October 18, 2018
Termination payments: You now have 7 days to pay
There’s been another update in the world of human resources and this time, it’s regarding terminated employees and their wages. The Fair Work Commission has handed down determinations and has made some changes to a number of modern awards including those of termination payments. This decision was made on 15 August 2018. The most recent announcement is in relation to the new Payment of Termination clauses which have been inserted in most awards.
So what does this mean for you, your HR department and your business?
If an employee has been terminated for whatever reason, employers must pay all wages and any other outstanding amounts due to the employee no later than seven days after the day of termination. You can view the schedule of determinations here.
When will the changes to termination payments be effective?
The changes will come into effect from the first full pay period on or after 1 November 2018.
If you’re concerned about how these changes might affect you, your HR department or business overall, then feel free to contact one of the Catalina Consultant team members. They’ll be able to assist you with any questions that you may have regarding these termination payment changes.