Paying AL on return of Parental Leave

[KaliPPS]

Hi, I understand when leave is accrued whilst on parental leave, the leave is then paid out using AWE on their return; however, your below support note calculates the AWE on the last 4 weeks of gross earnings not 12 months as legislation states: https://help.myob.com/wiki/display/suppr/Setting+up+an+employee+on+parental+leave+and+paying+annual+... Can you please explain why this is the case? And suggest a work around? Cheers, Kali

[jenniek]

Hi @KaliPPS 

Is this for NZ Payroll or Australian? I see you are in Australia.

In NZ if the leave owing is Annual leave - then the actual ADP over 12 months is not used as any annual leave owing is ring fenced and the rate is preserved back to what they would have been paid at before going on parental leave. If the leave owing in accrued leave (technically not due) then ADP is used, and the rate will be below the ordinary rate of pay.