If an employee's hours are reduced part way through the year, a pro rata manual adjustment will be required at the employee's Holiday Anniversary Date to take into account the period of the year their annual leave entitlement was greater.
To work this out, make a note of the amount of time the employee was at the increased/full time hours, e.g. 40 hours a week, so 160 hours a year for 5 months, so 160 / 12 = 13.3 x 5 (months) = 66.5 hours.
If the employee reduced their hours to 24 hours a week, this gives them an annual leave entitlement of 96 hours a year. But this amount would only be for 7 months (as the first 5 months, they worked 40 hours a week). So 96 hours / 12 (months) x 7 (months) = 56 hours.
Based on this calculation, an additional 26 hours needs to be included. This is because MYOB Payroll has automatically calculated 96 hours of annual leave (based on the new normal hours per week, which is 24 hours), however the employee is entitled to 122 hours of annual leave (66.5 + 56 = 122 hours).
In Bill's example above, the Annual Leave due as at is sitting at 96 hours as per his new normal hours. However, Bill is entitled to 122 hours (66.5 + 56 = 122), so this amount needs to be changed to show the correct annual leave.