Annual leave rollover after being on parental leave

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Contributing User MAC53
6 Posts
Contributing User
New Zealand

Annual leave rollover after being on parental leave

Hi there

 

I am back again with a new query but on the same employee - last post was August 2016. I use MYOB payroll and I didn't do the unpaid leave thing while this employee was away on parental leave - it will still calculate the average over the last 52 weeks though, won't it? Is it wiser to do this way?

 

My real question is the no. hours of annual leave accrued to become annual leave entitlement. She used to work 41 hours per week but came back in October and has only been doing 2 days of 8 hours since. Her work anniversay is 12th Jan. so I have 3.5 months of 16 hours but during the whole time off should I use the 41 hours/week? She already has 77 hours Annual leave due so she is likely to have most of this current rollover at a full rate - she will proably not use annual leave until October when her average will return to her regular rate of pay.

2 REPLIES
Ultimate Partner jenniek
2,072 Posts
Ultimate Partner
New Zealand

Re: Annual leave rollover after being on parental leave

Hi there @MAC53

Yes - I agree - the leave accrued while your employee was away on maternity leave is accrued at the hours she used to work, but an adjustment should be done for the decrease on hours since she returned to work at a lesser number of hours. However you mention that she would be paid 77 hours at her full rate of hours - incorrect. Annual leave is paid at the average of the last 52 weeks earnings - "when she goes on holiday" The complication comes that because maternity leave is accrued at NIL $ - her average earnings will be below her normal rate of pay because of that time earned at NIL. This will slowly increase over the 1st 12 months back - so ALL leave is paid at that rate if she takes leave in the first 12 months after coming back to work.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Contributing User MAC53
6 Posts
Contributing User
New Zealand

Re: Annual leave rollover after being on parental leave

Hi there

 

Thanks for your reply Jennie. I have attached her card details which now looks like this and on there it still calculates her annual leave at her normal hourly rate. I know I can overide that and do at average of last 52 weeks so I presume I do that every time she takes annual leave over the next year.

Is there any advantage to inputting their leave as unpaid leave while they are on parental leave? I have a couple of others on that leave right now, so would like to know if I should be.

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