As an employer, it’s likely you have a lot of questions around final pay such as:
- When do I need to pay the termination pay?
- Can I withhold pay after termination?
- What needs to be calculated in the termination pay?
In line with the Fair Work Act, employers need to pay an employee for all work performed, as well as any entitlements they may be owed, such as annual leave, long service leave, or superannuation. Any accrued entitlements that are payable on termination (e.g. annual leave or long service leave) should also be paid.
If, on the other hand, an employee resigns without giving the correct amount of notice, an employer has the right to withhold pay in line with the terms of an employee’s award or employment contract. In this case, it’s best to consult state and federal legislation and speak to a legal adviser, to determine exactly what pay you need to provide your employee after termination.