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C. Termination of employment and the relevant payments

Regardless of whether you are an employer or employee, you should give either (i) formal advance notice or (ii) wages in lieu of notice to your existing employer/ employee for the termination of an employment contract.

 

The items and amount of payments that are payable to an employee on termination of employment or the expiry of aan employment contract depend on a number of factors, such as the length of service, the terms of the employment contract and the reason for the termination of the contract. For quick reference, termination payments usually include:

 

  • outstanding wages;
  • wages in lieu of notice, if any;
  • payment in lieu of any untaken annual leave, and any pro rata annual leave pay for the current leave year;
  • any outstanding sum of end of year payment, and pro rata end of year payment for the current payment period;
  • where appropriate, long service payment or severance payment;
  • other payments under the employment contract, such as, gratuity or provident fund payments.