{"id":223700,"date":"2023-06-02T14:31:55","date_gmt":"2023-06-02T01:31:55","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=223700"},"modified":"2023-09-04T13:16:42","modified_gmt":"2023-09-04T00:16:42","slug":"employee-final-pay","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/employee-final-pay\/","title":{"rendered":"What Should I Include in an Employee’s Final Pay?"},"content":{"rendered":"\n

As an employer, determining what to include in your employee\u2019s final pay can be a confusing process. In addition, an employee may be leaving their role for different reasons, including retirement, redundancy, resignation, the completion of a fixed-term role or even dismissal. Therefore, what you must include in an employee\u2019s final paycheck will depend on several factors discussed in this article.<\/p>\n\n\n\n

Final Wages<\/h2>\n\n\n\n

Final pay should include an employee\u2019s wages and holiday pay for their final period of employment. If the next pay run falls on a day after their final day of work, you may wish to pay out their final wages earlier. <\/p>\n\n\n

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Hourly Rate Calculator<\/div>\n
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Annual Holiday Leave Entitlements in Final Pay<\/h2>\n\n\n\n

You must pay out any of your employee\u2019s unpaid annual leave<\/a> in the final pay run. Employees receive annual holiday leave (also known as annual leave) once they have worked continuously with an employer for 12 months. For example, the law entitles a full-time employee to four weeks of annual leave, and a part-time employee receives annual leave prorated by their work hours. <\/p>\n\n\n\n

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The payment rate is at the rate of the ordinary weekly pay, as if the annual holiday leave was taken at the end of the employment. Nevertheless, the amount of annual holiday leave that employees are entitled to will depend on whether they have already taken any leave.<\/p>\n<\/div>\n\n\n\n

If an employee has not worked for your business for 12 months, then the law entitles them to 8% of their gross earnings. However, if they take any annual leave in advance or you have made \u201cpay as you go\u201d payments, you can deduct these sums from the 8% entitlement.<\/p>\n\n\n\n

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Most payroll systems will have an automatic prorated calculator to determine what annual holiday leave entitlements an employee is entitled to at the end of employment.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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