Navigating the early termination of a contract can sometimes be tricky - it's important to get certain items right so that both the worker, your recruitment agency and your client are left feeling positive.
General tips.Always make sure that the notice period terms and conditions in your client and worker agreements align - this seems simple, but a difference in terms and conditions when it comes to worker vs client expectations can end up leaving you out of pocket.
For example, is it clear in both contracts what conditions might result in immediate termination? If the worker has breached particular terms or a policy that results in immediate termination; can you be certain that the worker has read the requisite policy or have viewed and understood the behaviours required of them by your client (eg. in a code of conduct)? Do the notice period lengths match in both contracts?
How regularly are you making contact with your clients and workers? Keeping up conversations can assist with getting ahead of any potential issues or changes to workforce and workload. Understanding sooner, rather than later, that the situation at your client is changing and a worker needs to be finished up can really assist in how you move through this process.
A worker has handed in their notice, what do you need to do?
Establish whether the worker will work out their notice period. If they are asked by the client not to work the notice; is it clear whether they will be paid out their notice period?
A client has asked you to give a worker their notice, what do you need to do?
Establish whether the worker will work out their notice period. It is also important that you provide notice in writing to the worker; to ensure that you’re acting in line with the contractual terms that you’ve provided.
If you can manage the end of a contract well; you’ll be sure to leave a positive impression with your client and the worker. Having more control over the delivery and messaging of a contract termination can also better protect your business from adverse outcomes.
When do you need to notify Oncore?
Immediately. The sooner that you notify us, the sooner that we can take required action and ensure a smooth offboarding experience for your worker. It is critical to ensure prompt payment of wages or notice period at the end of a contract; and notifying Oncore as soon as a contract concludes is one way to ensure this occurs. Oncore can also provide you with support in how to manage this process, especially if you have any questions.
What information does Oncore need?
For Single Touch Payroll (STP) compliance, Oncore needs to know the following information when a contract concludes:
The reason for termination - Voluntary Cessation, Ill Health, Deceased, Redundancy, Dismissal, Contract Cessation or Transfer
We need to note this in our systems for STP reporting purposes.
We also need to know whether the worker will be working or not working their notice period.
If the worker is working their notice period; we will proceed with processing their final payment in line with our standard process.
If Oncore will be processing a payment in lieu of notice, we will need the this additional information:
- The start date of the notice period.
- The end date of the notice period.
- The total number of days payable and hours per day payable if on an hourly rate.
- Payment terms for the invoice, if they differ from the original contract payment terms.
- Whether we need to process the notice period payment prior to the next scheduled pay cycle.
Please note that if your agency insures your own workers; Oncore are not able to process payments in lieu of notice due to the specific categorisation and STP reporting requirements. Please contact our team via 1300 654 484 or supportaus@oncoreservices.com to discuss further if required.