Q: As I remember in the training from previous years, you mentioned that the annual leave taken needs to be paid at the rate of when the leave was taken.
For example, employee took annual leave in April. However, payroll does not receive this until July. So when we process this annual leave, do we use the higher rate at the time of April or we just use the higher rate in July as the system applies automatically with current higher rate?
A: Well to start with this action is totally non-compliant with the requirements of the Holidays Act as holiday pay must be paid in the pay period it is taken.
To meet the requirements of the act but this is still totally wrong it should be calculated at the rate it would have been paid at it paid in the pay period when taken. Really the issue should be sorted and this should not be a standard practice for payroll to undertake