Q: We have a staff member was working full time 5 days per week 8 hours per day
Reduced their working days down to 2 days @ 8 hours per day. Hourly rate $59.00 per hour
Takes 2 days or leave (=1 week) according to their new work pattern.
Calculation:
Previous 12 months of earnings $120,000.00 divide my 52 weeks $2307.69 (showing as an hourly rate of $144.23) average earnings includes back pay.
Is this the correct method to apply the holiday pay calculation?

I have been asked to consider previous 4 weeks of earnings bringing the hourly rate back down closer to their current hourly rate.
The argument is the intention of the act which is silent.
That’s the ordinary weekly pay calculation. We don’t need to do that because we can calculate it based on subsection(1) – he isn’t doing overtime or getting incentive payments or anything else. He is just getting an hourly rate which is 1(a).

A: What you have done for AWE is correct:

• Previous 12 months of earnings $120,000.00 divide my 52 weeks $2307.69 (showing as an hourly rate of $144.23) average earnings includes back pay.
  Is this the correct method to apply the holiday pay calculation?

But you must also do OWP and the default if the week can be defined is the agreed week so based on below would be: 16 x 59 = $944.  The 4 week average for OWP cannot be used if the week can be defined.

Also, you must always do the greater of AWE and OWP as you need to show this was undertaken.