Closedown Periods for Existing Employees

Setting the Company Anniversary Date will not update existing employees who started prior to this change.

For existing employees without an entitlement balance as at the nominated closedown date, there are some extra steps to be aware of. How these employees should be treated depends on whether they have previously rolled with an entitlement anniversary.

Existing employees with no entitlement balance

For employees who started prior to setting the company anniversary date, you will need to manually update their annual leave anniversary date before you apply the S34 Closedown Payment to them.

If they haven’t yet rolled

If the employee started prior to the company anniversary date being set up, but they haven’t rolled with an annual leave entitlement yet (i.e. accrual only), shifting their anniversary date is simple.

Example

The following employee started on 1 Aug 2020. The nominated company anniversary date is the 1st December each year.

On the Employee Tab > Rule Templates screen, click on the existing date and update the Start Date field to the company anniversary date e.g. shift their anniversary date back to 1/Dec/2019.

Their annual leave now rolls on 1 Dec, and the S34 Closedown Payment can be applied.

If they’ve already rolled

Extra care needs to be taken for employees that have previously rolled with an entitlement anniversary before (i.e. there’s an existing Current row). In addition to shifting their anniversary date, you will need to manually adjust their entitlement and calculate the value of the S34 Closedown Payment.

This process involves a couple of calculations. Custom report CUSTOM20868 will assist here by providing the values for ‘YTD accrual from previous period’ and ‘YTD Holiday Qualifying Earnings from previous period’. If you do not have access to this report, please contact the Support Team to request access.

Example

Adjusting entitlement balance

The following employee started on 19 Sep 2019, and they previously received their annual leave entitlement on their anniversary 19 Sep 2020. However, at the time of the closedown (1 Dec 2020), they have used all of their entitlement (see leave summary below).

When you shift the anniversary date for them, the employee will end up rolling with too much entitlement (e.g. 191.99 instead of 31.99). This is because the previous accrual (160 hours) has been included again.

You will need to manually calculate the correct accrual they should roll with and add this to their existing entitlement. Then override the current total entitlement with this value in the leave summary screen.