Termination Processing

When an employee's services are terminated, regardless of the reason, the employer must make mandatory payments to the employee, depending on the circumstances. Payments can consist of:

• Final wages.

• Unused leave entitlements.

• Redundancy and retrenchment payments.

• Early retirement.

• Invalidity and disability payments.

• Pay in lieu of notice (considered an ETP).

• Ex gratia payments (considered an ETP).

The calculation of these payments can vary from organization to organization depending on the reason for termination.