Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Contents

Introduction ............................................................................ 6 Module 1: Reason for termination & legal factors .........................9 Resignation ................................................................................................ 10 Skill Check 1 - Resignation ..................................................... 13 Redundancy ............................................................................................... 14 [EmploymentNZ] Redundancy ................................................. 16 Workplace change process .................................................................... 16 To end an employment relationship, notice must be given by one party (the employee or employer) to the other party. ........ 16 Redundancy is a last option .................................................................. 16 Notice of redundancy ............................................................................. 17 Redundancy compensation ............................................................... 17 Skill Check 2 - Redundancy..................................................... 22 Disciplinary ................................................................................................. 23 Retirement .................................................................................................. 25 Abandonment of employment..................................................................... 26 Skill Check 3 – Disciplinary, Retirement & Abandonment ............ 28 Not returning from parental leave ............................................................... 29 Employee not returning to work from parental leave .................................. 29 What happens when an employee does not return from parental leave?30 If the employee does not return from parental leave what termination date should be used in payroll? .................................. 30 What about if the employee has worked while on parental leave? .................................................................................................... 30 Employee made redundant while on parental leave...................................31 Period of preference ............................................................................... 32 Termination when an employee is on a trial period .................................... 33 Long term sickness (Incapacity) ................................................................. 34 Not returning to work from ACC ................................................................. 36 Skill Check 4 – Not returning from parental leave, Termination from a trial period, Not returning to work from ACC........................... 37 Death of an employee ................................................................................ 38 Frustration of contract (Force Majeure) ...................................................... 39 How frustration could occur .................................................................. 39 Skill Check 5 – Death of an employee, Frustration of contract ..... 41 Standard Termination Employment Agreement clauses .............. 42 Termination clause ..................................................................................... 42 Notice period .............................................................................................. 43 Deduction of money from employee pay .................................................... 43 Redundancy compensation ........................................................................ 44 When a final pay will be paid ...................................................................... 45 Additional special agreed terms ............................................... 46 Garden Leave ............................................................................................. 46 Bonding Agreement.................................................................................... 47 Training Bond Agreement ....................................................... 48

© New Zealand Payroll Practitioners Association, Mar 2026, Ver 9

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