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In force2026 Revised Edition
Contents

Part · Payment of Salaries

40. Payment on termination by employee

In plain English

An employee who resigns with the required notice must be paid all salary due on their last day. An employee who resigns without that notice, or before it runs out, must be paid within 7 days of leaving. The employer may deduct any sum the employee owes in place of notice, unless a court or the commissioner orders otherwise.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

(1)

Subject to the provisions of this Act, the total salary due to an employee who terminates his contract of service with his employer under section 26, or after giving prior notice to the employer as required under section 22, shall be paid to him on the day on which the contract of service is terminated.

(2)

Subject to the provisions of this Act, the total salary due to an employee who —

(a)

terminates his contract of service without giving prior notice to his employer as required under section 22; or

Employment

(b)

has already given prior notice under section 22, but the employee terminates his contract of service without waiting for the expiry of the notice, shall be paid to him not later than 7 days after the day on which the contract of service is terminated.

(3)

The employer may, subject to any order made by a court or the

Commissioner to the contrary, deduct from the salary due to the employee such sum as the employee is liable to pay in lieu of prior notice under section 23(1).

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