If an employee is leaving your employment, they are entitled to receive payment for any outstanding annual leave that they have accumulated and not taken. To add this payment to a payslip:
- Go to the Employee’s profile
- Click on Add (next to Payslip Inputs)
- Select Leave Paid Out under Income
- SimplePay will default to paying out the remaining annual leave balance using the rate calculated by the system (see explanation below). You can override both these values if you wish.
The system uses the normal annual leave rate to calculate the payment due. You can override this rate completely on this screen by checking Override calculated rate and entering the rate you would like the system to use. You should override the rate if this employee has additional benefits such as employer contributions to medical aid or retirement funds, as this is not taken into account by the system.
Please note: It is illegal under the Organisation of Working Time Act, 1997 for an employer to pay an allowance in lieu of the minimum statutory holiday entitlement of an employee unless the employment relationship is terminated.