Employers can deduct monies from an employee's wages if they fail to provide the required notice
Did you know you can deduct monies from an employee's wages if they fail to provide you the required notice?
If you have Modern Award covered employees (who are 18 years or over), and they fail to provide you with the required notice of termination as per the National Employment Standards when they resign, you are entitled to make a deduction from the wages they are due, but only up to 1 weeks' wages. Remember though, if you have agreed to a lesser period of notice, you won't be able to make any deduction from an employee's wages.
Also remember that you will now only have seven (7) days to pay a Modern Award covered employee's final termination pay.
Businesses should make sure their payroll systems can implement these changes to the Modern Awards.
Require advice on navigating your legal obligations under Modern Awards and employment legislation? Contact IR Legal Solutions, we can help you to stay on track and be compliant.