HR - Changing temporary staff status to permanent.

A permanent employee has not been getting the accrual leave hours. This is because her Employee group was still set as Temporary though she was confirmed permanent staff in October of 2006. I think this has affected her leave accruals(Annual Leave) because the system is currently calculating on 10 days per year which is the accrual rate for temporary staff.
How do I resolve this issue i.e. to change her employee group to be effective from October 2006?
Will the system automatically calculate the correct balances up to today?

You would have to change her Organization Assignment with effect from oct 2006 via Personnel Actions.
The payroll will be re-tro from this period ( assuming the your payroll schema allows it ) for this employee...

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