Change to Timing of Termination Payments
13 October 2020
As part of the four-yearly review of modern awards the Fair Work Commission has modified the payment of wages on termination of employment clause within the Electrical, Electronic and Communications Contracting Award 2010.
Effective from 13 October 2020 the varied clause has changed the way an employer can make a termination payment to an employee.
Previously, employers were required to pay employees their termination pay inclusive of wages and entitlements owed on the day of termination or forwarded to the employee by post on the next working day. From the 13th October 2020, employers will have an additional 7 days to make the entitlement (annual leave, RDO etc) component of termination payments.
Employers are still required to pay wages to an employee by the end of the next business day on which the employees’ employment was terminated. The benefit of the variation for employers is that it provides more time to adequately calculate entitlement payments beyond weekly wages.
The Fair Work Commission will update the awards with this term and new versions of the award will be available through the Commission’s website or Master Electricians. Our award summary notes will also be updated to reflect these changes.
For further information please contact the MEA Workplace Relations Team on 1300 889 198.