When should I receive my final pay after leaving a job?
Short answer
Normally on your usual pay date after employment ends, although a notice period spanning two cycles can split it into two payments. Unreasonable delay is an unlawful deduction from wages, claimable at tribunal after Acas conciliation. Final pay should cover outstanding wages, notice pay, accrued holiday and contractual bonuses.
There is no statutory deadline stamped on final pay, but the practical rule is straightforward: it should reach you on the normal pay date following the end of your employment. If your notice runs across two pay cycles, expect two payments. Unreasonable delay beyond that is an unlawful deduction from wages, which you can pursue at the employment tribunal after notifying Acas.
What should be in it
- All outstanding wages up to your last day
- Notice pay, or a payment in lieu of notice if your contract provides for it
- Accrued but untaken holiday, paid out on termination
- Any contractual bonus or commission that has fallen due
Statutory redundancy pay is separate from wages and is paid in addition. You are entitled to a payslip showing every deduction, exactly as during employment.
Which deductions are lawful
An employer may only deduct where there is a clear written contractual clause, your written consent, or statutory authority such as PAYE and National Insurance. Repayment of a salary advance or a season ticket loan is usually fine. Two situations cause most disputes:
- Training costs. A repayment clause must have been agreed before the training, and be reasonable and proportionate. Clauses demanding full repayment years later, or regardless of whether you gained a qualification, are frequently unenforceable.
- Failure to work notice. Employers often withhold wages as leverage. That is generally unlawful: their remedy is a breach of contract claim for losses actually caused, not a deduction from money you have already earned.
Deductions for tools, uniforms or equipment required for the job must never take your pay below the National Minimum Wage.
Two loose ends to chase. If your P45 does not arrive, ask in writing and then contact HMRC, and tell your new employer so they can operate an emergency code rather than overtax you. And if your employer is insolvent, claim unpaid wages, notice and holiday pay from the Insolvency Service through the National Insurance Fund, subject to a statutory weekly cap.
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