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DeeKay's avatar
DeeKay
Experienced Cover User
2 years ago

Paying Unused Annual Leave over multiple pay runs after resignation?

I have searched the forum but can't seem to find an answer...

 

An employee has resigned. She has over 200 hours of unused annual leave. She has asked me to pay it to her in smaller instalments over a number of weeks (we do a weekly pay run).

 

What are the legal implications to myself/the business if I did this? 

 

I understand how to calculate the tax on Unused Annual Leave if I processed it in a bulk amount, I more just want guidance on legalities around why I CAN'T pay it as normal A/L over a few pay runs.

 

Thank you!

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    2 years ago

    Hi DeeKay 

     

    Thanks for your post. We're not permitted to provide advice on the legal obligations/requirements for payroll. You would need to contact Fairwork or the ATO for assistance with this.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • DeeKay's avatar
      DeeKay
      Experienced Cover User
      2 years ago

      I have spent hours looking through both Fairwork and ATO websites. The only reason I am asking is becaise a post I read on this forum in reply to someone asking how to actually do the A/L payment said "you are aware of the legal implications of this?". Can you link me to a page on the above two websites where I can read this for myself then?

      Thank you

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        2 years ago

        Hi DeeKay 

         

        If you can't find anything on those websites you may need to call them or speak to your accountant. You could also try the ATO Community Forum.

         

        Please don't hesitate to post again if you need help in the future.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.