Final pay
Final pay is what an employer owes an employee when their employment ends.
Find out about what needs to be included in an employee’s final pay.
On this page:
- Employee’s final pay
- Final pay in awards
- When to pay
- Employment separation certificates
- Tools and resources
- Related information
Employee’s final pay
Final pay is the last pay an employee gets after their employment ends.
It’s made up of:
- wages owing for hours the employee has worked, including penalty rates and allowances
- any annual leave owing, including annual leave loading if it would’ve been paid during employment.
If it applies, final pay can also include:
- payment in lieu of notice
- redundancy pay
- accrued or pro rata long service leave.
Our role at the Fair Work Ombudsman
We can only give information and advice on the minimum entitlements and obligations.
We can’t help with final pay entitlements that don’t come from:
- the National Employment Standards (NES)
- an award, or
- an enterprise agreement.
If you need additional guidance for issues relating to final pay, you should seek legal advice. Find out how at Legal help.
Sick and carer’s leave
Sick and carer’s leave isn’t paid out when employment ends.
Annual leave entitlements
An employee’s unused annual leave gets paid out when their employment ends. This includes annual leave loading if the employee gets it when they take annual leave.
Annual leave loading is paid out on termination even when an award, enterprise agreement or employment contract says that it’s not.
Calculate any owed annual leave and annual leave loading using our Leave Calculator.
Example: Annual leave entitlements in the Electrical Award
Gabe is an electrician covered by the Electrical Award. His employment was terminated by his employer.
Gabe notices that his final pay didn’t include his annual leave loading.
Gabe visits our website and learns that his leave loading should be paid out with his accrued annual leave. He also reads our Library article – Annual leave loading on termination in the Electrical Award and finds out that he is entitled to leave loading when his employment ends, even though his award says that he isn’t.
Gabe shows this information to his employer. His employer fixes Gabe’s final pay.
Redundancy
If an employee is dismissed because the business no longer needs the role to be done by anyone, the employee may be entitled to redundancy pay. Learn more at Redundancy.
Deductions for insufficient notice of resignation
Sometimes an employee may not give their employer enough notice when they resign.
An award or enterprise agreement can have rules that allow an employer to withhold pay when the minimum notice period isn't given.
For more information, visit Resignation.
Tax and superannuation when employment ends
For information and help with tax or superannuation payments on termination, visit the Australian Taxation Office (ATO).
Final pay in awards
Select an industry from our filters below for award specific information about final pay. This includes:
- untaken rostered days off
- accumulated time off for overtime worked
- annual leave in advance
- when final pay must be paid.
When to pay
Rules may apply about when an employee’s final pay must be paid.
Most awards say that employers need to pay employees their final payment within 7 days after their last day of employment.
Check your award, enterprise agreement, or employment contract for specific rules about final pay.
Best practice tip
It’s best practice to give an employee their final pay within 7 days after their employment has ended.
Employment separation certificates
Services Australia sometimes requires employers to complete an Employment Separation Certificate when an employee stops working for them. This certificate needs to include information about employment termination payments.
For information about giving or receiving separation certificates, visit Services Australia’s website at Employment Separation Certificates for employers.
Source reference for page: Fair Work Act 2009 section 90(2)
