Q: I have a question regarding accrual of annual leave in hours.
If an employee started their employment on 1 Jan 2025 working 20 hours per week but in April changed their hours per week to 40 hours.
Will the total accrual be based on 20 hours from 1 Jan 2025 to 31 March 2025, and from 1 April 2025 be based on 40 hours? At the end of the year, the total hours accrued will be a pro-ration of both weekly hours.
A: There is no accrual of hours in the Holidays Act. You accrue 8% of gross from day one and once you hit 12 months continuous employment that changes to entitlement (4 weeks).
- AWE is gross for 12 months /52
- OWP is the agreed week or a 4 week average
Changing hours is just about the week, and the new agreed week is the one that is used not the old week.