Notice Periods
When you are notified that the employee is going to be terminated, they give or are given a Notice Period, which length is based on how long they have been employed within the company.
In circumstances where the notice period is not worked fully, either the employee or the employer would be entitled to a compensation.
For details and calculation of the Notice Period and its compensation, we recommend you use the Notice Period Calculator.
Add Termination Date on Buddy
On Buddy, you will need to insert the Termination date as the last day of employment. This means that the leave entitlement and the final payslip will be calculated up until the termination date. This is done by inserting Termination Date in the Role Details.
Doing Payroll and Paying Remaining Leave Balance
When saving a payroll of a terminated employee, the basic hours and the allowances will be calculated pro-rata. Government bonuses (Weekly Allowance and Statutory Bonus) will also be added pro-rata until termination date.
If the employee has any remaining leave balance that they have not yet taken, you can pay this balance by clicking Pay Leave.
Specific instructions on how to do this can be found in our guide on Paying Remaining Leave Balance.
Issue FS3
Once you have concluded Payroll, Buddy will automatically update the FS3 for the employee. Simply go to Tax Forms, select FS3 and download the employee's FS3. This will contain the details of their earnings for the current year.