Employment termination pay

Last updated May 2025
Note: Previously titled 'Taxation – employment termination payments'

What payments are made upon voluntary resignation, dismissal or retirement?

When an employee leaves your business due to voluntary resignation, dismissal or retirement, you must pay them:

• any unpaid wages (see below);
• unused annual leave entitlements they have accrued (read more); and
• unused long service leave to which they are entitled (read more).

You may also be required to, or can choose to, pay:

• an employment termination payment (read more);
• a restraint of trade payment (read more); and
• a pain and suffering payment (read more).