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.

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Merilyn founded Catalina Consultants in 2012 on the belief that all organisations, regardless of size, should have access to top quality bespoke HR services. She enjoys working closely with her clients and believes that the best results are built on relationships of rapport, trust and authenticity. Growing up, Merilyn had her sight set on stardom and dreamed of becoming an actor. She also sang and played the piano, but ended up studying accounting and HR. Whilst she hasn’t won her Grammy just yet, she still loves a good karaoke night. Merilyn loves to travel with her family, with South Africa being one of her most memorable destinations.

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