Skip to content

Cashing up leave

Cashing up is where an employee is paid for annual holidays or alternative holidays without taking the time off work. It's sometimes called cashing incashing out or selling leave.

If an employee is simply taking paid leave, learn how to pay it. If the employee is leaving your business and has unpaid leave, find out how to process their final pay.

Check the rules!

There are regulations relating to the cashing up of leave, so start by checking the rules at employment.govt.nz

Cashing up annual leave

To cash up annual leave in MYOB, you'll need to create a new earning for the employee and use it to make the payment. We'll also ensure the employee's leave balance is reduced by the number of hours they're cashing up.

Cashing up alternative holidays

If an employee doesn’t take an alternative holiday within 12 months of becoming entitled to it, the employee and employer may agree for the alternative holiday to be paid out. The payment amount must be agreed by the employer and employee and must be made as soon as practicable once the agreement has been made.

Use the Leave transaction report to confirm when alternative holidays were accrued (Reporting menu > Reports > Payroll tab > Leave transaction).