How do I adjust the annual leave balance when remaining days have become negative?

If an employee, for example due to a vacation quota, has used more annual leave than the remaining balance allows, a manual adjustment may be needed in the payroll run to transfer the over-withdrawal using pay codes. This is because a single day cannot be split between different balances. How the correction should be made depends somewhat on your collective agreement/rules.

Example:

Employee has a vacation quota of 1.25 as they work an average of 4 days per week.

There is only 1 day left in the balance for this year's paid days.

In December 2025, the employee has taken 1 work shift off and the annual leave deduction is being calculated in January’s payroll run using the quota 1.25. In the example’s annual leave agreement, the deduction is made, and allowance is paid with holiday pay (4.6%) and holiday increment (0.8%) per day taken out.

This results in this year’s paid days having an outgoing value of -0.25.

Alternative 1:

The annual leave withdrawal for the last day should only affect this year’s paid days. The employee is entitled to be off for the entire shift and receives holiday pay for the balance they have left.

Adjust the amount on the pay code for withdrawal of paid annual leave to 1.0 (Note: this also adjusts linked pay codes, such as annual leave deduction/holiday pay/holiday increment).

The vacation balance is adjusted and the outgoing value becomes 0.

Alternative 2:

The annual leave withdrawal for the last day should only affect this year’s paid days. The employee is entitled to be off for the entire shift and receives holiday pay for the whole shift.

Adjust the ingoing balance for paid holiday days in the employment register under the annual leave tab to 1.25.

Before change:

After change:

Alternative 3:

Excess annual leave withdrawal should affect the balance for remaining annual leave.

Adjust the amount on the pay code for withdrawal of paid annual leave to 1.0.

Add the pay code for withdrawal of remaining annual leave with the same transaction date and the amount 0.25.

Alternative 4:

Excess annual leave withdrawal should affect the balance for remaining annual leave. The balance for remaining annual leave is 0, and instead, leave of absence deduction is made for the over-withdrawal.

Adjust the amount on the pay code for withdrawal of paid annual leave to 1.0.

Add the pay code for over-withdrawal of annual leave with the same transaction date and 0.25 days.