Paying termination

[belinda]

Is there any legal requirement for paying out termination. I am not talking about entitlements, but when to actually pay the employee. For Example: they finish up on Friday, but are not paid until the next scheduled payroll which is in 2 weeks???

Thanks

[Qld IR Consultant]

Are you talking about the requirement for pay in lieu of notice or the requirement to pay them immediately or making them wait for 2 weeks?

[belinda]

Not the lieu in notice but the requirement to pay them immediately or in the next pay period.

[Qld IR Consultant]

As far as I am aware there is no requirement in the Act for payment immediately, and it would not be unreasonable for you to pay at the next pay period. But, in saying that, I personally would pay them immediately so there is no recourse for complaint etc. If the employment relationship is being terminated for whatever reason I like to get it all done and dusted and move on as quickly as possible.....

[Job Media]

While most of us know instinctively what the right thing to do is morally when questions like this arise, when it comes to legal responsibilities I find it concerning that "the Act" fails to deal with so many basic questions explicitly.

As they say on Q&A, you can take that as a comment

[Qld IR Consultant]

Your very correct Job Media. FWA can't (or actually won't) make binding decisions in writing on what awards apply to a business, but their inspectors can enter, make an arbitrary decision on the day and prosecute the business for failing to comply. Go figure......

[Cottoneyes]

Depends on what entitlements are paid. Some state LSL acts actually state that entitlements on termination must be paid on the final day of employment (Vic from memory being one of them). I've not yet seen it but some EBAs could have something in it as well

In reality however, if paying 2 weeks later the associate is not going to have their claims heard by any magistrate (the course of action required under the LSL act) by the time the payment is made. Any realistic employee would only continue with any action if they could show hardship due to the with holding of the payment.

With the legal part out of the way, IMO it does nothing to show the employer as a good one, if the employee talks about their time with you to other prospective candidates, it will the most forefront in their mind. Why can't the payroll pay it on the day assuming all conditions are met?