Q: I have a question on the effect of Parental Leave on accrued Annual Leave taken after returning from PL.

My understanding has been that the AWE calculation is only for Annual Leave that becomes entitled whilst on Parental Leave or 12 months following their return. Accrued Annual Leave should be paid at the higher of AWE and OWP as it isn’t entitled yet.

Is this correct? Our current payroll provider don’t do this, they apply AWE for all leave taken. So I am wanting to check my thinking.

A: Yes, only entitlement earned while on parental leave or on return can use AWE.  When you state accrued annual leave that is only 8% under the act.  Do you mean if the employee was provided annual holidays leave in advance?  If the employee requested annual holidays in advance and the employee agreed then under section 22 both AWE and OWP is used and the annual leave provided becomes a negative in the entitlement field.