Payroll

How is long term sick leave over two holiday years handled?

Sick leave qualifies for holiday accruing pay for up to 180 calendar days per holiday year. When you register sick leave using the Sick leave shourtcut, the correct pay codes are added automatically and the days are counted. The 180 days are counted from the day the employee became ill, not from the start of each holiday year. The counter therefore isn’t reset automatically when a new holiday year begins.

If the sick leave continues into a new holiday year, you’ll need to add the relevant pay codes for the days that qualify for holiday accruing pay manually in the pay run.

Example 1 – sick leave starts in September

In this example, the holiday year starts on 1 April. The employee becomes ill on 1 September.

Period	Holiday accruing	Action
1 September–27 February (180 days)	Yes	You don’t need to do anything. It’s handled automatically when you register the sick leave using the shortcut.
28 February–31 March	No	You don’t need to do anything. Pay codes for sick leave that doesn’t qualify for holiday accruing pay are selected automatically.
1 April and the following 180 days (new holiday year)	Yes	Add the pay codes manually in the pay run. Salaried employees, day 15-90: 3114 - Sick deduction day 15-90, salaried employees Salaried employees, day 91-180: 3136 - Sick deduction per day 100% day 91-180, salaried employees Hourly employees, day 15-180: 3177 - Sick day 15-180, hourly employees
Thereafter	No	Switch to pay codes for sick leave that doesn’t qualify for holiday accruing pay. Salaried employees: 3146 - Sick deduction >180 calendar days, salaried employees Hourly employees: 3183 - Sick >180 calendar days, hourly employees

Example 2 – sick leave starts in February

In this example, the holiday year starts on 1 April and the employee becomes ill on 1 February.

The shourtcut counts 180 days from 1 February, which means the days run out on 30 July. The new holiday year starts on 1 April and gives the employee 180 new days that qualify for holiday accruing pay, but the shortcut doesn’t detect this automatically.

The days between 31 July and 27 September therefore qualify for holiday accruing pay in the new holiday year and need to be handled manually.

Period	Holiday accruing	Action
1 February–30 July (180 days)	Yes	You don’t need to do anything. It’s handled automatically when you register the sick leave using the shortcut.
31 July–27 September	Yes	Add the pay codes manually in the pay run. Salaried employees, day 15-90: 3114 - Sick deduction day 15-90, salaried employees Salaried employees, day 91-180: 3136 - Sick deduction per day 100% day 91-180, salaried employees Hourly employees, day 15-180: 3177 - Sick day 15-180, hourly employees
From 28 September	No	Switch to pay codes for sick leave that doesn’t qualify for holiday accruing pay. Salaried employees: 3146 - Sick deduction >180 calendar days, salaried employees Hourly employees: 3183 - Sick >180 calendar days, hourly employees

Period

Holiday accruing

Action

1 February–30 July (180 days)

Yes

You don’t need to do anything. It’s handled automatically when you register the sick leave using the shortcut.

31 July–27 September

Yes

Add the pay codes manually in the pay run.

Salaried employees, day 15-90: 3114 - Sick deduction day 15-90, salaried employees
Salaried employees, day 91-180: 3136 - Sick deduction per day 100% day 91-180, salaried employees
Hourly employees, day 15-180: 3177 - Sick day 15-180, hourly employees

From 28 September

Switch to pay codes for sick leave that doesn’t qualify for holiday accruing pay.