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You can set up a new wage category to record unpaid leave in an employee's pay. This lets you enter the unpaid leave hours on the employee's pay, and provides a means of reporting on unpaid leave.

 

1. To create the unpaid leave wage category

Create a new wage category for the unpaid leave.

  • Depending on the type of leave being taken, name the category accordingly.
  • Select Hourly as the Type of Wages (regardless of whether this if for hourly or salary based employees).
  • Select the option Fixed hourly rate of and leave the rate as $0.0000
  • Click Employee to select the employee taking the unpaid leave.

 

2. To prevent leave accruing while on unpaid leave

If a leave entitlement shouldn't be accrued while taking unpaid leave, you'll need to modify the entitlement category. For example, an employee might not be entitled to accrue personal leave while taking unpaid leave. To check what your obligations are regarding this, visit the Fair Work website.

To exclude unpaid leave from accruing an entitlement

  1. Go to the Payroll command centre and click Payroll Categories.
  2. Click the Entitlements tab.
  3. Click the zoom arrow next to the entitlement.
  4. Click Exempt.

    If the Exempt button is greyed out and can't be clicked, it means this entitlement accrues by a set number of hours and can't be modified here. Instead, you'll need to manually change the accrued hours to zero when recording the unpaid leave.

  5. Select the Unpaid Leave category created earlier.
  6. Click OK then click Close.