Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 6 – Employment Agreement Clauses & Special Agreed Terms

1. Of the following statements, which would be the clauses that would apply to payroll when doing a termination?

(a) Wage rates, Holidays Act leave clauses, Restraint of Trade.

(b) Termination, Notice and Redundancy Compensation (if agreed).

(c) Travel and other allowances, wage and salary, notice.

2. Which one best describes garden leave in the following situations?

(a) Taking annual leave after working 12 months of continuous employment.

(b) Taken as unpaid leave following the same rules as parental leave.

(c) The employee has resigned and will work their notice from home until termination.

(d) A period of unpaid leave before they return to work.

3. What would be included in the final pay for the termination from garden leave?

(a) A special garden leave bonus, annual leave accrual at 8%, wage or salary.

(b) The employee receives all outstanding wages or salary payable to the date of termination, along with minimum leave entitlement and any agreed-upon payments payable on termination.

(c) Leave based on the last 4 weeks, annual salary and commission and taxable allowances.

4. Does a bonding agreement overrule the requirements of the Wages Protection Act?

Yes / No

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

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