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Tanda Payroll NZ: Paying out leave on termination

Learn how to process an employee's leave when their employment has ended.

Updated this week

Terminating the employee

To pay out leave upon termination, first ensure that an employment end date and cessation code have been entered in the employee profile.

Paying out final leave payments

When you add the employee's end date to their profile, you will see a + Process Final Pay Payments button in the Annual Leave Taken section.

When this is selected, Tanda will calculate the payment using the method that gives the employee the higher amount:

1. Average Weekly Pay - Based on their earnings over the past 12 months

2. Ordinary Weekly Pay - Based on their regular contracted pay

Clicking on the '?' icon in the weekly rate column will give you the breakdown of this calculation.

What gets paid out

The main entitlement that is paid out on termination is Annual Holidays. Any unused Annual Holidays balance will be included in the employee’s final pay calculation.

The following entitlements do not get paid out by default:

  • Sick leave

  • Bereavement leave

  • Alternative holidays (time in lieu)

  • Public holiday entitlements

If an employee has taken more leave than they’ve earned

If an employee has taken Annual Holidays in advance and their balance is negative, this will be flagged as a warning on the payslip, and the business can decide if this should be deducted from the payslip.

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