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How to Update an Employee's Four Weeks Entitlement
Please note: This guide is only relevant if you wish to do this manually. This guide has mostly been replaced by the "Restricted Annual Leave (In Weeks)" guide, which is part of the greater "Annual Leave Settings - In-depth Overview" section. This guide is kept up as it may still be relevant if you wanted to calculate annual leave in weeks but show it in hours, or if you were simply interested in seeing how the system makes the calculation of annual leave in weeks. <- Make sure you read this!
While the Holidays Act 2003 can often be open to interpretation, it may be in your company's interest to only process annual leave in weeks, rather than hours. In the event that an employee's default hours are updated, following the steps below will ensure that your company stays compliant with even the most scrupulous interpretation of legislation.Navigate over to "Employee Settings", then "Employee Details". Select an employee from the left-hand side and then select "Default Hours" under "Other Details".
Select the existing "Start Date" from the table. Change the total hours the employee ordinarily work into each day. If they will not normally work on a given day (e.g. never on a Sunday) enter "0" for that day. Once completed, select "Save".
Navigate over to "Process a Pay", and then "Leave Pay Rate". Select the employee from the left-hand side. Select the information ( i ) button to the right of the "Average (AWE) Rate".
Select "Refresh", and then "Continue". Wait for the system to finish recalculating the employee's annual leave accrual.
If the employee has not been with you for a whole year, then you are all finished.
Note: If the employee has been with you for more than a year, then there is an extra step.
You should only follow this step if the employee has been working for more than a year (or received an annual leave entitlement already). Navigate over to "Process a Pay", and then "Leave Summary". Select the employee from the left-hand side. Along the top of the page, view their "Annual Leave" balance, specifically next to "Available Entitlement".
Calculations:
Example:
Navigate over to "Employee Settings", and then "Employee Details". Select the employee from the left-hand side. Open "Entitlement Given" under "Other Details". Ensure "Annual Leave" is selected. Select "Add". Enter the "Date" as the date the employee's hours were updated. Set the "Reason" as "Special Adjustment". Enter the "Hours" as the difference between the annual leave balances, as above. This can be either a positive or negative figure, depending on if their hours are increasing or decreasing. Enter a "Description" for your own records, and then select "Save".
You have now successfully updated your employee's entitlement to four weeks of annual leave. If you have any questions, or get stuck at all, feel free to contact our Help Desk between the hours of 9:00 a.m. to 5:30 p.m., Monday through Friday, excluding public holidays. You can email us at support@crystalpayroll.co.nz, or give us a call on 09 480 0123, extension 1.
Navigate over to "Process a Pay", and then "Leave Pay Rate". Select the employee from the left-hand side. Select the information ( i ) button to the right of the "Average (AWE) Rate".
Select "Refresh", and then "Continue". Wait for the system to finish recalculating the employee's annual leave accrual.
If the employee has not been with you for a whole year, then you are all finished.
Note: If the employee has been with you for more than a year, then there is an extra step.
Additional Step: Updating Annual Leave Entitlement Balance
Calculations:
- Calculate the employee's previous weekly hours.
- Calculate the employee's current weekly hours.
- Divide the employee's current weekly hours by their previous weekly hours.
- Multiply the resulting sum by the employee's available annual leave entitlement. This result is what their entitlement needs to be now.
- Work out the difference between the 'new' entitlement, and the 'old' entitlement. The difference is the final figure we need.
Example:
- 40 hours a week.
- 22 hours a week.
- 22 / 40 = 0.55.
- 35 x 0.55 = 19.25.
- 35 - 19.25 = 15.75.
Navigate over to "Employee Settings", and then "Employee Details". Select the employee from the left-hand side. Open "Entitlement Given" under "Other Details". Ensure "Annual Leave" is selected. Select "Add". Enter the "Date" as the date the employee's hours were updated. Set the "Reason" as "Special Adjustment". Enter the "Hours" as the difference between the annual leave balances, as above. This can be either a positive or negative figure, depending on if their hours are increasing or decreasing. Enter a "Description" for your own records, and then select "Save".
You have now successfully updated your employee's entitlement to four weeks of annual leave. If you have any questions, or get stuck at all, feel free to contact our Help Desk between the hours of 9:00 a.m. to 5:30 p.m., Monday through Friday, excluding public holidays. You can email us at support@crystalpayroll.co.nz, or give us a call on 09 480 0123, extension 1.