Change in Annual leave hours due to change in weekly hours mid-tenure

VB_stagler123

Hi 

 

I have a question regarding how to adjust annual leave accumulation when an employee's hours change mid-tenure.

 

When I updated an employee's weekly hours from 30 to 40, the system automatically recalculated their total accumulated leave as if they had been working 40 hours since the start of their employment.

 

Please advise on how to correctly adjust these settings so the leave reflects the actual hours worked during each period of their employment?

 

Appreciate a response.

jenniek

Hi @VB_stagler123 This is correct as per NZ legislation.  With an increase in hours- because annual leave is reported in "weeks" the weeks actually change to become 4 weeks at 40 hours per week instead of 30. So you should not be splitting it to calculate for each period of employment. The visa versa happens when someone decreases their hours, but in a decrease situation the leave rate increases because the gross earnings calcuation is squashed into a lesser number of hours. In your case, the system will pay the std rate of pay because leave cannot be paid at less than the ordinary rate.