HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

What does payroll need when an employee resigns? If an employee resigns, payroll needs the following: • What type of resignation is it? (look at the previous section) • What is the final date of employment? • What is the notice period for this employee (either agreed in the employment agreement or agreed upon at the time of resignation)? • Is there documentation for the resignation (resignation letter from the employee or instructions on what the business wants to be done for the resignation, such as payment in lieu of notice. • Have any additional special payments been agreed upon? • Are there any other potential payments that could be paid after the employee leaves their employment? (People who have commission payments paid after they leave may be entitled to a percentage of that payment). • Is there any settlement agreement involved (personal grievance). • Is there any money owed to the employer (overpayments, employee loans, or company staff accounts) It is essential for payroll to be proactive and get the message out to management that payroll must be fully informed of all details that will impact on the employee’s final pay.

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

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