Termination and recruitment can be complex and costly for Employers. Employers who employ more than 15 employees can be subject to unfair dismissal claims. Small business employers with less than 15 employees still need to comply with the Fair Dismissal Code. Do seek advice when terminating employees as there are various matters to consider, for example:
- When terminating an employee, the notice of termination given to the employee cannot run concurrently with a period of annual leave. Fair Work Commission has stated that the notice period is provided to employees to enable them to seek alternative work whilst they are still working. Therefore if the employee has leave already booked or is currently on leave then the notice period will commence on the completion of that leave.
- Where an employee is over 45 years of age and has at least two years continuous service, the employee will be entitled to one additional week notice.
- No leave is accrued over the notice period where an employee does not work out the notice of period, however if the employee does work out the notice period, leave will accrue.
- If an employee has a HELP/SFSS student debt and employer is usually withholding additional tax, this tax should NOT be withheld from lump sums of annual leave or long service leave being paid on termination.
Source: Austwide Tax & Payroll Newsletter January 2016
At WLM, we can help you keep up to date and offer assistance on many aspects of payroll. This includes other employer obligations, such as super, payroll tax and workers’ compensation insurance.