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Changing employee from casual to permanent

ATL
2 Posts
Cover User
New Zealand

Changing employee from casual to permanent

I need to change an employee from casual to permanent but when I do it shows that he has leave accrued which is incorrect, as he has already been paid the 8% holiday in each weeks pay.

On the leave details screen it won't let me zero the hours, so how do I adjust this?

1 REPLY
MYOB Moderator Steven_M
17,876 Posts
MYOB Moderator
New Zealand

Re: Changing employee from casual to permanent

Hi @ATL

 

The Leave Accrued in Advance value in New Zealand Payroll is an estimated calculation based on the annual leave entitlement, weeks since the last anniversary date of the employee and pay period date. In short the calculation is:

 

(Annual leave entitlement / 52) x number of weeks since last anniversary based on current pay end on date.

 

This value is not something that can be changed without the removal of the annual leave entitlement and/or holiday anniversary date, which is something that we don't normally recommend.

However you mentioned that the employee is moving from a casual to a permanent so I would be asking yourself what is going to occur at the employee's next holiday anniversary date? As on that date the value that is entered into the Annual leave entitlement will roll through. So if they have been a casual and had their holiday pay paid out then maybe they should't receive that full entitlement? I would be working out if the employee changing working status deems that they have started a new contract and thus their holiday anniversary date resets. If yes, their annual leave entitlement will accrue from the date they moved. If not does their time working as a casual needs to be taken into account and their annual leave entitlements hours at the next anniversary needs to be reduced.


Kind Regards,
Steven
MYOB Client Support
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