On 26 August 2020, the Fair Work Commission issued a final determination varying the payment of wages on termination clause in the Aged Care Award. The change applies from the first full pay period starting on or after 26 August 2020.
The change helps clear up when an employer needs to pay an employee’s final pay.
Previously, when either party gave notice that the employment was ending, employers had to pay all wages and money owed to their employee on the last day of employment.
Clause 17.3 now says employers must pay all wages and money owed to an employee:
- on the last day of their employment, if the employee follows the notice periods in clause 11.1 or the employer follows the NES when they end the employment, or
- within 7 days after the employment ends, in all other circumstances (for example, an employee resigning without giving their employer the notice from clause 11.1).
See Notice & final pay for information on ending employment.
Where an employee fails to provide the adequate notice period, all monies owed to the employee must be paid within 7 days of termination.
Need help with interpreting the Aged Care Award? Contact Better HR