Final pay is due on or before the pay day for the final period

When employment ends in New Zealand, the final pay obligations are governed by the Holidays Act 2003 and the Employment Relations Act 2000.

When it is due

Final pay, including compensation for unused annual holidays, must be provided on or before the pay day for the final pay period — which may occasionally fall after your last day of work.

What must be included

• Payment for all hours worked since the last pay until the end of employment
• Accrued leave payment
• Notice, where applicable
• Redundancy compensation, only if your agreement provides for it

The breakdown

You should receive a detailed statement showing gross pay, PAYE, student loan deductions, KiwiSaver contributions and net pay, broken down by component — notice, leave and redundancy compensation separately.

A single lump figure tells you nothing about whether each part was calculated correctly.

KiwiSaver at termination

KiwiSaver is a voluntary work-based savings scheme. Your account remains yours, with the option to contribute independently or through a new employer.

How contributions are handled at termination depends on the scheme rules and your employment agreement.

Record retention

Employers should retain final pay records for at least six years from the date of termination.

That is partly because the ERA allows a personal grievance to be raised within 90 days — or later with employer consent — and good records are the employer's defence. They are equally useful to you.

Payday filing

Employers must file final pay details with Inland Revenue via payday filing, with a date and confirmation number.

Notice

The period stated in your agreement, or reasonable notice if none is specified. This applies even where no redundancy compensation is owed.

What to check

1. That the breakdown separates notice, leave and any redundancy compensation
2. That all hours since the last pay are included
3. That holiday pay was calculated under the Holidays Act
4. That KiwiSaver deductions and contributions appear

If something is wrong

Raise it promptly — and remember the 90-day personal grievance window.