This article will explain how any leave taken, that is day or week unit-based, is converted into hours when processed in the pay run. Specifically, this only applies to leave categories configured to accrue using either the "standard days per year" or the "standard weeks per year" method. For example, if an employee has taken 2 days of compassionate leave, we will explain how this amount is converted into hours and what components of employee settings you need to be aware of that determine the conversion.
Accessing the Leave Unit Conversion Panel
When leave is applied or taken in a pay run, it will display in the "Leave Taken" section of the employee's pay. For any leave taken that is day or week based, you will see an 'i' icon to the right of the comments field. Clicking on the 'i' icon (as shown below) will open the context panel and detail the conversion calculations.
The detail and format of data contained in the context panel will vary depending on whether the leave unit type is daily or weekly and also whether an employee has basic or advanced work hours set up in their record. This article will run through all scenarios for your information.
How employee working patterns affect calculation of leave hours
You can configure a basic or advanced work pattern for an employee, from within the employee's Pay Run Defaults page. For more information on this topic, refer to this article.
As a minimum, a basic work pattern must be set up for an employee. This will include the number of hours worked per week and the number of hours worked in a day, even if it is an estimate. Setting up advanced work hours provide a more detailed work pattern and allows the user to detail the days of the week the employee actually works and how many hours on each of those days.
In a nutshell, whatever work pattern type is configured for an employee, the leave hours will be calculated by looking at the employee's hours per week value (when applying weekly based leave) and hours per day value (when applying daily based leave).
Calculating leave hours using an employee’s basic work pattern
An employee, Brendan Norm, works a 38 hour week at 7.6 hours per day, as configured in his Pay Run Defaults page:
Example 1: Brendan takes 1 week of annual leave which converts to 38 hours in the pay run:
The leave unit conversion panel shows the following information:
Using the leave period taken by Brendan, the system calculates this is made up of 5 working days (ie weekends are not counted towards the employee's working days). Then because the employee's work pattern (via the Pay Run Defaults screen) states he works a 38 hour week, the 1 week is converted to 38 hours in the pay run.
Example 2: Brendan takes 2 days of compassionate leave which converts to 15.2 hours in the pay run:
The leave unit conversion panel shows the following information:
Using the leave period taken by Brendan, the system calculates this is made up of 2 working days as there are no weekend days within the leave dates. Then because the employee's work pattern (via the Pay Run Defaults screen) states he works a 7.6 hour day, the 2 days are converted to 15.2 hours in the pay run.
The Leave Unit Conversion Panel in detail for a basic work pattern
Leave Information
- Dates - the dates which the leave is taken.
- Category - leave type e.g. annual leave, personal/carer's leave, compassionate leave, etc.
- Unit Conversion - this will show the days/weeks of leave taken and then converted into hours.
Leave estimate
- Number of week days - the number of leave days taken.
- Of those days, x are public holidays- if any of the leave days taken fall on a public holiday.
- Assessing x days at x working days per week - for weekly based leave, this will show the number of leave days required based on the employee's standard working days a week.
- Leave estimate - the number of weeks or days of the leave taken.
Calculation method
- Weeks or Days - If weekly based leave, the calculation determines the number of leave days taken divided by the days in a work week. If daily based leave, the number of work days of leave taken.
- Weekly hours or Daily hours - If weekly based leave, this is based on the standard weekly hours. If daily based leave, the employee's daily working hours. Standard weekly hours and the daily working hours are both defined in the employee's Pay Run Defaults page.
- Hours or Total Hours - If weekly based leave, the number of weeks taken multiplied by the employee's standard weekly hours. If daily based leave, the number of days taken multiplied by the employee's standard working hours per day. Once again, standard weekly hours and the daily working hours are both defined in the employee's Pay Run Defaults page.
Calculating leave hours using an employee's advanced work pattern
An employee, Barry Ledger, works a 46 hour week with varying hours on his work days, as per the following configuration in his Pay Run Defaults page:
Example 1: Barry takes 1.4 weeks of annual leave which converts to 62 hours in the pay run:
The leave unit conversion panel shows the following information:
Using the leave period taken by Barry, the system calculates the days Barry works in a week using his advanced work pattern configuration and the hours worked on each of those days. Any public holidays within the leave dates are not included as leave hours and that is how the 62 hours are calculated.
Example 2: Barry takes 4 days of personal/carer's leave which converts to 36 hours in the pay run:
The leave unit conversion panel shows the following information:
Using the leave period taken by Barry, the system calculates the days Barry would have worked during the leave dates (using his advanced work pattern configuration) and the hours worked on each of those days.
The Leave Unit Conversion Panel in detail for an advanced work pattern
Leave information
- Dates - the dates which the leave is taken.
- Category - leave type e.g. annual leave, personal/carer's leave, compassionate leave, etc.
- Unit Conversion - this will show the days/weeks taken converted into hours. The hours is based on the employee's advanced standard working hours as indicated on the employee's Pay Run Defaults page.
Leave estimate & calculation
- x days are public holidays - if any of the leave days taken fall on a public holiday.
- Advanced standard hours - number of days of leave taken based on advanced standard working hours/days.
- Leave estimate - the number of weeks or days of the leave taken.
You will notice that there is no calculation method section for advanced standard working hours. This is intentional as the break down per day is already shown within the leave estimate section based on the dates of the days taken within the leave period.
If you have any questions or feedback please let us know via support@yourpayroll.com.au.