The Fair Work Commission has varied the payment of wages on termination clause in the Timber Industry Award, as part of its Modern Award Review.
The changes apply from the first full pay period starting on or after 26 October 2020.
What are the changes?
When 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
- all other amounts under the Timber Award and the National Employment Standards (NES) that need to be paid out (such as annual leave).
Notice of termination is given
Where notice of termination is given by an employee or employer under the NES or the Timber Award, the employee’s outstanding entitlements need to be paid:
- on their last day of employment, if paid by electronic funds transfer (EFT), or
- within 30 minutes of the employment ending, if paid by cash or cheque.
This also applies if the employer pays out the notice period.
All other situations
In all other situations, the employee’s outstanding entitlements need to be:
- paid by EFT within 7 days of the employment ending, or
- sent by registered post within 7 days of the employment ending, if paid by cash or cheque.
There may be rules about paying out any accumulated long service leave. Check with your state or territory long service leave agency,.
Find out more
You can see the updated final pay rules in clause 25.3 of the Timber Industry Award.
For more information about what an employer owes an employee when their employment ends, contact Better HR.