Leave Adjustments

There may be occasions when leave will have to be adjusted, for example:

Example 1:

If annual leave was paid but it should have been sick leave taken.

To adjust the leave error you will need to follow these steps

  1. Create a New Pay Run  Creating a New Pay Run  OR make your adjustment in the next scheduled pay run

  2. Open the employee's pay run record by clicking on their name 

  3. Select the 'Action' button at the bottom right hand corner of the screen and then select 'Adjust leave':


  4. Adjust the Leave accordingly but remember, this is a leave 'adjustment' so a negative adjustment will 'take' leave (meaning reduce the leave balance), a positive adjustment will add to the leave balance. In the example shown below the intention is to change the leave taken from annual leave to sick leave so there's a positive adjustment to increase the annual leave balance and a negative adjustment to reduce sick leave.  


  5. Depending on the leave category settings, and if the Apply Earnings Rules box is ticked, the Leave Adjustment will create a line in the earnings of the employee indicating that annual leave has been adjusted. If you only need to add to or remove the leave balance but don't want to pay it out, ensure that you untick the 'apply earnings rule' box.
  6. You can leave a note in the 'Notes' section if you wish
  7. The pay run can now be finalised 

Example 2:

An employee returns to work early but the (whole) leave request has already been applied to the pay run.

Just use the same steps outlined above but add a positive adjustment to the appropriate leave category in the leave adjustment line, this will replenish the leave balance for leave not taken - notate why you are putting the leave back in the notes field but again, be careful about applying earnings rules, ie. only apply them if the employee would not normally have been paid for that time.

If you have any questions or feedback, please let us know via support@nzpayroll.co.nz

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