Section 40
Payment on termination by employee
(1)
Subject to the provisions of this Act, the total salary due to an employee who terminates his contract of service with his employer under section 26, or after giving prior notice to the employer as required under section 22, shall be paid to him on the day on which the contract of service is terminated.
(2)
Subject to the provisions of this Act, the total salary due to an employee who —
(a)
terminates his contract of service without giving prior notice to his employer as required under section 22; or
Employment
B.L.R.O. 2/2026 35
(b)
has already given prior notice under section 22, but the employee terminates his contract of service without waiting for the expiry of the notice, shall be paid to him not later than 7 days after the day on which the contract of service is terminated.
(3)
The employer may, subject to any order made by a court or the
Commissioner to the contrary, deduct from the salary due to the employee such sum as the employee is liable to pay in lieu of prior notice under section 23(1).