Answer
An Alternative Holiday can usually be paid out only when the legal conditions are met, such as when 12 months have passed since it was earned and the employee and employer agree.
Lightning Payroll tracks Alternative Holiday as a day balance. If a payout is valid, enter the payment in the pay using the employer's chosen pay item or leave row, then add a dated manual adjustment to deduct the Alternative Holiday day so the ledger matches the payment.
On termination, unused Alternative Holidays should be reviewed in the termination workflow and paid in the final pay where required.
