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Changing an employee from casual to permanent

Changing an employee from casual or temporary contract to permanent

If you have a casual employee who has started working for you permanently, or had a change of contract, you may need to change their leave settings in Thankyou Payroll.

Change from 'Holiday Pay pay-as-you-go'

If your employee was set on 8% of gross being paid into each pay, or included in existing pay rates (don't pay) then they should have no leave liability. This means you can change them over to the rate set as per the holidays act easily.

You need to make sure to set their leave anniversary and date of most recent addition of leave to the start of their new contract/working situation. If you don't you'll end up double paying the 8% already paid into each pay. 

An employee's sick leave will always be linked to their start date in their basic details. If this is meant to change you will have to create a new profile.

For example, an employee was set to get a percentage of gross earnings(temporary or irregular scenario) with leave as 8% paid into each pay. Their original start date was 21-06-2019 and the date of starting to accrue annual leave(new contract/agreement) is 11-01-2020. To change to these settings go to their leave tab and select the rate as set per the holidays act method. Make sure you check the number of weeks per year (minimum of 4) and the length of a standard/ordinary week.


Set the leave anniversary and date of most recent addition of leave to the new agreement date, in this example 11-01-2020. Leave their sick leave anniversary as it is.


If the start of the new agreement is in a currently active timesheet you may see an allocation of annual leave days in the employee's leave liability table. This will clear after the timesheet has processed.


Change from 'Holiday Pay accrued'

If they were set on 8% of gross being accumulated to pay later then you may need to pay out their holiday pay before changing their settings. This is dependent on the agreement you have in place with your employee. You must determine if their new leave settings should be applied from their original start date or not. If you are unsure of this, please contact Employment NZ for assistance or get some legal advice.

If holiday pay has been paid, but should have been recorded as annual leave due to an error in employee set up you will need to set up a correction pay and email us to help you process that.

In most cases involving changing an employee's leave settings you will need to contact us to make sure the new settings apply from the correct date. Below is an example of the pop-up that will appear when you try to change the leave method. Please call us if you are unsure of the change.