Taking Annual Leave during a Closedown Period

If an employee is taking annual leave during a closedown period, there may be some extra steps you need to take depending on when the annual leave is taken.

If Annual leave is taken prior to the anniversary date

The S34 Closedown Payment will be reduced by the leave taken payment.

If Annual leave is taken after the anniversary date

The S34 Closedown Payment will not be reduced by the leave taken payment. Instead, the leave is taken from the accrual after the anniversary date in the following year.

Note that the S34 Closedown Payment will be slightly under what you might expect due to the way the other earnings are split between this year, and the following year.

In the example above, the employee’s leave summary screen will look like this at the end of the period:

If Annual leave spans the anniversary date

If the employee takes a period of leave that spans the anniversary date, you will need to determine which part of the leave should be taken before and after the anniversary date. You will get a LEAVE SPANNING CLOSEDOWN warning to remind you to split the leave in the pay packet into two.

In the example below, the employee has requested leave between 24 Nov 2020 to 7 Dec 2020 which is over the entitlement anniversary on 1 Dec 2021. To resolve this, you will need to amend the Leave Taken component and split the period of leave taken between the period before and the period after the anniversary date.