I have noticed on Employee pay slips, for pay weeks that straddle anniversary date ,the weekly annual leave accrual is less or a Proportion of the normal expected accrual (for us 2.92 hrs) . It returns to normal for the rest of the year. Can anyone help me explain this to employees ? I am confident the annual accrual is correct Thanks
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Annual Leave accruals around anniversary dates
Best answer by GrantC
I found this
At the anniversary of employment, there a number of things that occur.
- Accrued leave is rolled into Earned
- The Entitlement stops accruing ones it reaches its threshold of say 76 hours for personal leave
- If the anniversary falls mid way in the pay period, the accrual prorate splits between completing the leave to the threshold and what falls in to the new year.
What is noticed by employees on their payslips is that they may not get the full complement of the usual accrual. This could be due to number 2, or number three where they only see the 2nd portion of the entitlement reporting.
Number 3 is often hard to explain and it is a quirk of the software – that it only sees the latest entry for the entitlement.
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