An employee could give notice that they will not be returning to work after their parental leave period. Here is how to set their Final Pay in our system.
Updated: November 2024
In this article:
Follow these links to find out more about:
- Setting up Payroll for Parental Leave
- Managing Payroll while the Employee Is On Parental Leave
- Managing Payroll for the Employee Returning from Parental Leave
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Notice: Your employee should inform you of their intention of not returning to work:
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When the employee does not return to work at the end of their parental leave period, you need to set a Final Pay for them. Although this is a usual Final Pay, the extended period of unpaid parental leave has some unique situations that could create uncertainty. No worries, we're here to make things as clear as possible.
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Termination Date: If your employee does not return to work after parental leave, the first day of parental leave becomes their termination date. |
*Any KIT Hours or sporadic returns to work after this date fall outside this Final Pay calculations as it is after the termination date.
Leave Balances
Include the employee's annual leave balance and leave accrual up to the termination date in the employee's final pay.
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Any annual leave entitlement allocated or accrued after that date is lost
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Base any alternative leave owing on the rate of the last day of employment, which is their parental leave start date.
- If the employee has a positive allocated leave balance and a public holiday falls within that extended time, include payment for that public holiday in the final pay as with any other final pay scenario.
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For example: The employee (work pattern: Mon-Fri) went on parental leave on Friday 21 April, with a positive allocated leave balance of 3 days. They do not return after parental leave, so this date becomes their termination date. The 3 days of positive allocated leave extends forward to the 26th April. ANZAC day falls on the 25th, so payment for ANZAC day must be included in the final pay. |
What about KIT Hours or Sporadic Return-To-Work Periods?
Any KIT hours or periods of return-to-work pay do not form part of the 8% of gross earnings calculation on termination as this falls after the termination date.