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VB_stagler123's avatar
VB_stagler123
Member
28 days ago
Solved

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

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.

Payroll
  • jenniek's avatar
    jenniek
    27 days ago

    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.

2 Replies

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    28 days ago

    Hi VB_stagler123,  

     

    When you change an employee’s standard hours partway through their employment, what you’re seeing is expected. The system keeps their annual leave in weeks and re-expresses those weeks using the new work pattern, rather than automatically splitting the balance between the old hours and the new hours.

    If you need the balance split between the old and new hour patterns, you’ll need to handle that portion manually, either by:

    • entering a leave adjustment to reflect the correct balance, or
    • keeping a separate record (for example, a spreadsheet or separate leave type) that tracks the balance as “pre‑change” vs “post‑change” based on the hours they were working at the time.

     

    Regards,

    Genreve 

  • jenniek's avatar
    jenniek
    Ultimate Partner
    27 days ago

    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.

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