While many modern awards state that termination entitlements are
payable within 7 days of termination, recent case law has stressed
that statutory entitlements must be paid on the day of
termination. Failing to do so constitutes a breach of the
Fair Work Act 2009 (Cth) (FW Act) and exposes employers
and senior managers to penalties imposed by a Court.
This was recently reinforced in the decision of Jewell v
Magnium Australia Pty Ltd (No 2) [2025] FedCFamC2G, where the
Federal Circuit and Family Court of Australia imposed a penalty of
$18,600 on the employer for non-compliance.
In the case, Dr Jewell's final day of employment was 21
April 2023. However, rather than paying his termination
entitlements on that day, Magnium chose to make the payment during
its standard payroll period which was 12 days later. The Court held
that this delay constituted a breach of sections 117 (2) and 90(2)
of the FW Act.
