Employee often works more than 40 hours - leave entitlement

soph00
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Employee often works more than 40 hours - leave entitlement

Hi,

 

I'm using Ace Payroll. I have an employee and contract states that the hours will be 40 hours but will need to work more hours when requested. They often work more than a 40 hour week.

When setting up their employee details I ticked the "works irregular hours" option since they often work more than an 8 hour day. Is this correct or should I enter in Mon to Fri as 8 hours each day and will Ace Payroll calculate at what rate to pay the annual leave eg more than say 8 hours at $20 per hour or will it just calculate based on a standard 8 hours?

 

Hopefully this makes sense.

 

Thanks

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Steven_M
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Re: Employee often works more than 40 hours - leave entitlement

Hi @soph00 

 

We don't typically get a lot of ACE Payroll questions on the Forum as these calls are typically directly through to our dedicated NZ Payroll phone team. However, I've asked the team on your behalf and the recommendation from them would be not to tick that work irregular hours option* and use their contracted hours as the basis for their normal hours/leave. By doing that method i.e using their contract hours, if they are working more hours this will impact the annual leave rate calculation that is used (increased in hours would increase the average weekly earnings).

 

*You typically use the work irregular hours option if they are legitimately working odd hours i.e. hospitality industry for example.

Kind regards,
Steven

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soph00
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Re: Employee often works more than 40 hours - leave entitlement

Thank you @Steven_M . Yes I would usually contact ace payroll direct but I'm working crazy long hours at the moment and I'm not finishing work before the phone lines close at 5pm.

 

Thank you for asking them on my behalf, what you said makes sense so I will amend the leave calculation to the set 8 hours each day

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