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Annual Leave Payout Scenarios (NZ)

Summary

For simplicity, most of the following scenarios use an employee who accrues 4 weeks of annual leave per year on a quarterly basis and their leave table rolls over annually.

Note: Employees can request a payout only after their annual leave table rolls over on or after 01/04/2011.

Scenario 1

Employee cannot request any annual leave payout in their first year of employment, but they can be paid out for 1 week in their second year.

Annual Leave

Year 1

Q1

Q2

Q3

Q4

Year 2

Q1

Q2

Q3

Q4

Entitled

0

 

 

 

 

4

 

 

 

 

Payout balance

0

 

 

 

 

1

 

 

 

 

Accrued

 

1

2

3

4

 

 

 

 

 

Units available

 

1

2

3

4

4

 

 

 

 

Taken

 

 

 

 

 

 

 

 

 

 

Payout paid

 

 

 

 

 

 

 

 

 

 

 

Cannot request any payout

Can request payout for 1 week

 

Scenario 2

Employee can be paid out for 1 week in their second year. However, if they do not take any payouts or leave in their second year, they become entitled to 8 weeks' annual leave in their third year, but they can be paid out for only 1 week in their third year.

Annual Leave

Year 2

Q1

Q2

Q3

Q4

Year 3

Q1

Q2

Q3

Q4

Entitled

4

 

 

 

 

8

 

 

 

 

Payout balance

1

 

 

 

 

1

 

 

 

 

Accrued

 

1

2

3

4

 

 

 

 

 

Units available

4

5

6

7

8

8

 

 

 

 

Taken

 

 

 

 

 

 

 

 

 

 

Payout paid

 

 

 

 

 

 

 

 

 

 

 

Can request payout for 1 week

Can request payout for 1 week

 

Scenario 3

Employee can take annual leave payouts from entitled annual leave only, even though they may have some accrued annual leave available.

Annual Leave

Year 2

Q1

Q2

Q3

Q4

Year 3

Q1

Q2

Q3

Q4

Entitled

4

2

1

0

 

0

 

 

 

 

Payout balance

1

 

 

0

 

0

 

 

 

 

Accrued

 

1

2

3

4

 

 

 

 

 

Units available

4

3

3

3

 

0

 

 

 

 

Taken

 

2

1

1

 

 

 

 

 

 

Payout paid

 

 

 

 

 

 

 

 

 

 

 

Can request payout for 1 week

Cannot request any payout

Scenario 4

Employee can take payouts out in parts of week.

Annual Leave

Year 2

Q1

Q2

Q3

Q4

Year 3

Q1

Q2

Q3

Q4

Entitled

4

1

0.5

0

 

4

 

 

 

 

Payout balance

1

 

0.5

0

 

1

 

 

 

 

Accrued

 

1

2

3

4

 

 

 

 

 

Units available

4

2

2.5

3

4

4

 

 

 

 

Taken

 

3

 

 

 

 

 

 

 

 

Payout paid

 

 

0.5

0.5

 

 

 

 

 

 

Scenario 5

Employee took leave almost as fast as they accrued it so they can take a payout of only 0.5 week in their third year.

Annual Leave

Year 2

Q1

Q2

Q3

Q4

Year 3

Q1

Q2

Q3

Q4

Entitled

0

 

 

 

0

0.5

 

 

 

 

Payout balance

0

 

 

 

0

0.5

 

 

 

 

Accrued

 

1

2

3

4

 

 

 

 

 

Units available

 

1

2

3

0.5

0.5

 

 

 

 

Taken

 

 

 

 

3.5

 

 

 

 

 

Payout paid

 

 

 

 

 

 

 

 

 

 

Scenario 6

Employee has 8 weeks' annual leave: 4 weeks statutory and 4 weeks non-statutory. The employer agrees that the employee can request a payout for the 4 weeks non-statutory leave and their non-statutory leave can accumulate year by year.

Annual Leave

Year 2

Q1

Q2

Q3

Q4

Year 3

Q1

Q2

Q3

Q4

Entitled

8

 

 

 

 

16

 

 

 

 

Statutory payout balance

1

 

 

 

 

1

 

 

 

 

Non-statutory payout balance

4

 

 

 

 

8

 

 

 

 

Accrued

 

2

4

6

8

 

 

 

 

 

Units available

8

10

12

14

16

16

 

 

 

 

Taken

 

 

 

 

 

 

 

 

 

 

Payout paid