Everyone
Pay periods and paydays
When and how often an employee is paid, for example, weekly, fortnightly or monthly, varies between workplaces. The employment agreement or a workplace policy should say when payday is.
Employee rights
The law does not say how often or what day an employee should be paid – this information should be in their A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.
Employees must be paid in money and employers must not tell employees how to spend their pay.
Employees must be paid for:
annual holidays — before the holiday starts, unless they agree to be paid in their normal pay cyclePaid time away from work for rest and recreation.
sick ,Paid time away from work that eligible employees can take to care for themselves, their partners or children, or other dependants.
bereavement orPaid time away from work that gives an eligible employee time to grieve and to take care of matters if someone close to them dies. It can be taken at any time and for any purpose relating to the bereavement.
family violence leave — in the pay period when the leave is takenPaid time away from work that eligible employees can take if they, or a child who lives with them, are affected by family violence.
- a
public holiday — in the pay period when the public holiday fallsAn observed day of national, religious, or cultural significance. Special payment rates and entitlements apply to public holidays.
- an
alternative holiday — in the pay period when the alternative holiday is taken.A paid day off to take at another time. Employees get an alternative holiday when they work on a public holiday that is an otherwise working day.
Pay period
The pay period is the length of time an employee gets paid for each payday. If they’re paid fortnightly, their pay period is 2 weeks.
If they're paid:
- wages (by the hour), they will usually be paid after the pay period. For example, Mike is paid on Monday for the pay period from Monday to Sunday last week.
- a salary, they may be paid before the end of the pay period. For example, Shanti is paid fortnightly, in the middle of her pay period. This means Shanti is paid 1 week in advance (before she does the work) and 1 week in arrears (after she has done the work).
Payday
Employees are usually paid on a regular day each week, fortnight or month. For example, payday may be every Thursday or every second Wednesday.
If an employment agreement does not say when payday is, the employee should:
- ask their employer how often, and when, they will be paid before they sign the
employment agreement , andA written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement.
- ask for this to be included in the agreement so that there is no confusion.
Employers must consider their An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way.
When payday changes
In some situations, payday might move to a different day. For example:
- payday is usually the 15th of the month, but this month the 15th is a Sunday
- payday falls on a public holiday.
If employees are going to be paid on a different day to usual, the employer should tell them when they will be paid:
- when the employee first starts work — for example, by including a process for what happens when payday moves in the employment agreement, or
- at the time, if the change to payday was unexpected.