Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

What payroll needs to do:

• Payroll needs to understand the notice period used within the business. In some businesses, it will be the same period of notice for all employees, and in other businesses for different positions, there could be different notice periods. This is usually based on how long it may take to fill the position. • Payroll needs to know the date the employee will finish. This should be in a resignation letter or a form the employer has created for an employee to complete if they decide to resign. Having a formal confirmation is important as this directs the termination process in this situation. • As part of the resignation process, there could be a termination checklist with sign-off from different people as the employee exits the business over their notice period. The termination checklist would be a formal process where the employee returns company property (e.g., company equipment — laptop, phone, company credit card, company car). These could be returned at set points of the notice period because they are not needed from that point as the employee prepares to leave. It is recommended that there be an actual sign-off where the name of the person signing off and the date this was actioned are recorded, and someone (not payroll) checks that all parts of the checklist have been signed off before the employee leaves to ensure everything is in order. • Payroll during this time would continue paying the employee their normal wage, salary allowances, etc., and anything else that would normally be paid from the work the employee undertakes, as per their employment agreement, but changes may occur depending on what work the employee will be doing or not doing on their notice.

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

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