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We have an employee on extended LWOP (for several months). I have not been running a pay for him at all but am wondering now if his annual leave is accumulating while he is on leave and if so, how I avoid this happening. Should I be running a pay each week using the UNPDLV code?
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In New Zealand annual leave is based on a set amount each entitlement year and it doesn't look at if the employee is working or not.
If the employee is taking leave without pay you would generally process a pay for that particular week for using the UNPDLV unpaid leave pay code. If that employee is taking an extended period of leave without pay you could look at either:
New Zealand Payroll Support Note: Recording unpaid leave in excess of one week does go through each option available to you in more details. I would also recommend looking at New Zealand Payroll Support Note: How unpaid leave affects annual leave
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