Fields

Payout unit:

This indicates the unit that leave will be paid out in if it differs from the Entitlement Unit. This is only visible when using an Entitlement Unit of ‘Weeks’ and will be automatically set to ‘Hours’

Outstanding unit payout rate/rule:

PayGlobal uses this rate rule to pay an employee their outstanding units. The outstanding units are the employee's unused leave entitlement from previous years.

Important: The units (days or hours) used in the rate rule must match the Entitlement unit specified on the Annual Leave Tables | Setup tab. However, when the Entitlement unit is set to weeks the rate rule units used must be in hours.

The NZ Holidays Act requires that employees are paid outstanding leave at the greater of last year's average rate or this year's current standard rate.

Accrued unit payout rate/rule:

PayGlobal uses this rate or rule to pay out accrued annual leave. Accrued units are annual leave units that an employee is earning in their current year.

Important: The units (days or hours) used in the rate rule must match the Entitlement unit specified on the Annual Leave Tables | Setup tab. However, when the Entitlement unit is set to weeks the rate rule units used must be in hours.

The NZ Holidays Act requires that employees are paid accrued leave at the greater of last year's average rate or this year's current standard rate.

Parental Leave rate/rule:

This rate rule is a 52-week rolling average that PayGlobal uses to pay out annual leave within 12 months of the employee returning from parental leave. The employee is paid at a rate equivalent to their average weekly earnings for the 12 months before taking the annual leave. The annual leave rate does not have to be the employee's ordinary weekly pay rate. In this situation, the Parental Leave rate/rule overrides the Outstanding and Accrued unit payout rate/rules.

Further Reading: For more information, see Parental Leave (NZ).

Pay out all accrued rule:

This rule determines how PayGlobal calculates annual leave when you pay out all an employee's accrued units on termination. Always use Accrued Units for non-termination payouts.

• Accrued Units

Total units accrued up to paying the annual leave * Accrued unit payout rate/rule.

• Percentage Gross

  Gross qualifying earnings for the current year * Entitlement (percentage of gross)

Keep details on termination:

• Yes

  PayGlobal retains the employee's annual leave details after the employee is terminated.

• No

  PayGlobal clears the employee's annual leave details when the employee is terminated.

Use Reduce by value for AL qualifying hours:

• Yes

  Use this option only for annual leave tables that accrue in days.

  PayGlobal uses the Reduce by unit value to calculate the qualifying hours and FTE hours. Use this option when you want to use one unit type to pay out leave and another unit type to reduce the leave.

• No

  PayGlobal uses the Units to be paid value to calculate the qualifying hours and FTE hours.

  For annual leave accruing in weeks, this field should be set to No.

Convert AL qualifying hours using type of unit:

• Yes

  Use this option only for annual leave tables that accrue in days.

  PayGlobal uses the employee's average profiled hours or days to calculate the Hours worked and Qualifying hours values from the annual leave transaction pay quantity, which is a day value.

  Important: The employee must have profiled hours or days.

• No

  Default option.

Further reading

For more information about the Holidays Act 2003, refer to the following websites:

Holidays Act 2003 Analysis website

Department of Labour Holidays Act 2003 website

Department of Labour Parental Leave website

Holidays Act 1981 Analysis website

See also

Annual Leave Tables

Employees - Leave

Employees - Annual Leave