Final Pay – When this is to be paid

Q: When is a final pay to be paid does it have to be on the final day of employment but I can’t find the legislation to back this up.

Can you provide this for me so I can go back to my supervisor as we are having discussion about this at the moment.

A: It is not clearly stated that way in legislation.

  • Termination date could be based on notice
  • It could be based on what has been agreed in the employment agreement (pay date, or a special clause that states termination pay will be paid at a later date/period specified).

If there is a nothing that states the termination date is not the last day the employee works then the employment relationship finishes on that final day and the employer has no right to hold an employees pay past that date.

The key is to have something agreed.

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