Employers are reminded that when a person’s employment terminates and he/she receives payment of salary with their entitlements upon termination, it is important that the employer provides a pay slip within one day of the last day worked (but ideally on the same day) to comply with section 536 of the Fair Work Act 2009 (Cth). A failure to comply could lead to a civil penalty, which can be up to $5,100 for individuals and $25,500 for corporations.

With more employers outsourcing their payroll functions, and termination payments generally made outside the usual payment cycle, it is important to ensure that someone in your organisation is responsible for ensuring that a compliant pay slip is provided to the employee on time — especially if the employee is disgruntled by the exit, you wouldn’t want a small slip-up to land you in hot water!