Final Pay Entitlements: The Complete Payout Checklist & Calculator

Your final pay audit starts here. Before you accept that last payment, you need to know exactly what you’re owed and whether your employer has paid every cent.

Use the Final Pay Audit Checklist below, then work through each section to verify your entitlements, calculate what’s owing, and take action if something’s missing.

What Am I Entitled To? The Payout Matrix

Your final pay depends entirely on how your employment ends. A resignation triggers different entitlements than a redundancy. Summary dismissal for serious misconduct? That changes everything again.

Use this matrix to see exactly what unlocks for you.

 

Your action: Identify which column applies to your situation. Circle every row where you’re owed payment. This becomes your verification checklist when your final pay arrives.

Calculating Your Final Pay: The Step-by-Step Formula

You’re likely holding your final payslip right now, wondering if the numbers add up. Here’s how to verify every line item.

The Core Formula

(Hours Worked × Hourly Rate) + (Unused Annual Leave Hours × Rate) + (Leave Loading %) + (Long Service Leave) − (Tax) = Final Pay

Your Calculation Checklist

Work through each component systematically:

1. Outstanding Wages

Calculate every hour worked up to your final minute of employment. This includes:

• Regular hours at your base rate
• Overtime at the applicable penalty rate
• Any shift allowances or loadings for your final shifts

Formula: Total hours × applicable rate for each hour type

2. Annual Leave Payout

Convert your unused leave balance from days to hours, then multiply by your current hourly rate.

Formula: Unused leave days × hours per day × current hourly rate

Example: 15 days unused × 7.6 hours × $35/hour = $3,990

3. Leave Loading

This is where employers frequently underpay. Check your award or employment contract for the applicable percentage, it’s usually 17.5% on top of your annual leave payout.

Formula: Annual leave payout × 17.5% (or your applicable rate)

Example: $3,990 × 17.5% = $698.25

Critical point: Leave loading typically applies to the payout of unused leave, not just leave you take during employment. Many employees miss this.

4. Long Service Leave

Eligibility depends on your state or territory and length of service:

• NSW: 10 years (pro-rata from 5 years in some circumstances)
• Victoria: 7 years for pro-rata on certain exits, 10 years for full entitlement
• Queensland: 10 years
• Other states vary

Check your state’s long service leave legislation for the exact accrual rate (commonly 8.67 weeks per 10 years of service).

5. Superannuation

Super is paid into your nominated fund, not your bank account. This is a common point of confusion. Your employer must pay super on your ordinary time earnings up to and including your final pay, but you won’t see it on your bank statement.

Verify super payments through your fund’s online portal approximately 28 days after the end of the quarter in which you left.

Common Calculation Mistake

Forgetting that leave loading applies to payout of unused annual leave. If your award or contract includes leave loading, you’re entitled to it on every unused day—not just the leave you took while employed.

When Do I Get Paid? Timing Rules and Late Payment Action

Your employer cannot hold your final pay indefinitely. The law sets clear deadlines.

Most modern awards require payment within 7 days of your employment ending. Some awards specify payment on the next regular pay cycle. Check your specific award for the exact requirement.

If you’re award-free, the Fair Work Act requires payment within a “reasonable period”—which the Fair Work Ombudsman generally interprets as within 7 days.

Can Your Employer Withhold Final Pay?

Generally, no. Your employer cannot withhold wages you’ve already earned.

Limited exceptions exist:

• If you didn’t provide the required notice period, some awards allow deduction of up to one week’s pay
• Overpayments your employer can prove (though they must follow proper processes)
• Authorised deductions you agreed to in writing

Your employer cannot withhold pay because:

• You haven’t returned company property
• There’s a dispute about your performance
• They’re unhappy you resigned
• They claim you owe them money (without proper authorisation)

An employer cannot deduct money from your annual leave as that is protected by legislation.

Late Payment Action: Your Email Template

If it’s been more than 7 days since your employment ended, send this immediately:

Subject: Outstanding Final Pay – [Your Name] – Employment Ended [Date]

Dear [Payroll Contact/HR Manager],

My employment with [Company Name] ended on [Date]. As of today, [Current Date], I have not received my final pay entitlements.

Under [Your Award Name/the Fair Work Act 2009], final pay was due by [Due Date, typically 7 days after termination].

Please confirm by return email when my final pay will be processed. My outstanding entitlements include:

• Unpaid wages for [dates/hours]
• Accumulated annual leave: [X days]
• Annual leave loading
• [Long service leave/other entitlements if applicable]

If payment is not received within 48 hours, I will escalate this matter to the Fair Work Ombudsman.

Regards, [Your Name] [Your Contact Details]

Your action: If your final pay is overdue, copy this template and send it today. Keep a record of all correspondence.

Should I Resign or Wait to Be Terminated? Strategic Considerations

If you sense termination is coming, you face a strategic decision. Each path has different implications for your entitlements and future employment.

Understanding the “3 Month Rule”

You may have heard about a “3 month rule” in relation to termination. This usually refers to probationary periods. However, they do not actually exist in legislation.

What matters is the Minimum Employment Period as a benchmark for access to the unfair dismissal protection under the Fair Work Act:

• Small business (fewer than 15 employees): 12 months before unfair dismissal protection applies
• Larger employers: 6 months before protection applies

If you’re terminated before reaching this threshold, you generally cannot make an unfair dismissal claim (though other protections like general protections claims may still apply in specific situations).

Resignation: The Trade-Offs

What you gain:

• Control over your departure timing
• Ability to secure a new role before leaving
• Generally preserves professional references
• Cleaner narrative for future employers

What you lose:

• No redundancy pay (even if the role is being made redundant)
• No payment in lieu of notice
• Potentially no Centrelink payments for a waiting period (if you resign without “sufficient reason”)

Termination: The Trade-Offs

What you gain:

• Payment in lieu of notice (if employer doesn’t require you to work it)
• Redundancy pay (if your position is genuinely redundant and you’re eligible)
• Potentially immediate Centrelink eligibility (if terminated through no fault of your own)

What you lose:

• Risk of “serious misconduct” finding (which eliminates notice pay)
• Less control over timing and narrative
• Potential reference complications

Decision Guide

If you’ve been employed less than 6 months at a larger employer (or 12 months at a small business): You have limited unfair dismissal protection. Resigning may preserve your professional reputation without sacrificing significant entitlements.

If you’re facing genuine redundancy: Waiting for formal termination typically makes financial sense, redundancy pay can be substantial.

If you’re experiencing bullying or harassment: Document everything and seek advice before resigning. You may have claims that resignation could compromise, or you may be entitled to leave and claim constructive dismissal.

If performance management has started: Consider whether the process is genuine or a pretext. Seek legal advice early, your options narrow once formal warnings are issued.

Your Final Pay Action Plan

1. Identify your exit type using the Payout Matrix above
2. Calculate each entitlement using the formulas provided
3. Compare against your final payslip when it arrives
4. Send the late payment email if you’re not paid within 7 days
5. Contact Fair Workplace Solutions if your employer remains unresponsive

Your final pay isn’t a favour from your employer, it’s money you’ve already earned. Verify every dollar. Our team of employment lawyers are here to assist with any questions you may have, give us a call today!