changing employee from casual to permanent

Contributing Cover User Beeenz
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changing employee from casual to permanent

I have an employee who has been on a casual contract with holiday paid 'as you go" but now her contract is changing to permanent and we want to accrue her holiday pay for her rather than pay it on top of her fortnightly pay.  Her anniversary date is in May each year so if we change her settings by removing the 1 from her holiday pay setting and her leave starts accruing I am hoping it will show that she has accrued the days since May but that she has been paid already for them.  Moving forward then she will accrue more and will be paid for her holidays in the usual way.  Or should we set her up as a new employee?

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MYOB Moderator Steven_M
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Re: changing employee from casual to permanent

Hi @Beeenz 

 

With changes in employment it does come down to will the employee get a new holiday anniversary date for the new contract. This is not something that we would be able to advise upon and is probably best discussed with Employment NZ or a similar organisation.


If they will receive a new holiday anniversary date then you would be looking at creating a new employee record for them with that new start date for the new contract and thus a new anniversary date.

 

If the employee is still deemed to be on the previous anniversary date, you would need to make changes to the annual leave after the employee's holiday anniversary has been completed. What you will need to look at doing is calculating the weekly entitlement for the employee (annual leave entitlement divided by 52), you then would work out how many weeks the employee was on the old contract. You can then multiply that by the weekly holiday entitlement to give you the amount of hours to reduce the Annual Leave Due as at value by after completing that holiday anniversary update.

Kind regards,
Steven

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Contributing Cover User Beeenz
8 Posts
Contributing Cover User
New Zealand
Contributing Cover User

8Posts

1Kudos

1Solutions

Re: changing employee from casual to permanent

Hi Steven, Thank you for your comments, much appreciated.

But because I didn't get a reply from anyone I have taken care of it by changing her settings to start her holiday accrual based on her hours worked each fortnight (70 hours per fortnight).  This has given me an accrual figure for annual leave accrued since her anniversary date in May.  54 hours.  To compensate for the holiday pay she has already been paid for, we will substitute some of her normal hours with holiday pay which will then show as leave taken in advance i.e. It shows on the bottom of her payslip Annual Leave Accrued since 23/05/2019 54.00 hours less 54.00 hours taken in advance equals 0.00 hours available.  This will work for us and going forward she will accrue leave normally.  I think this will work.  Kind regards....

 

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