Terminating Employment - Notice Periods

Last Member Update we looked at what to do prior to termination of employment, in order to protect your commission.

You also need to observe the required Notice Periods, so that your employer can't withhold monies (as compensation) from your commission.

Most sales people are paid commission in some form, and are often surprised to be told they have to "give notice". After all, if you want to leave, you just leave, don't you?

In the past, that's certainly how it was - but things have changed.

Regardless of how you're paid, when it comes to termination of employment, there are certain rules which must be followed.
To put this issue in perspective, the PSAQ would ask the following questions:

  1. Question 1.
    Do you believe that your ability to earn an income should be able to be suddenly removed from you?
  2. Question 2.
    In the same vein, should a business owner suddenly be faced with difficulty in providing the staff needed to generate income for his or her business?

Notice periods exist to ensure that either party has time to make the adjustments brought about by their changed circumstances.

Employment legislation prescribes compensation for both employee and employer - depending on who disadvantages the other - if notice periods aren't followed.

Notice periods are based on length of service, and are clearly set out in the Award (a copy is available from the PSAQ web site).

Also on the web site is a Letter of Termination for employees to use in giving notice to their employer, together with a separate Mutual Agreement to Waive Notice Period.

Often the employee and employer do agree to waive notice periods - the important thing, in order to minimise disputes, is to make sure that such an agreement is in writing.

Over the past few months, numbers of our members have found themselves embroiled in unnecessarily-bitter arguments over this issue while others, having taken heed of our advice, have had a relatively harmonious outcome.

If you're thinking of terminating your current employment, why not make it as painless as possible?

Give the employer the appropriate notice and/or put any agreement to waive the notice period in writing.

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