Summary

Termination payments are paid using Allowance Type X. Termination.

When an employee ceases working for your organisation, create a termination transaction so that you can generate their final pay.

Redundancy Payouts

The New National Employment Standards introduced by the Fair Work Act define the following minimums for redundancy payouts:

Employee’s period of continuous service with employer

Redundancy pay period

At least 1 year but less than 2 years

4 weeks

At least 2 years but less than 3 years

6 weeks

At least 3 years but less than 4 years

7 weeks

At least 4 years but less than 5 years

8 weeks

At least 5 years but less than 6 years

10 weeks

At least 6 years but less than 7 years

11 weeks

At least 7 years but less than 8 years

13 weeks

At least 8 years but less than 9 years

14 weeks

At least 9 years but less than 10 years

16 weeks

At least 10 years

12 weeks

Termination scenarios

Employee terminations can be any of the following:

Termination with no ETPs

The Decide whether a payment is an ETP table (see Transaction Entry - Termination (Aus)) shows which employee termination payments are ETPs. If the employee has no ETPs (such as a casual employee):

• Check other open pays.
• Check the employee’s final pay.
• Add a termination transaction in a Manual pay.

See Transaction Entry - Termination (Aus) - No ETP

Termination with ETPs

If the employee has ETPs:

• Check other open pays.
• Check the employee’s final pay.
• Add an Employee Terminations record.
• Add a termination transaction in a Manual pay.

See Transaction Entry - Termination (Aus) - With ETP

For more information, see the Australian Payroll Termination manual.