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Step 3: Ensure agreements & policies are factored in

Regardless of why clients want to make changes (compliance or some other reason), we must encourage them to factor employee agreements and company policies into their analysis.

For leave types that must be managed in days, legislation will always win over employee agreements/policies except where an agreement/policy gives the employee more leave entitlement than the minimum required by law. If such agreements/policies are in place, clients will need to ensure that any additional leave entitlements described in these documents:

  • Are known to the payroll team.

  • Can be realistically managed in the desired units.

  • Can be managed separately from the minimum entitlements required by law.

  • Are fair to employees.

To better explain the nuances to clients, it may help to walk them through some scenarios. It can also help to prepare them for the possibility that even the most well-meaning requests and changes might actually result in non-compliance.