When an employee returns to work after a period of parental leave, any annual holidays taken are paid at the rate of the employee's Average Weekly earnings for the 12 months immediately If the employee... | then... |
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has unused annual holidays before going on parental leave | The normal calculation for annual holidays will apply to those holidays—regardless of when they are taken. They are paid at the greater of ordinary weekly pay or average weekly earnings at the time they take the annual holidays. | becomes entitled to annual holidays during parental leave (or in the next 12 months after their return) | The pay for those annual holidays is calculated at the rate of the employee’s average weekly earnings over the 12 months just before the end of the last pay period before the annual holiday |
.This differs from the normal way of paying annual leave which is at the greater of the Ordinary Weekly pay or the Average Weekly earnings.is taken (with no comparison to ordinary weekly pay). If this is the case for your employee, complete the steps below to process the leave. |
For more information on this ruling please , refer to the Department of Labour. Our page Parental leave affecting annual leave and annual holidays might also be useful. - Go to the Maintenance command centre and click Maintain Pay Codes.
- Click the ANHL (Annual Leave) pay code.
- Click the General tab.
- Select the option Allow the rate to be modified when entering pay details.
- Go to the Prepare Pays command centre and click Enter Pays.
- Double-click the applicable employee.
- Click the Leave button on the right-hand side of the window. The Leave Due window is displayed.
Image Modified - Click the ellipsis button (...) for the Annual Leave calculation as shown below.
Image Modified - Click the ellipsis button (...) for the Ordinary Weekly Pay as shown below.
Image Modified - Select the option Use Average Weekly Pay as shown below. This will re-calculate the Annual Leave Rate to use the Average Weekly Earnings. This will also remove the Ordinary Weekly Pay calculation which is not required for this process.
Image Modified - Click OK. You will now be able to continue processing the pay as you normally would.
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