Payout of Termination Alternative Leave Entitlement to be Based on Employee’s Final Day

As per Section 60(2)(b)(i) of the Holidays Act 2003, any alternative leave not taken by the employee that is paid out as part of their termination pay needs to be paid based on their last day of service.

The platform will now look at timesheets submitted for the final day and pay for the same number of hours as the timesheet processed for the final day. The platform will also apply any timesheets submitted as an exception for an auto-paid employee.

Suppose an employee on an advanced work pattern had the hours changed for that final day. In this case, the platform will use the update to determine the number of hours paid for that day and apply it to the Alternative Leave payment in the termination.

For more information: How do I terminate an employee?

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