For businesses that have an annual close down period the employer can require the duration of the close down to be taken as Annual Leave. Depending on the current leave entitlements of each employee there are a few different scenarios and ways to handle a close down with PayHero.
For additional guidelines on processing close down periods, see MBIE’s website here: Annual Closedowns.
Annual Leave Due & Annual Leave Taken in Advance
If the employee has enough Annual Leave Due or the employer is happy for annual leave to be taken in advance, the close down can be processed through one annual leave request.
Enter an annual leave request for each employee through PayHero’s Leave calendar with the start & end dates covering the close down period.
If the employee has been employed for more than 12 months, doesn’t have any annual leave due at the beginning of the close down and the employer doesn’t want annual leave to be taken in advance, unpaid leave could be used instead.
Enter an Unpaid Leave request into the leave calendar covering the required duration of the close down period. See our support article here: Unpaid Leave to ensure the unpaid leave processes as expected.
First 12 Months of Employment
If the employee hasn’t been employed by the company for 12 months, they won’t yet have any ‘Current Leave Due’. In cases like these, if annual leave can’t be taken in advance, a close down period date can be nominated instead. This will pay the employee out their 'Holiday Pay Due' balance and set their next employment anniversary to the designated date to ensure the employee will become entitled to annual leave prior to each subsequent close down.
Process the pay leading up to the close down as per normal and from the draft stage, select the employee you want to nominate a close down date for.
Select the 'Set Close Down' option through the menu. (Please Note: This option will only be available for employees with a start date in the last 12 months).
In the pop-up menu, designate a Close Down Date and select 'Set Close Down'. This will pay the employee any outstanding Holiday Pay and move their 'Next Anniversary' to 12 months after the close down date.
Public Holidays over a Close Down
Often close down periods occur over the Christmas & New Years Period where there are a number of Public Holidays. If a public holiday falls within the close down period, the employee is still entitled to payment for the public holiday if the day would have been an Otherwise Working Day. PayHero will apply the usual automated public holiday rules as covered in out support article here: Public Holidays. This will automatically reduce any leave requests by the number of days public holidays that it covers, however, always ensure you double check the following pay runs to include these process as expected.