HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Disciplinary

Occasionally, there could be a situation where the employer, following formal procedures, may have to terminate an employee's employment because of their action or behaviour.

This is about the employment relationship not continuing, and for payroll, termination pay will be required.

There are two types of disciplinary that can lead to termination:

• General misconduct , in which a series of warnings have been provided to the employee, has now reached the point that termination of employment is now the last option. Payroll will only know about the termination part of this process because the previous warnings are intended to help the employee get back on track. So when payroll finally actions the termination (directed by management), it could have been based on a process that has taken months to reach this conclusion (first written warning, final written warning, termination). This type of disciplinary process has notice period payable. • Serious misconduct (sometimes called summary dismissal or instant dismissal) means that because the action or behaviour of the employee is so serious (has undermined trust and confidence in the employee), the employment relationship cannot continue or be fixed, and the employee can no longer be employed.

This type of disciplinary process is not based on a series of warnings, and no notice is payable.

Example of an Ending Employment: Serious Misconduct clause from an employee’s employment agreement:

If, after following a fair process, the employer concludes that the employee has engaged in serious misconduct, the employee may be dismissed without notice. Serious misconduct is behaviour that fundamentally compromises the employer’s trust and confidence in the employee. Serious misconduct includes, but is not limited to: • theft • sexual or other assault

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

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