Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Standard Termination Employment Agreement clauses • Termination clause • Notice period • Redundancy compensation • When a final pay will be paid

Additional special agreed terms: • Garden Leave • Bonding Agreement

Module 2: Legislative payments made as part of a termination pay • Holidays Act 2003 • Discretionary payments ▪ Terminate before 12 months ▪ Terminate after 12 months ▪ Extending leave on termination concerning upcoming public holidays ▪ Alternative Holidays ▪ How does ACC affect any annual holiday on termination • Parental Leave and Employment Protection Act 1987 • The employee does not return from parental leave • Employee returns from parental leave and then terminates • When leave must be paid in a termination pay (Holidays Act) • Extra Pay (Lump sum payments) ▪ Exit inducement payment ▪ Restrictive Covenant Payments • Personal grievance payments Module 3: Common agreed payments that payroll may do as part of a termination pay • Notice ▪ Working notice ▪ Payment in lieu of notice ▪ Extending notice • Bonus, commission payments • Long Service Leave • Toil • Additional agreed annual leave • Redundancy compensation • Retirement allowance • Reimbursing allowances

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

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