Annual Leave Reappears After Reactivating Terminated Employee

I’m reaching out regarding an issue we’ve encountered with the payroll system related to terminated employees and their annual leave balances.

After processing the final pay for a terminated employee — including full payment of any accrued annual leave — we entered their termination date and marked them as inactive. At the time of deactivation, we confirmed that their leave balance was correctly reduced to 0 hours.

However, when we needed to reactivate the employee to review some records, we cleared the termination date and set their status back to active. Unexpectedly, their previously paid-out annual leave hours reappeared in their leave balance.

This is causing confusion, as it appears the leave was never paid out — even though it was fully processed at termination.

Is there a way to ensure that once an employee is terminated and their leave is paid out, reactivating them will not repopulate their leave balance? We would like the leave balance to remain at zero to reflect the accurate final payout.

Thank you for your assistance.