Final Annual Pay Clause Samples
The "Final Annual Pay" clause defines how an employee's last annual salary is determined, typically for the purposes of calculating benefits, severance, or other compensation upon termination or retirement. This clause usually specifies what components are included in the final pay calculation, such as base salary, bonuses, or allowances, and may clarify the relevant time period or any adjustments for partial years. Its core function is to ensure both parties have a clear, agreed-upon method for determining the employee's compensation at the end of employment, thereby preventing disputes and ensuring fairness in final payments.
Final Annual Pay. 2.1.1. Final pay is determined by the gross ordinary time earnings for the 12 months prior to separation or the substantive salary/wage at the time of separation whichever is the higher. It does not include leave loading or overtime and is not the employee’s pay at the time of separation, converted to an annual rate. However, it shall include allowance payments which are by this Agreement, payable for all purposes.
Final Annual Pay. 2.1.1 Final pay is determined by the gross ordinary time earnings for the 12 months prior to separation or the substantive salary/wage at the time of separation whichever is the higher. It does not include leave loading or overtime and is not the employee’s pay at the time of separation, converted to an annual rate. However, it shall include allowance payments which are by this Agreement, payable for all purposes.
2.1.2 If an employee has been in receipt of a continuous higher duty allowance for the 12 months immediately preceding the acceptance of a TVSP then this allowance will be included in the final annual pay calculation.
2.1.3 If an employee has been required to perform higher duties and paid a higher rate in accordance with award Mixed Function provisions for at least 50% of his or her time for a continuous period of at least 12 months immediately preceding the date of acceptance of a TVSP then the actual fortnightly allowance will be included in the final annual pay calculation.
2.1.4 Where an employee has, during 50% or more of pay periods in the 12 months immediately preceding the date on which he or she receives notice of separation, been paid an allowance for shift work, the weekly average amount of shift allowance received during the 12 month period shall be counted as part of a week’s pay. Where Service Pay is paid this amount will be included in determining the final weekly wage.