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If an employee takes leave without pay (sometimes called a leave of absence) reduce the employee's Normal hours when doing a pay run. Whether it's only a few hours or their entire pay period, the process is the same.

Check your obligations

In Australia and New Zealand, some types of unpaid leave may be a statutory entitlement. Check with the relevant statutory body to find out more.

In Australia, the Fair Work website is a good pace to start. In New Zealand, start with the Employment New Zealand website .

To reduce the employee's Normal hours

Let's say an employee takes 7.6 hours unpaid leave (this is 1 day in a 38 hour week). When you process their pay, reduce their Normal hours by 7.6. You can also add a note to describe what's happened.

Unpaid leave period greater than one week (New Zealand only)

If an employee takes a continuous period of leave without pay in excess of one week (excluding sick or unpaid bereavement leave), their anniversary date for their next annual leave entitlement moves out by the amount of leave taken (excluding the first week).

To adjust the anniversary date:

  1. Go to the Payroll menu and choose Employees.
  2. Click to open the employee's record.
  3. Click the Leave tab.
  4. Adjust the anniversary date by the amount of leave without pay taken in excess of one week.
  5. Click Save.