This article will explain each line of the Leave Liability Table. This will help you to interpret the leave data correctly for each employee and help you make informed decisions on leave-related requests such as leave in advance.
Updated: June 2023
In this article
What is Leave Liability?
Leave liability is the dollar value of all the types of leave the employee has earned that is owed them in a final pay. Unless otherwise stated in the employment agreement, sick leave does not form part of leave liability.
Reading the Leave Liability Table
This is an example of a leave liability table. Click on the orange explore button to find out more about the field.
For an example of what the leave liability table looks like for each employment type, follow this link.
Key Takeaways:
- If the TOTAL annual leave liability amount is NEGATIVE, you have paid for leave the employee has not earned yet and will be out of pocket if the employee leaves today.
- If the TOTAL annual leave liability amount does not cover the costs of the leave in advance requested, it is not advisable to grant the full amount of leave in advance at this stage as you will be out of pocket if the employee doesn't return after their period of leave.
Accessing Leave Liability Reports
There are two ways to access an employee's leave liability:
- from the timesheet, and
- from creating employee reports.
Accessing Leave Liability from the Timesheet:
The example provided in the walkthrough above is what the leave liability looks like when accessed from the timesheet. This is a quick and convenient way of checking up on the status of employee leave.
To see this, simply scroll down the page of the timesheet. The table is at the bottom of the timesheet page.
Accessing Leave Liability by creating Employee Reports:
Creating an employee report will provide you with a summary of all leave for the financial year, as well as an individual summary of leave for each employee.
Follow this link to find out how to run and interpret this report.
Further Resources
- You can learn more about leave and which type is right for your employee by checking the Employment New Zealand website or contacting them on 0800 20 90 20.
- To view a video walkthrough on how to check an employee's leave balance using the Annual Leave Liability table, follow this link to our YouTube channel.
Did you know we have a video explaining how allocated leave and leave accrual work? View the video on Understanding Annual Leave here.