Q: I would like to understand technique to adjust AL hours when an employee changes working hours/ pattern? Does Holiday Act stipulate, the daily accrual or equivalent hours/ days be captured in the payroll system at all times and should it automatically adjust when pattern changes? Is there a defined rule to adjust AL ?

For example:
An employee works 24 hours (3days) per week for 1 year before moving to 40 hours (5 days). One week annual leave holiday is taken after this time.

Yr 1        4 weeks entitlement ( 96 hrs)
Yr 2        4 weeks entitlement (160 hrs)
Yr2         1 week is taken ( agreement between ER & EE)

Question1: What constitutes a week? My understanding is that 1 week is the changed working hours which is 40 hours so
the AL balance is 96-40=56 hours equates to 1.4 weeks or its 3 weeks?

Question 2: How will employer calculate termination pay after the 1.6yrs?

Let me know if you have any questions to help respond the above query.

A: There is no accrual in the Holidays Act it is based on entitlement (4 weeks after completing 12 months of continuous employment).  Anything before 12 months of from the last entitlement date to end date before the next 12 month is based at 8% of gross earnings.

The act is about what “genuinely constitutes a working week for the employee” (section 17).  A week is now so if the week changes by agreement between the employer and employee then the week in the payroll system must change to reflect the new agreed week.  Any entitlement already earned would also need to change to reflect the new agreed week.