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Calculating Annual Leave when an Employee Has Irregular Working Hours
After this option has been enabled, when an employee is being placed on Annual leave in "Process a Pay", and then "Time & Income", you can select the information ( i ) button next to "to be paid"... ... which will show a calculation of hours converted from the employee's ordinary weekly pay (average earnings over the past four weeks), and average weekly earnings (average earnings over the past fifty-two weeks). This tool is therefore beneficial for determining how many hours of leave an employee should be paid for when they do not have a regular working pattern. You would want to place the employee on the higher of the two figures in order to follow the Holidays Act 2003 (in the above example, this would be "7.20" hours). |