HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Reason for termination & legal factors

In this section, we will discuss various reasons for terminating an employee, some driven by the employer and some by the employee. For payroll, it is essential to clearly understand the reason for termination to ensure the correct process and/or steps are undertaken. The employee’s employment agreement or company policy should be the first call for payroll regarding what has been agreed upon regarding various types of termination situations. If not included, there may be legal steps that must be followed to ensure overall compliance. If any area is unclear, it is very important for payroll to communicate the issue to management so that clear instruction is provided.

In this section, the following will be covered:

Resignation Redundancy Disciplinary Retirement

• • • • •

Abandonment of employment

• Not returning from parental leave • Being made redundancy while on parental leave • Termination when an employee on a trial period • Long term sickness (Incapacity) • Not returning to work from ACC • Death • Frustration of contract (Force Majeure)

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

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