Employee Final Pay


Do you know how it is calculated?

It can be a tough time for the business when employees leave or are fired. In order to make it easier for yourself, get to know your obligations for paying out employees. You’d be surprised – it may save you money and time in the future.

When issuing an employee’s final pay it is recommended you refer to the relevant employment contract, award or agreement to determine when it must be paid. If it is not specified we recommend you pay the employee on their last day or on the next pay day. When paying an employee’s final pay you must include their outstanding wages, including penalty rates and allowances, and their accrued annual leave. If it applies you may be obligated to pay annual leave loading, accrued long service leave, or redundancy pay. When ending employment you are not required to pay out sick or carer’s leave.

Providing the correct final pay is essential when an employee leaves the business, as Fair Work is strict when it comes non-compliance. To save yourself from a headache in the future, the best thing you can do is be proactive by familiarising yourself with the awards, agreements and employment contracts relevant to your organisation, and following the requirements stipulated by them.

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Marisa Ross

HR Advisor

Marisa is an experienced and motivated HR professional with a strong HR generalist and business operations background with a focus on employee relations, performance management, leadership training & development, workers compensation & injury management, and employee retention. Marisa holds a Bachelor of Human Resource Management and a Bachelor of Behavioural Science with a minor in Counselling. Having worked in a variety of industries from SMEs to large blue-chip organisations, Marisa is passionate about enriching employee experience, employee retention, and building leadership capability in people management.

Aimee Grigson

Aimee Grigson

WHS Advisor

Aimee has a strong understanding of Workplace Health and Safety Legislation and standards and has extensive HSEQ experience in a number of industries. Aimee has a great ability to engage across all levels of organisation, including field teams, leadership and external stakeholders. Aimee ensures Health and Safety Management Systems are compliant to legislation, effectively implemented and understood by all. Aimee has a Certificate IV in Work Health and Safety and qualifications in auditing and incident investigations. Aimee is passionate about coaching and developing small businesses towards a positive safety culture.