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Processing a final pay

When an employee's employment ends, you must pay them the value of all of their available annual leave and alternative holiday entitlements, as well as the calculated value of their accrued (but not yet available) annual leave. There's a handy final pay calculator in MYOB that steps you through the process to ensure the correct leave is paid.

For more details on your final pay obligations, visit the Employment New Zealand website.

Public holidays

Employees may be entitled to be paid public holidays that fall after their employment ends, if they have unused annual holidays owed.

Leave in advance

If the employee who's leaving has taken leave in advance, they'll have a negative leave balance. This means:

  • The total amount paid to an employee for taking leave in advance will be deducted from the Total Holiday pay 8% (final pay).

  • If the total amount paid to the employee for taking leave in advance is more than the final holiday pay amount, then the Holiday pay 8% (final pay) will be $0.00.

  • If you want the employee to repay this overpayment:

    • you'll need a written agreement with the employee to have this overpayment repaid

    • you'll need to create a before tax deduction and manually add the repayment amount against this deduction in the employee's pay.

If the employee's anniversary date falls within their final pay period, see the FAQs below about how to handle this.