FAQ – Prorata Leave

 This is an explanation of how pro-rata annual leave can be configured in PayTek. This is applicable to permanent part-time employees who work varying hours per pay period.
We will compare a full time employee to an employee working ad hoc hours.
This company has a fortnightly pay cycle and the full time hours are 40 per week for simplicity.
Mr Fulltime is a full time employee working 80 hours per fortnight and entitled to 4 weeks leave per year.
His accrual is the simplest and simply accrues 4 x 40 =160 hours of annual leave over a year by allocating 160/26 = 6.154 hours per fortnight.
This is accrued regardless of what hours/leave he is paid for in the fortnight.
As you can see his leave accrues at the same rate even when he takes leave in payrun 3.
After 13 fortnights he has a balance of 60 hours accrued being 80 hours accrued less the half a week (20 hours) leave taken in payrun 3.
Mr Adhoc is employed permanent part-time and usually works half-time ie 40 hours per fortnight. Because the hours vary we accrue his leave on a percentage of hours worked to calculate pro-rata leave. He is entitled to 4 weeks leave prorata.
We calculate his percentage as 4 weeks for every 52 worked so 4 / 52  = 7.692%
This calculation is based on the assumption that if he should work full time then in a year he would work 46 weeks, have up to 4 weeks leave and up to 2 weeks sick leave totaling 52 weeks.
So he accrues leave on his annual leave and sick leave as shown in the pay item group.
Over the 13 weeks, Mr Adhoc has worked an average of 40 hours per fortnight and taken half a week leave (in his case 10 hours) so he has a balance of 30 hours.
 
Notes:
In a normal fortnight he accrues prorata half of Mr Fulltime as he works 40 hours a fortnight ie 3.08 hours.
In payrun 3 he took 10 hours leave and worked 30 hours so accrues leave on 40 hours.
In payrun 4 he only worked 10 hours so only accrued 0.77 hours.
In payrun 5 he worked 70 hours (catching up his average) so accrued 5.38 hours.
In payrun 6 he did not work so did not accrue any leave.
In payrun 7 he worked 80 hours (once again catching up his average) so he accrued 6.15 hours.
At then end of 13 fortnights he has an accrual balance of 30 hours (prorata for half time less the 10 hours taken)
 So had Mr Adhoc worked twice the hours (effectively the same as Mr Fulltime) his accrual balance would have been the same and the full time employee ie 60 hours owing.