Summary

In New Zealand, employees can request up to 1 week of statutory annual leave as a cash payout, instead of taking the leave. Some employers provide extra annual leave entitlement and allow employees to be paid out for this non-statutory portion of their annual leave.

Statutory Annual Leave Payouts

Statutory annual leave payout transaction forms contain the following differences to an annual leave transaction form:

• Only the Outstanding section is enabled along with a few fields in the Advance section (such as Job Code, Cost Centre Code, Transaction total and Recalculate).
• Pay extra week only, Pay out all accrued and Extra Week Paid are set to "No" and disabled.
• Suppress auto pays until and Year Paid fields are disabled.
• Holiday start date and Holiday end date default to the pay period start date.

  Note: When you add an annual leave payout transaction, the Holiday start date and Holiday end date values default to the pay sequence start date. However, the Leave Taken value in the PGPRLEAV018 report is derived from the transaction start and end dates so it may not reflect the units paid out. For example, if you add a payout transaction for 5 days, but the start and end dates are the same, then PGPRLEAV018 will display a Leave Taken value of 1 for that transaction. If you want PGPRLEAV018 to display a Leave Taken value that reflects the days paid out, then enter Holiday start date and Holiday end date values that correspond to the units being paid out. For example, if you add a payout transaction for 5 days and enter start and end dates that span 5 days, then PGPRLEAV018 will display a Leave Taken value of 5 for that transaction.

• If you enter a Reduce by value that is greater than the employee's statutory payout unit Balance, then the following error message appears when you click OK:

  "You cannot enter a Reduce by value that is greater than the employee's payout Balance, which is <>."

• Transaction dates are not displayed on the History Analysis Leave Calendar.
• When you close the pay, PayGlobal writes the annual leave entitlement year in which the payout was made into Text tab.

Non-statutoryAnnual Leave Payout

Non-statutory annual leave payout transaction forms contain the following differences to an annual leave transaction form:

• Holiday start date and Holiday end date values default to the pay period start date.
• Transaction dates are not displayed on the History Analysis Leave Calendar.
• When you close the pay, PayGlobal writes the annual leave entitlement year in which the payout was made into Text tab.

Process Pay

If you try to process pay that contains a statutory annual leave payout transaction with a Reduce by value that is greater than the employee's statutory payout unit Balance, then processing fails and the following error message appears in the audit log:

"The annual leave Reduce by value cannot be greater than the employee's payout Balance. Please correct the Reduce by value."

Note: When you terminate an employee, PayGlobal will use an allowance with Payout type = "None" to pay out annual leave on termination, it will not use allowances with Payout type = "Statutory" or "Non-statutory".

Extra Week Annual Leave

If you provide employees with extra week leave, then do not include extra week leave transactions in the same pay as annual leave payout transactions because pay processing results could vary. You need to add these transactions in separate pays. For example, you could include the employee's extra week leave transaction in a Standard pay and their annual leave payout transaction in a Manual pay for the same period.