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Leave Overview: Types of Leave

Overview of leave types

Leave Overview : Types of Leave

Employees are entitled to 'annual holidays' or 'holiday pay' depending on their employment contract offered at the time of employment. Employees must be paid the right amount at the right time for holidays and leave accrued or taken. If you are unsure of your obligation as an employer, please refer to Employment New Zealand for further assistance.

Leave balances will show on an employee's payslip as long as you have select Yes in the Show balances in payslips? the section in the employee profile/leave tab

You can see an employee's leave balances by clicking the timesheets button in the top menu-bar while you are on an employee's profile page. This will take you to the timesheet entry and reporting page for the employee. Scroll down to the Annual leave liability box to view the leave balance for this employee.  If you have a Pay loaded on the Dashboard you will need to scroll to the bottom of the timesheet to see all employee's names. Select the employee you would like to check the balance for and scroll down to the Annual leave liability box.

Reading and interpreting the leave liability

Rate as per the Holiday Act" leave method

Reading the leave liability table in your employees timesheet:


  1. The "days allocated annual leave" balance. Days are allocated on each leave anniversary date. If an employee has taken leave in advance this number will be negative. A negative number does not mean the employee owes you leave. 
  2. The "8% of gross since the most recent leave anniversary" figure indicates how much leave has accrued since the most recent leave anniversary.  The daily rate can be divided into this figure to convert to a day count.  The day count will show on the employee's payslip as "days available to taken in advance (at the employers discretion)". Included in this 8% is 8% of the value of the allocated days annual leave. 
  3. The "dollar value of any leave taken in advance".  This only has a value if an employee has taken leave in advance, and will be the dollar value of those days. 
  4. The balance of "days alternative leave owing" are Lieu Days that have been added to the timesheet for working a Public Holiday. 
  5. The balance of "sick leave available" days. The number of sick leave days available, this has no effect on the total leave liability.
  6. "Total leave liability" is equal to the value of any allocated days annual leave + an 8% of gross wages since the most recent leave anniversary - the dollar value of leave taken in advance (if applicable) + the estimated dollar value of any alternative leave. This is what an employee will get in their final pay.
Using "a % of gross earnings (temp or irregular scenario)" leave method

If the "accumulate and pay later" option has been selected in Employee Profile/leave tab you will see a value showing in the "holiday pay owing" row when viewing the annual leave liability table. This will be 8% of gross earnings minus any holiday pay that has previously been paid.

This can be paid in a timesheet using the "holiday pay" pay type.  We suggest entering the daily rate in each day the holiday is recorded for instead of adding a lump sum amount.