Payroll - The difference between outstanding and accrued leave.
February 15, 2018
Annual leave has two important elements. The entitlement and the payment to the entitlement.
An employee is entitled to annual leave on their entitlement date. Until that time an employee is simply accruing leave. Think of accrued leave as a deposit in a time bank that becomes due on the entitlement date.
If an employee terminates their employment prior to completion of 12 months they will simply receive 8% of gross earnings.
Gross earnings are defined in the Holidays Act.
Let's look at what the means next time...
Annual leave is paid at the higher if an employees average weekly earnings versus the ordinary weekly pay.