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Hi 11316127,
Lovely question! What you’re seeing is actually expected behaviour based on how leave without pay affects annual leave. You’re definitely on the right track, you can handle it either way you mentioned: you can change their anniversary date or leave it as is, depending on what you and your employee agree on.
This link has more info on paying leave (just scroll down to “If an employee is taking leave without pay”). I’ve also found another guide that gives more detail if you’ve got further questions about paying leave without pay. Hope this helps.
Cheers,
Princess
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