Employees are entitled to be paid when on annual, sick and compassionate leave in accordance with the rules discussed in the following section:
Salaried employees’ leave pay is included in their salary as the amount is fixed, irrespective of actual hours worked. Hourly-paid workers only receive income for actual hours worked, so they must be paid extra when they take paid leave – this leave pay is based on the employee’s ordinary hourly rate e.g. one day’s annual leave should be paid at the same rate as one regular day of work.
The BCEA states that, for employees earning overtime, commission and other variable types of income, such extra income must be taken into account when they go on annual leave. This is paid over and above what they would normally receive. SimplePay calculates this automatically using the employee’s fluctuating leave rate – for more information on this rate and disabling this calculation, please see the Payroll Concepts FAQ section.