With this option, you are using the employee’s standard Annual Leave category to manage their entitlement.
In the example below, this category is named ‘Annual Leave (Accrued)’.
For this method, you would assign two leave categories to the employee:
|Leave Category||Accrual Method||Additional Actions|
|Holiday Pay||% of Gross Earnings|
|Annual Leave (Accrued/Entitled)||NZ Annual Lump Sum||Clears Holiday Pay on accrual|
The employee’s Annual Leave (Accrued) balance would accrue after 12 months of continuous service, and the Holiday Pay will automatically reset to 0 when this happens.
When an employee requests leave, they will be taking it from the Annual Leave (Accrued) balance.
If this is in advance of their accrual, you will be allowing the employee to go into a negative balance. You can control the limits for negative leave allowed by setting a Negative Threshold on the leave category.
When this method is used, the system will not look at an employee’s Holiday Pay accrual to manage the amount of negative leave that they can take.