Notice you do not work in New Zealand: who pays and who does not

Four ways a notice period ends early

The employer approves annual leave inside the notice period

Employment New Zealand lists this as something an employer can agree to, for example where the employee wants a short holiday before starting a new job. The leave is paid as annual holidays.

The employer puts the employee on leave in lieu of notice

Employment New Zealand defines this as an agreed period when the employee remains employed and receives full pay but does not go to work. Full notice, full pay.

The employer waives all or some of the notice at the employee's request

Employment New Zealand says that in this situation the employee will not be paid for the portion of the notice period they do not work.

Instant dismissal for serious misconduct

The employee has to leave right away and is not paid for any part of the notice period, though statutory payments owed in the final pay still apply.

Instant dismissal is not a shortcut

Employment New Zealand says an employer can dismiss an employee without notice only if there has been a fair investigation, there has been a disciplinary process, and the employee's behaviour is considered to be serious misconduct. All three, not one. It also notes that there does not have to be a specific clause in the employment agreement for this type of dismissal, though having one sets clear expectations, and that the employer must still follow all the other rules for dismissal.

During a notice period that is worked

Employment New Zealand suggests the employer and employee agree a plan for completion and handover: making sure essential work is completed or assigned to someone else, organising and documenting important files and processes, and putting auto-forwards and out-of-office replies in place directing communications to someone else. Doing this well is also the practical answer to an employer who would rather pay the notice out than have it worked.

Put it in writing

Employment New Zealand's advice on any agreement to shorten a notice period, take leave inside it, or move to leave in lieu is the same: it should be in writing and signed by both the employee and the employer. The difference between a waiver and a payment is usually a single sentence in an email, and the pay outcome turns on it.

If a notice period was cut short and you are not sure which of these four situations applied, ask your employer in writing which one it was, and keep the answer.