Question:

 

May I ask you a quick question about final pay?

 

Under the Wages Protection Act that \”unless the agreement provides otherwise, wages are payable on termination\” and we discussed this being on an employee’s last day of employment (unless the agreement says otherwise).

 

But on another website I found this question and answer:

\”When does an employer have to pay an employees final wages and holiday pay?
Employees should expect to receive their final wages and holiday pay in their pay for the final period of their employment. This does not, however, prevent an employer and employee agreeing that a final payment should be made earlier than this date, for example on the employee’s last day of work.\”

This implies that it does not be on the last day of employment but in the next normal payrun.

Can you please help me to clarify what the legislation says about final pay?

Answer:

If it is stated in the employment agreement that final pay will be paid in the pay period after their termination date no problems because the employee has given the employer written consent by signing the employment agreement (Wages Protection Act 1983).

 

If there is nothing in the employment agreement then it should be paid on the last day.

 

The Holidays Act has a section 27(2) that states that holiday entitlement must be paid in the final period of employment.

 

Even if you paid after their termination date there is nothing the employee can really do.