Summary

When an employee changes status from permanent to casual, their leave accrual ends because their leave entitlement is usually incorporated in their casual employee wages.

Organisations usually follow a specific process when an employee changes status, so the following procedure is only a guide.

Important: If you want to change an employee’s status, then you should not continue using the same employee record. We recommend that you model the employee's current record and set them up as a new casual employee. You will retain details of their original employment as well as their current employment, and all their new financial fields will start from zero.

Basic procedure

1. Ensure you have all necessary documentation relating to the status change.
2. Use a manual pay to pay out all annual leave, leave credits or long service leave owed to the employee.
3. Before you change the employee’s status and annual leave tables, you must ensure that the current values on their Annual Leave tab are all zero. These values include Total accrued/pro-rata, Total accrued/pro-rata taken, Gross qualifying ($), Gross earnings accrued/pro-rata ($), and Gross accrued/pro-rata paid as they affect annual leave liability and nett liability. If you do not ‘zero’ these values, then after you change the employee’s status, PayGlobal will create negative annual leave transactions for the employee in subsequent pays.
4. On the employee's Contract tab, change the Employee status field to 'Casual'.
5. On the employee's Leave tab, change their Annual Leave value to a casual table (if required).
6. On the employee's Payments tab:
   • Change their profiled hours fields to "0.00".
   • Change Auto-pay to 'No' so payments are not automatically generated for the employee when you open a standard pay.
7. Delete any timebands for the employee.
8. Update other details as required, such as pay rate or department.