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Employment ceased

When a person applies for benefit as they have finished work, their entitlement date is usually the day after their employment ceased. The date employment ceased is not always the person's last working day.

Some payments a person gets when they finish work affect the date their employment ceased.

Below are the payments that affect the date employment ceased:

If a person has received one or more of these payments, you need to calculate the date their employment ceased. See:

Note redundancy payments and severance payments do not affect the date employment ceased.

Legislation

When an employer terminates a person's employment, they must give the employee a period of notice unless they are being terminated due to misconduct. Notice periods are often 2 to 4 weeks.

Usually an employee works out their notice period, however an employer can choose to:

In all cases, the ...

When a person enters into a fixed-term contract or engagement, instead of receiving salary or wages, they may be paid at the end of the term of the contract or on completion or the work specified in the contract.

In some cases contractors are paid in instalments and the final instalment is paid on completion of the contract. This is often the case for people hired to complete a specific task ...

This is a payment that represents a leave entitlement an employee had accrued but not taken at the time their employment was terminated.

Employers are not legally required to pay out unused sick leave, family violence leave, long service leave, bereavement leave, or other leave entitlements specified in a person's employment agreement, but some choose to include it in their final pay.

Note family violence leave is also known as domestic violence ...

All employees in New Zealand are entitled to at least 4 weeks paid annual holidays after 12 months employment. When an employee takes an annual holiday day (also known as annual leave), they are paid holiday pay instead of their regular wages or salary.

Casual workers and people on fixed-term contracts are not always paid holiday pay the same as permanent employees. These people may either have their holiday pay: