Ordinary wages and any hours, allowances, commission or other contractual pay still outstanding.
WAGES, HOLIDAY PAY & FINAL PAY
A dismissal dispute and a pay dispute can exist at the same time.
Final pay can involve ordinary wages, holiday entitlements, notice, deductions and other contractual payments. Check the calculation rather than assuming payroll has got it right.
UNDERSTAND THE PROBLEM
Final pay should be reconstructed component by component.
When employment ends, a single net payment can hide several separate entitlements. Ordinary wages, notice, annual holiday entitlements, alternative holidays, contractual payments and lawful deductions may all need to be checked independently.
Do not assume the payroll system is correct merely because a final payslip was produced. Compare the employment agreement, leave records, pay history, termination date and the basis for each deduction.
WHAT MATTERS
Items commonly worth checking
Payment for notice where notice was not worked and the agreement or circumstances require payment.
Annual holiday and other leave-related termination entitlements under the Holidays Act framework.
Whether deductions were authorised and lawful, and whether the final pay date complied with the applicable agreement or normal pay cycle.
THREE QUESTIONS FIRST
Get these straight before the argument gets bigger.
What period and hours does the final pay cover?
What leave or holiday pay was included?
Were any deductions or notice adjustments made and on what basis?
WHAT TO DO NOW
Audit the final pay
Get the final payslip
Ask for the gross components, deductions and leave balances rather than relying only on the amount that reached your bank.
Check the termination date
Notice, garden leave, payment in lieu and the final day of employment can affect several components.
Compare leave records
Review annual holiday and alternative holiday balances and any leave taken in advance.
Query each discrepancy
List the exact amount or component you dispute and ask payroll to explain its calculation.
WARNING SIGNS
Things worth looking at closely.
- Final pay excludes worked hours
- Holiday pay calculation is unexplained
- Deductions appear without a clear basis
- Notice pay does not match the agreement
- Commission or other accrued contractual payments are omitted
COMMON MISTAKES
Ways employees accidentally make the problem harder.
DON'T
Comparing only the final net deposit rather than the gross components.
DON'T
Assuming unused sick leave is automatically paid out when employment ends.
DON'T
Treating holiday-pay calculations as a flat 8% in every termination situation.
DON'T
Accepting deductions for property, notice or alleged debt without checking authority and legal limits.
POSSIBLE OUTCOMES
What a useful result can look like.
Correction of wage or holiday pay arrears
Repayment of unlawful deductions
Notice or contractual payments
Separate or combined resolution alongside a personal grievance
FAQ
Wages, holiday pay & final pay
Is final pay separate from a dismissal grievance?
It can be. A dismissal may be justified or unjustified independently of whether final pay was calculated correctly.
Can an employer deduct money from final pay?
Only where there is a lawful basis. Written consent and statutory restrictions can be important.
Does holiday pay apply on termination?
Unused annual holiday and other Holidays Act entitlements can affect final pay. The calculation depends on the employee's leave position.
Should I keep payslips?
Yes. Payroll and bank records are central evidence in a wage dispute.
FROM PROBLEM TO OUTCOME
Most disputes move through the same basic sequence.
- 1Preserve
Documents, dates, evidence and the deadline.
- 2Raise
Put the actual grievance or response clearly.
- 3Resolve
Negotiate or mediate where a sensible resolution is available.
- 4Escalate
Use the ERA or Court where the dispute cannot be resolved.
WAGES, HOLIDAY PAY & FINAL PAY
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