Staff pay

When a worker leaves your employment, you must give them:

• any outstanding pay, including overtime
• pay in lieu for any untaken holiday
• bonus payments, if earned
• any statutory sick pay, if they are entitled to it
• pay instead of notice if you do not require them to work their notice period - note that the contract of employment must provide for this, otherwise the employee must agree to it
• redundancy payment, if due

If the worker leaves before or during their statutory maternity or adoption pay period, you must also start paying - or continue to pay - them statutory maternity or adoption pay.

You could also give them:

• a pension refund, depending on the rules of the scheme
• a lump-sum payment as compensation for loss of their job
• an enhanced redundancy payment if you have made them redundant - this might be either contractual or paid on a discretionary, and non-discriminatory, case-by-case basis

What you should deduct from a worker's final pay

You must deduct the following items from what you owe the worker:

• income tax
• relevant National Insurance contributions

You might also need to consider deductions in respect of matters such as:

• money given for season ticket loans
• any other outstanding loans
• amounts to be paid under any car leasing agreements