11. How do I calculate my end of year payments? When will I receive the money?
It should be the amount that is specified in your employment contract.
If the amount is not specified, then it should be equivalent to a full month’s wages (for monthly rated employees) or in any other case, 26 days’ wages based on the average daily wages earned during every complete wage period of not less than 28 days and not more than 31 days, immediately preceding or expiring on the day on which the end of year payment becomes due.
The end of year payment should be paid:
- on the day specified in the employment contract; or
- on the last day of the payment period or within seven days after that day (if a day is not specified); or
- on the day that the contract is terminated or within seven days after that day (if the employment contract is terminated before the payment period expires and the employee is eligible for pro rata end of year payment); or
- on the day that the profits are ascertained or within seven days after that day (if the end of year payments are calculated by reference to any profits of the employer).
Offence and Penalties
Employers who fail to pay end of year payments to eligible employees are liable to prosecution and, upon conviction, to a fine of $50,000.
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