Q: We agreed to pay an employee an additional 4 months salary lump sum in advance after his termination date.
– Should that 4 months period in advance be paid at ordinary rate or at average weekly rate?
– Does annual leave continue to accrue for the additional 4 month period?
A: As it is an agreed term it is based on what was agreed, check the employment agreement if it states what a month is and rate it is paid at or is there a letter that was agreed for this?
This really is a payment in lieu of notice so the termination date is the date accrual ends and this 4 months does not extended forward from that date.