Institute of Certified Bookkeepers
Level 27, Rialto South Tower
525 Collins Street, Melbourne Vic 3000
Tel - 1300 85 61 81
Fax - 1300 85 73 93
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When is the employer allowed to deduct the notice period not worked from an employee's pay from the net value of the termination pay?
There are two situations where the employer is able to deduct the notice period worked:
The first is where the employee abandons their employment when they do not return to work, and have not notified the employer. This often comes into effect after being absent for three days or more. This is in addition to the employer attempting various ways to contact the employee however, to no avail.
The second is when the employee has resigned and has requested to work out only part of their notice period however; the employer has not agreed to this and would like them to work the full period. The employee then only works what they choose and do not return for the balance of the notice period.