Working less hours on a fixed entitlement accrual

[Sandii1]

An employee is on Salary based with annual leave entitlement 6.15 PER PAY PERIOD. What happens if they work less hours one fortnight and the gross wage is manually adjusted for those 56 hrs pay? I see that accrued annual leave on Myob still stay as 6.15 PER pay period . How can we record correct annual leave or sick leave if they work less hours in that fortnight (and there is no annual leave left)?

[Steven_M · Accepted solution]

Hi @Sandii1 

It does depend on the calculation basis of the entitlement. If the calculation basis is x hours per pay period, then it will calculate that amount regardless of the amount hours the employee does work/is paid. For example, if paid them 1000 hours they will still get x leave accrual, if they get paid for 1 hour they will still receive x leave accrual.

Should the employee work fewer hours than you may need to update the leave entitlement hours accrual for that particular pay (can overtype the hours). I would recommend consulting Fair Work or a similar organisation around the guidelines for that.

[Sandii1]

Thanks although I have just changed Salary to Hourly, that way accrued leave will calculate according to hours worked per fortnight. I added an extra catergory for additional hours (over the ordinary hours) as well so it doesnt accrue leave. That way the leave is capped at 4 weeks per year.