Q: We have an employee who is taking a Secondment with our UK Office for a period of 2 years. He will be paid via the UK office, accruing leave, etc under a new contract within that Business Unit.

What do I need to do from a payroll perspective in regard to his current Outstanding Leave Balances. Are they allowed to be paid out or does it sit there until he returns in 2 years. He won’t be accruing leave here during the 2 years.

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A: If it is not going to be a termination, then the leave cannot be paid out.  They could cash out one week in the 12 months for their current entitlement.

Or do a termination and have a letter that states that on their return after 2 years, a position will be available (this is cleaner and still has the employee coming back).