- Go to the Maintenance command centre and click Maintain Employees.
- Select the applicable employee.
- Click the Leave Details tab.
- Enter the required values in the Normal days/week and Normal hours/day fields. This will adjust their Normal Hours per week.
The Normal Hours per week setting is used:
- to allocate the annual leave entitlement for the year. For example an employee working 40 normal hours per week is allocated 160 hours leave at their anniversary date (4 weeks X 40 hours per week=160 hours).
- as a divisor for the calculation of the annual leave rate. The Average Weekly Earnings and the Ordinary Weekly Pay are divided by the Normal Hours per week to calculate the annual leave rate. See Annual leave rate calculation.
What is the effect of increasing the Normal Hours per week?
As shown below, Bill currently works 8 hours a day, 3 days a week, totalling 24 hours a week. This gives Bill an annual leave allocation balance of 96 hours a year. His current annual leave due rate is $51.66 which equates to $4960 per year ($51.66 x 96 hours).
Here's what happens when we increase Bill's days per week from 3 to 5:
This increases Bill's Annual Leave Entitlement to 160 hours a year, and decreases his rate to $31, which is correct. However if no other changes are made, this makes the Current Annual Leave Due $2976 ($31 x 96 hours), a decrease of $1984, which is incorrect.
The next task explains how to correct the Current Annual Leave Due.