Annual Leave Cash Up

As per Section 28A of the Holidays Act 2003 (Amendment Act 2010) there is a provision to provide employees with up to one week of current entitlement annual leave cash up. This needs to meet the criteria of the Act, and as an employer you will need to review this legislation prior to paying the employee to ensure that this is compliant.

To check that the employee has sufficient leave, navigate to the Employee Tab > Leave Type > Annual Leave.

The leave will be visible under the prior entitlement years or the Current Line. Please note that Accrued leave is not eligible to be cashed up.

To process the leave cash up, from the Pay Run view open the pay packet of the relevant employee. Click on the 'Add Component' button at the bottom of the employee packet. Then, Select 'Leave Taken' from the Component category and the 'Annual Leave Cash Up – S28A Holidays Act as the Component. Select the start and end dates equivalent to one week. It is important to change the dates from default values, otherwise a full period will be processed for the cashed up leave payment in the pay packet. Once complete, click the 'Add' button.

Once you click on the 'Add' button, you will find two 'Annual Leave Cash Up – S28A Holidays Act' components have been added. Once the changes have been saved, the dollar value and hours of proposed leave will be processed through the pay packet which will be visiable in the packet under one of the 'Annual Leave Cash Up – S28A Holidays Act' components.

The relevant number of hours will be deducted from the employee's leave entitlement. This will be visible in the 'Leave Summary' screen.