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Cash in Lieu of leave happens when an employee is paid the value of one, or more, day's pay instead of being away from work for that period of time. The annual leave balance is reduced by the number of leave days 'sold' and the value is added to the employee's payslip at the rate of the number of days x the daily rate of pay.

 

Cash in Lieu most often happens when:

•the employee has a larger leave balance and would like to receive the value of the leave paid out,

•when the employee's leave balance is close to the maximum leave balance allowed, so instead of losing the value of the leave a decision is made to pay it out, or

•the employer uses this method of paying out the value of leave during an annual shutdown.

 

Click this link for more information on how to create a Cash in Lieu of Leave Transaction Code

 

Click this link for more information on how to process Cash in Lieu of Leave (select the CILL Transaction Code rather than the Leave Code)

 

When checking the leave balance be aware that the accrual of the current period leave entitlement happens when the 'Calculation Routing' is run for the first time in a period.  This updates the leave balance so that it then includes the current period entitlement.