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Leave requests

How to Manage Leave Requests & Holiday Pay: Part Two

Published on
January 31, 2024
leave requests and holiday pay 2
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In the previous blog, we outlined how to set up holiday pay and manage leave requests. Here, we’ll delve into more detail around payment tracking, communicating leave requests and defining rosters.

Tracking Holiday Pay Accurately

Here are the key considerations for accurate pay tracking:

Define Holiday Pay Policies

This one is for payroll. You’ll need to outline which holidays are eligible for additional compensation and define the calculation method for determining the rates. Ensure these policies align with legal requirements and communicate them effectively to employees.

Automate Payroll Systems

An efficient system will need to utilise payroll software or integrate HR systems that automate the calculation and tracking of holiday pay. These systems can accurately calculate the pay based on predetermined rates or formulas, reducing the risk of errors and ensuring consistent and compliant compensation.

Accurate Timekeeping

Ideally, your organisation should be looking to implement robust timekeeping systems to track employee attendance and hours worked accurately. This includes recording absences, leaves, and holidays. Ensure employees are properly clocked in and out and that their time records are up-to-date and reflect any holiday hours.

Regular Audits and Reviews

Any payroll manager worth their salt will know about conducting periodic audits of payroll records and processes to verify the accuracy of holiday pay calculations. This includes checking employee time records, leave requests, and payroll reports to identify and rectify any discrepancies promptly.

Documentation and Record-Keeping

Maintaining thorough documentation and including the basis for determining rates and any relevant supporting documentation is key to keeping an accurate payment schedule. This includes the retention of accurate employee time records, leave requests, and holiday pay transactions.

Stay Informed and Seek Expertise

It’s advisable to stay informed about updates and changes to labour laws. Consider consulting with HR professionals or legal experts to ensure compliance and address any specific complexities or unique situations in your organisation.

Communicating Leave Policies to Employees

Effectively communicating leave policies is vital for clarity and transparency, which come into play later in external payroll auditing. Establishing a comprehensive leave policy that includes guidelines for holiday leave and pay entitlements, therefore, helps employees understand their rights.

By clearly outlining the process for requesting holiday leave, required notice periods, and any documentation needed, employees can navigate what they need to know about their leave entitlement with ease. Regularly communicating updates or changes to the leave policy ensures employees stay informed about holiday pay entitlements and any policy revisions.

Integrating leave requests and employee rosters

Integrating leave request forms with employee rostering allows for;

  1. Roster managers to see what shifts employees will be absent for ahead of time
  1. Calculated sick leave, figuring what the employee would have earned if they had worked. This is essential for leave types, like NZ sick leave, where the allotment of leave depends on the employee roster.  
  1. Pre-populated employee timesheets, with leave entered that has been arranged in advance to minimise the changes users have to make on their timesheet.

By integrating timesheets, leave, and payroll, organisations can achieve accuracy, efficiency, compliance, and improved employee engagement. Selecting compatible systems and configuring them appropriately is crucial for successful integration.


Integrating timesheets with leave and payroll processes brings efficiency, accuracy, and compliance to organisational administration. By consolidating employee data, automating payroll calculations, and streamlining leave management, organisations can save time, reduce errors, and ensure adherence to labour regulations.

To do all that, especially integrating leave requests with timesheet tracking in a way that organises and understands payment conditions, requires specialist software; aka something like TimeFiler. The integration enables real-time updates between administration and employees, integrating with payroll to ensure that all payment calculations are correct. So, the next time someone enters an incorrect leave request, the system can spot the mistake before it’s even submitted, bringing the error to everyone’s attention.

Overall, the integration of timesheets with leave and payroll enhances administrative efficiency, improves accuracy, and promotes a seamless workflow for effective workforce management.

If you have any further questions or want to know more about what TimeFiler is capable of within leave request management and holiday pay, feel free to reach out.