Q: I have an employee who agreed to a change in anniversary date for a leave without pay period. Leave without pay period of 2-3 months in Aug/Sept/Oct 22, and then another few weeks Dec/Jan23. His current anniv is April 23 and he is being moved to July 23. This is all fine for accrual and he works longer to receive his next 4 weeks.
I am mindful that should he leave prior to July 23 then he’ll receive 8% on gross earnings, but because his anniv date has been changed he’ll only receive 8% from July 22 to last day of work not back to his last entitlement anniversary of April 22? Is that correct?, should the earnings from April 22 to July 22 be factored in? he hasn’t actually earned any entitlement from this period yet and due to the system would only receive 8% from July 22 which didn’t seem correct.
A: As it was agreed and the ANN has been moved because a period of unpaid leave then yes the 8% is from the agreed new ANN date. The act does not take into account this situation so the act needs to be applied based on what the act states happens at the time of termination.
The employee got what they wanted (leave without pay) so this is a consequence of that decision.