After resignation in South Africa, an employee should usually receive their final salary, pay for days worked, accrued annual leave and any other contractually owed amounts. The Basic Conditions of Employment Act requires payments due on termination to be made within seven days after the employment contract ends. (South African Government)
What is a salary payout after resignation?
A salary payout after resignation is the final amount an employer pays when an employee leaves voluntarily.
It may include:
- Salary or wages up to the last working day
- Accrued annual leave pay
- Overtime, commission or bonuses already earned
- Payment instead of notice, if applicable
- Any agreed allowances or reimbursements
It may also include lawful deductions, such as PAYE, UIF, pension contributions, loans or authorised deductions.
What must be paid after resignation?
Salary up to the last day worked
The employer must pay the employee for all days actually worked before employment ends.
If the employee resigns and works their notice period, normal pay should continue until the final day.
Accrued annual leave
Employees are generally entitled to be paid out for accrued statutory annual leave when employment ends. The Department of Employment and Labour’s annual leave guidance confirms that annual leave accrues during each leave cycle. (Department of Labour)
This does not usually include sick leave or family responsibility leave, unless a contract or policy gives extra rights.
Notice pay
If the employer asks the employee not to work the notice period, the employer may need to pay instead of notice.
If the employee resigns without giving proper notice, that may be a breach of contract. However, the employer should be careful about simply deducting notice pay from the final salary without proper legal authority or written consent. Section 34 of the BCEA restricts deductions from remuneration. (Labour Guide South Africa)
Notice periods after resignation
Under the BCEA, minimum notice is generally:
- 1 week if employed for six months or less
- 2 weeks if employed for more than six months but not more than one year
- 4 weeks if employed for more than one year
A contract may require a longer notice period, provided it is lawful and fairly applied. (Labour Guide South Africa)
Can an employer withhold final salary?
An employer should not withhold final salary as punishment because an employee resigned.
Deductions generally need to be authorised by law, a court order, an agreement, or written employee consent. This is especially important where an employer wants to recover loans, training costs, damages, equipment costs or short notice. (Labour Guide South Africa)
Common deductions from final pay
Final pay may lawfully include deductions for:
- PAYE tax
- UIF
- Pension or provident fund contributions
- Medical aid contributions
- Staff loans, if properly authorised
- Damaged or unreturned company property, if legally recoverable
- Other written deductions agreed in the employment contract
Employers should provide a payslip or final payment breakdown.
What employees should do
Employees should:
- Resign in writing
- Check their employment contract
- Confirm the last working day
- Ask for a final payslip
- Confirm leave balance
- Return company property
- Keep copies of resignation emails and payslips
If final pay is not made, the employee can follow up in writing and may approach the Department of Employment and Labour, CCMA or Labour Court depending on the issue.
What employers should do
Employers should:
- Confirm the resignation and final working day in writing
- Calculate salary up to the last day worked
- Pay accrued annual leave
- Apply only lawful deductions
- Provide a final payslip and IRP5 where applicable
- Avoid withholding pay as leverage
A clear exit process reduces disputes.
FAQ: salary payout after resignation
When must final salary be paid after resignation?
Final payments due on termination should generally be paid within seven days after the employment contract ends. (South African Government)
Do you get paid leave after resignation?
Yes, accrued annual leave is usually paid out when employment ends. Sick leave and family responsibility leave are not normally paid out unless the contract says so.
Can my employer deduct notice pay if I resign immediately?
Not automatically. The employer may have a claim if you breached your notice period, but deductions from salary must comply with the BCEA and usually require legal authority or written consent.
Can an employer refuse to pay because I resigned?
No. Resignation does not remove the employee’s right to be paid for work already done and amounts legally owed.
What if my final salary is wrong?
Ask for a written breakdown first. If the issue is not resolved, you can escalate through internal HR processes, the Department of Employment and Labour, CCMA or legal advice.
Sources
- https://www.gov.za/sites/default/files/gcis_document/201409/a75-97.pdf
- https://www.labour.gov.za/DocumentCenter/Pages/Basic-Guide-to-Annual-Leave.aspx
- https://labourguide.co.za/general/resignations-the-basics
- https://labourguide.co.za/general/termination-of-employment
- https://cea.org.za/payments-and-deductions-on-termination/
