Home > Online Tools > FAQ Knowledgebase > Payment for monies owed if leaving without notice

Payment for monies owed if leaving without notice

Can the employer deduct wages or holiday pay if an employee fails to work their notice period?


If an employee resigns without giving the required amount of notice, an employer cannot make deductions or withhold their wages or holiday pay unless the employee has given their written consent.

A written employment agreement may include a clause giving the employer permission to deduct wages or holiday pay if an employee resigns without giving the required notice.

This clause may be enforceable if:

  • the employee has been given adequate opportunity to consider and seek independent advice on the terms and conditions of the employment agreement; and
  • the employee has signed the employment agreement.

Any subsequent deductions from wages or holiday pay in reliance on that clause must take into account:

  • the loss suffered by the employer as a result of the employee failing to work their notice period; and
  • the proportion of the notice period that the employee fails to work.

Click here to find out about problem solving procedures

Click here for further information on pay and deductions

Date Modified: Tuesday, 29 May 2012

Disclaimer: The content on this website covers common problems. It will not answer every question and should not be used as a substitute for legislation or legal advice.State sector employers and employees may be affected by some differences in the laws that apply to them (e.g. State Sector Act 1988).The Department of Labour takes no responsibility for the results of any actions taken on the basis of information on this website, nor for any errors or omissions.