Glossary

Final Payment

The last payment an employee receives before they leave a company. The final pay is typically made on the employee’s last day of work and covers all the money owed up until the final pay period of their employment.

Employers must ensure they accurately calculate the final pay or they risk facing a claim for unpaid wages. An employee’s final pay should include the following: outstanding wages for time the employee has worked; leftover annual, sick or holiday leave; payment in lieu of notice; and any extra benefits agreed upon in the employment contract.