From Permanent to Casual

Mario_10117674
Mario_10117674 Member Posts: 3
edited May 2020 in Accounts Hosted
One of our employees wants to go from Permanent to Casual. He has holiday and personal leaves accrued. Would you know how should I process his last payment and pay accrued leaves before I'll change him to casual in Reckon Hosted?  Would it be a mistake if I'll use all his available accrued hours in the last pay and will bring them to zero? Or should I create an Unused leave account and pay it out separately? Thank you in advance

Comments

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Mario

    Both, I would create a new accrued leave on termination payroll item and link it to the holiday leave account.  then pay it out all in one final pay.

    I would get this all in a written agreement that he is voluntarily going from permanent to casual.

    this leaves the question of Sick leave, technically he is still owed sick/personal leave as he is still employed by you and not actually leaving, and he didn't get paid the previously as he wasn't getting the 25% cas. loading.  For the sake of covering yourself I would leave the Personal leave accrual on his record, then if he does have a period of time off he would then have his leave available. 

    If he leaves and doesn't use it then it is forfeited.  If he wants to work less days a week have you concidered PPT and adj the leave accrual accordingly.
  • Mario_10117674
    Mario_10117674 Member Posts: 3
    edited July 2019
    Thank you very much. The employee just started and had one day off due to illness so I paid him out his sick leave and did a Holiday Leave Pay Out as well. All good, sorted. He is related to the owner so they have their own agreement. ?
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited July 2019
    Ok, you made it sound there was a lot more involved than 'just started' and related to boss.

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited July 2019
    Kevin,

    I didn't say payout sick leave, I said leave it on his file, believing this employee had been there a while.  The personal leave was accrued instead of being paid 25% cas. loading.  If the employee is moving to casual but not being terminated the leave should stay.

    This exact senario caused me to lodge a FWC against a new owner of a business who wanted to terminate a 25year employee and make them casual, they would have lost over 300hrs accrued personal leave.