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Community > AU Payroll >

AU Payroll - Using hours worked to credit negative annual leave balance

Started by Anita Riley (Practice Manager) -   in AU Payroll

I have an employee who has a negative Annual Leave Balance.
She has worked some extra hours in the last pay period.
Can she not be paid for these extra hours but use them to "pay off" her negative balance of annual leave?
Hope I have explained that clearly enough!

Hi Anita,

This is something you should contact Fair Work about because it relates to legal issues. Just my own take on it: from what I know, I would not expect that you'd be allowed to do this. If your employee is normally entitled to be paid for additional hours, then they must be paid and you can only make deductions from their pay that they agree to and which are in the employee's interests. If you allowed your employee to go into negative leave, I doubt that you could then go and deduct pay for it, as this would probably be seen as being in your interests and not hers. As I said, though, you should seek advice from Fair Work Australia and I would be interested to know what the answer is.

Zosia Romanowski