Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 6 – Employment Agreement Clauses & Special Agreed Terms .................................................................................. 49 Module 2: Legislative payments made as part of a termination pay ........................................................................................... 50 Holidays Act Legislative Requirements on Termination ............................. 51 Discretionary Payments .......................................................................... 51 Pay an employee terminates while receiving “Pay as You Go”, 8% ....... 52 Calculation of Annual Holiday Pay if Employment Ends within 12 Months ................................................................................................................ 53 Annual holiday entitlement paid out on termination after 12 months.......54 Calculation of Annual Holiday Pay If Employment Ends Before Further Entitlement Has Arisen ........................................................................... 55 Payments may be cumulative ................................................................. 56 Skill Check 7 – Holidays Act Sections 28, 23, 24 & 25 ................ 58 Extending annual holiday entitlement on termination.............................. 59 Payment for Alternative Holiday ................................................................. 60 Skill Check 8 – 8%, Extended from Termination Date and Alternative Holiday ................................................................ 61 The calculation for annual holiday entitlement paid out on termination earned while on ACC .............................................................................. 62 Employee not returning to work from parental leave............................... 63 Employee made redundant while on parental leave ...............................64 Employee returns from parental leave and then terminates ...................65 Skill Check 9 – ACC & Parental Leave on Termination................. 66 Exit inducement payments...................................................................... 67 Restrictive Covenant Payments.............................................................. 68 Personal grievance payments................................................................. 69 Points to note: ..................................................................................... 69 Skill Check 10 – Exit, Restrictive and PG’s ................................ 71 Module 3: Common agreed payments that payroll may do as part of a termination pay .............................................................. 72 • Additional agreed annual leave ..................................................... 72 What is notice?........................................................................................... 73 Notice when worked ............................................................................... 73 Notice paid in lieu ................................................................................... 75 Redundancy............................................................................................ 75 Termination based on a disciplinary ....................................................... 75 Skill Check 11- Notice ............................................................ 76 Bonus, commission payments.................................................................... 77 Long Service Leave.................................................................................... 78 Toil ............................................................................................................. 78 Additional agreed annual leave .................................................................. 79 Taxable allowances .................................................................................... 79 Reimbursing allowances ............................................................................ 79 Skill Check 12 – Agreed Additional Payments ............................ 80 Module 4: Deductions from a termination pay ........................... 81 Wages Protection Act 1983 ........................................................................ 82 Making deductions to an employee’s wage or salary on termination .............................................................................................. 82

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

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