Negative Annual Leave accrual on Termination
Hi, one of our employees resigned, giving 2 week's notice. He had -44.5 hours accrued for Annual Leave, which we are taking off his final pays. His last week and a bit's pay will not quite cover the ...
Forum Discussion
Hi FionaH2,
In situations like this, you'll need to handle the final pay and the negative leave balance carefully. Typically, you would process the employee’s final pay as a regular pay for the hours worked during their last week, and then handle the negative leave balance as part of the final pay process.
To process the negative leave balance, you'll follow the steps for processing a final pay. Since the employee has a negative annual leave balance, you'll need to account for the repayment of the leave during termination. Here's a helpful guide that walks through the steps: Processing a Final Pay.
I hope this helps!
Regards,
Earl
Hi Earl_HD,
Thanks for getting back to me, I'll give this a go tomorrow and let you know. Just an additional note, the boss has decided he won't chase the employee for the overpayment of the amount that is over and above his net pay for the week. He'll wear the cost, its not that much. This shouldn't change things though.
So its essentially still the same process as a regular final pay then:
- Process the last weekly pay like a normal pay.
- Process the final negative AL balance separately with no tax following the Processing a Final Pay procedures.
Thanks for sending the procedures through.
I'll let you know how I go.
Kind Regards,
Fiona
