Changing an employee from casual to permanent
Changing an employee from casual or temporary contract to permanent
If you have a casual employee who has started working for you permanently, or had a change of contract, you may need to change their leave settings in Thankyou Payroll.
There are two scenarios:
If they were set on 8% of gross being paid into each pay, or included in existing pay rate (don't pay) then they should have no leave liability. This means you can change them over to "rate set as per the holidays act" without any difficulties.
You need to make sure to set their leave anniversary and date of most recent addition of leave to the start of their new contract/working situation. If you don't you'll end up double paying the 8% already paid into each pay.
Note: An employee's sick leave will always be linked to their start date in their basic details. If this is meant to change you will have to create a new profile.
For example below is a screen shot of the leave method set as "included in existing pay rates (don't pay)". If I have to change that to the "rate set as per the holidays act", I will change the anniversary date to the new start date of that contracted agreement.
Below is an example of the date changed from 12-03-2018 to 01-01-2020 to a new leave method as per the new agreement.
If they were set on 8% of gross being accumulated to pay later then you may need to pay out their holiday pay before changing their settings. This is dependent on the agreement you have in place with your employee. You must determine if their new leave settings should be applied from their original start date or not.
If holiday pay has been paid, but should have been recorded as annual leave due to an error in employee set up you will need to set up a correction pay.
In most cases involving changing an employee's leave settings you will need to contact us to make sure the new settings apply from the correct date. Below is an example a pop-up that will appear when you try to change the leave method. Please call us if you are unsure of the change.