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Cashing Up Annual Leave

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Cashing Up Annual Leave

Overview

As per the Holidays Act 2003, employees can ask their employer to pay out up to one of their four weeks of minimum annual leave entitlement per year. This request can be done once to pay out a complete week or in installments throughout the year.

Client Responsibilities

The client will need to advise Datacom when any employee requires annual leave Cash-up. We recommend the client to first check the employee is eligible for annual leave cash up. This is done by checking the employees annual leave entitlements (not accrual) to ensure they have not already cashed up their eligible one-week entitlement for the year.
If the client is unable to do this or does not have access to the system to check, please ask your consultant to verify the employee is eligible to cash up the specified leave.
Request can be sent by:

  • Direct Access: This instruction will be entered through Admin Direct Access, Employee Modification screen.
  • Excel: A single Excel spreadsheet summarising all employee changes may be submitted for the payroll period.

Annual leave cash up will not be included in Gross Earnings as per the Holidays Act.

EasiPay Responsibilities

Datacom will then process the annual leave Cash up payment as requested by the client.

  • Datacom will use the generic annual leave cash up code, unless otherwise specified.
  • If the client is unable to verify an employee's eligibility – Datacom will check and see if the employee is eligible to cash up annual leave ie no more than one week every 12 months can be cashed up or if the amount will put them over the one week entitlement.

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