before they can receive a payment from Services Australia. You should still complete the ESC accurately. It is the information on this form that determines how Services Australia assesses their claim.
What if the reason for termination doesn’t fit any of the options on the form?
Mark the “Other” box and use the “Reason” field to explain the circumstances. Don’t leave it blank – additional context helps Services Australia assess the claim correctly and avoids follow-up queries to you.
What time frame applies to the “workers compensation claims” question (Question 3)?
This question relates to the total period of employment, including any historic claims that have since been closed.
What should be included in the “final gross payment”?
This is the total amount the employee received in their last pay before tax. It covers everything paid in that final pay run.
What should be included in “redundancy payment”?
For the purposes of the ESC, a “redundancy payment” is the portion of the final payment that is not wages or leave entitlements. State the gross (before tax) amount.
What counts as “other” under “types of leave entitlements” (Question 7)?
Examples of “other” leave include rostered days off (RDOs) and time off in lieu (TOIL).
What is the employee’s “average gross weekly wage”?
This is the amount you normally pay the employee on a weekly basis. If you pay fortnightly, divide the fortnightly amount by two to arrive at the weekly figure.
What are “cashed-in leave entitlements”?
Cashing in leave entitlements is only permitted where it is provided for under an applicable award or enterprise agreement. It occurs when an employee receives payment for accrued leave without actually taking the time off.
Who can sign the ESC?
The employer, or a pay officer who has been authorised by the employer to provide and verify the information.
What if I don’t have a business stamp?
Any stamp that shows your business name and address will do. If you don’t have a stamp at all, your phone number and signature are sufficient. Do not use your company’s common seal.
How long do I have to complete the form?
You must complete and return the ESC to the former employee, or directly to Services Australia if requested, within 14 days of receiving the request.
Where can I get the form?
You can download the current Employment Separation Certificate (SU001) directly from the Services Australia website: servicesaustralia.gov.au/su001
For further assistance, contact the Services Australia Employer Line on 13 11 58.