termination payment
Termination payment is the amount paid to an employee when their employment concludes. This includes components like notice pay, redundancy pay and accrued benefits like unused annual leave and long service leave. It's also commonly known as final pay.
When an employment relationship ends, the employee is often entitled to certain financial compensations. These include notice pay (payment during the notice period if the employment is terminated by the employer), redundancy pay (if the termination is due to redundancy), and payment for any unused leave such as annual or long service leave. This final sum helps to settle all the financial obligations of the employee with the organisation.
Explore more terms
Whether you're looking for definitions of other related terms or just browsing, our full list offers a wealth of information at your fingertips.
Back to Glossary