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The Fair Work Commission has varied the payment of wages on termination clause in the Building and Construction Award as part of its Modern Award Review.

The changes apply from the first full pay period starting on or after 13 October 2020.

What are the changes?

When an employee’s employment ends, employers need to pay the employee the following:

  • any outstanding wages for work the employee performed up to the end of their employment (including RDOs)
  • all other amounts under the Building Award and the National Employment Standards (NES) that need to be paid out (such as annual leave).

Outstanding wages

Where notice of termination is given by an employee or employer under the NES or the Building Award, the employee’s outstanding wages need to be paid:

  • on their last day of employment, or
  • within 2 working days of the employment ending.

Payment can be made by registered post or electronic funds transfer (EFT) if the employee is normally paid by EFT.

Where notice of termination isn’t given by an employee or employer under either the Building Award or the NES, the employee’s outstanding wages need to be paid:

  • on their last day of employment, or
  • by EFT within 7 days of the employment ending.

All other amounts (under the Building Award and the NES)

All other amounts that need to be paid out on termination (such as accrued annual leave), need to be paid:

  • on the employee’s last day of employment, or
  • by EFT within 7 days of the employment ending.

There may be rules about paying out any accumulated long service leave. Always seek advice about your state or territory long service leave obligations.

Find out more

Read the updated final pay rules in clause 31.4 of the Building and Construction Award.

Call our HR Advice Hotline to get quick verbal advice from our team of HR and employment law experts.

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