NZ Payroll, Cash out MORE than 1 week, it's legal but not allowed in MYOB

Phil_mtc

UPDATE: Back in Oct 2019, Steve M advised to work around this by changing normals hours per week to 80, process the cash out, then reset.  This does work, but we're looking for a fix in the software if at all possible to match the law as stated......

 

Hi, on the https://www.employment.govt.nz/ website under document "Cashing-up annual holidays", the final paragraph states: "Cashing up additional holidays in employment agreements
If their employment agreement provides annual holidays in addition to the minimum four weeks, it may also provide for the additional holidays to be cashed up, for example, if the employment agreement provides five weeks’ annual holidays per year and two weeks could be cashed up, this would be allowed."

 

NZ Payroll has a fixed limit of "Normal Hours Per Week" to be cashed out, we have multiple employees who get 5 weeks annual leave and can therefore have 2 weeks cashed out.  Can we please modify the logic in cashed out leave to match the law.  Cashout hours available = "Annual Leave Entitlement" - 3 Weeks (the reserved amount NOT allowed to be cashed out) - Cashout Hours already paid - Simplez !

 

If we could have this in the next release of NZ payroll, that would solve a long standing issue we have with this.

 

Thanks,

Phil

Steven_M

Hi @Phil_mtc 

 

While you are able to cash up more annual leave than 1 week under certain circumstances, the software has been designed to prohibit the ability to pay out that leave unnecessarily. This is to compile with the majority of cases where they are only allowed to cash out 1 week's worth of annual leave a year.

If you are needing to pay out more than one week's annual leave a year, updating the Normal Hours per Week, processing the desired pay and then updating back would be the way in which it can be completed. Although, we do recommend ensuring that you have reviewed the pay rate of that annual leave that is being cashed up and you do consult Employment NZ or a similar organisation as to whether you meet those additional circumstances 

 

As to whether the software will allow that functionality in the future. To my knowledge, while we are always looking to ensure that the annual leave is paid out effectively and meets the Holidays Act, I don't foresee any major changes to the Annual Leave Cashed Out code being implemented in the future of that product range.