Pay in lieu of notice

This thread is now closed to new comments.
Some of the links and information provided in this thread may no longer be available or relevant.
If you have a question please start a new post.
SherylG1
2 Posts
User

2Posts

1Kudos

0Solutions

Pay in lieu of notice

Hi

We have several employees that are being made redundant as of the 31/3. They are being paid a redundancy pay plus paid in lieu of notice. As this is the end of the financial year and they are being paid out in lieu of notice (which would be the month of April) do I need to pay them their notice period as a seperate pay in the new financial year? 

Having looked at previous messages, I'm thinking I need to pay 3 pays

1. Redundancy

2. Normal - final pay

3. Payment of notice period

Could someone please confirm this is correct?

Thank you. 

2 REPLIES 2
jenniek
Ultimate Partner
2,917 Posts
Ultimate Partner
New Zealand
Ultimate Partner

2,917Posts

720Kudos

362Solutions

Re: Pay in lieu of notice

HI @SherylG1 

If you are paying the payment today (31/3/23) then you could do it all in one pay - but make sure the tax implications are correct. Redundancy has different tax maybe, and rest would be a lump sum payment so secondary tax. Also as the in lieu of notice, and annual leave owing will go over the Easter break, then you will need to pay the public holidays as well. The final pay comes after the in lieu of notice, because that will be included in the gross earnings calc for the final pay.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
SherylG1
2 Posts
User

2Posts

1Kudos

0Solutions

Re: Pay in lieu of notice

Thank you Jennie :-)

Didn't find your answer here?

Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post