Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Notice period

Either party may terminate the employment agreement with four weeks' written notice unless otherwise negotiated with the employer.

Deduction of money from employee pay

Under the Wages Protection Act, a general clause in the employee's employment agreement is the first step (not the only step) for the employer to use to recover money owed to the employer by the employee from their final pay.

When actioning the deduction clause

The next step is to reference the deduction clause agreed in the employee's employment agreement and then state the date and amount of the deduction that will be deducted from the employee's final pay.

Example of a deduction clause from an employee employment agreement:

The employer may take an agreed amount from an employee’s pay if the employee has requested it, or agreed to it, in writing. The employee can withdraw their consent, or change the amounts, by giving written notice.

The employer will also take amounts as required by law, eg tax, student loan repayments, ACC, child support and KiwiSaver.

Reference: https://eab.business.govt.nz/employmentagreementbuilder/remune rationandbenefits/takingMoneyFromPay

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

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