Question:

I’m  wanting some advice please.  Do you know what the ‘rulings’ are when an employment relationship ends (by reason of resignation, end of fixed term, redundancy etc).

Ie: Is an employer obligated to pay a final pay on the last day of employment?  Or can we say nominate a particular day of the week that we process manual pays, or leave it to the following pay day?

 Is there a specific act or something that defines when an employer should pay this or when an employee is entitled to receive the money?

Answer:

There are two things that decide how final payments are made: terms and conditions of employment and the Wages Protection Act 1983.

If it is in the employment agreement and they have signed the terms then that tells you when payments are to be made, otherwise the Wages Protection Act states it should be paid on their final day.  Under the Holidays Act 2003 section 27(2) states holiday pay can be paid in the period that relates to the final period of employment.