Q: May we kindly seek for your assistance on a clearer approach regarding the accrual of annual leave whenever there is a change in work hours. What happens when there are earned AL hours from the full-time of 37.5 hours per week then there’s a sudden change in the working days/weekly hours within a year.
For example, an employee earned an entitlement from the last anniversary of 6 weeks on 01 January. From January to March, he earned .25 weeks/7.5 days/56.25 hours. By April, there’s a change in work hours to 30 hours per week.
How will the change in work hours affect the earned AL, AL balance and accrual for the current and succeeding months.
A: How can an employee earn 6 weeks as the Holidays Act provides 4 weeks of entitlement after 12 months?
There is entitlement and accrual.
- Entitlement is when the employee has worked 12 months of continuous employment and received their 4 weeks
- Accrual is before 12 months and is based on 8% of gross earnings it is not time
A week is by agreement, and when the week changes, any entitlement converts to the new week. If you have accrual set up in your system, that is not the Holiday Act but for liability.