FULL TIME EMPLOYEE TO PART TIME

Wingham Sheathers
Wingham Sheathers Member Posts: 10
edited June 2020 in Accounts Hosted
An employee has gone from Full time to part time half way through the year. How do I adjust his holidays for half the year so that it only accrues part time holiday hours for 7 months prior to it resetting in January 2020

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020

    Hi Wingham

     

    Leave is accrued as per time worked not annually & therefore I always recommend Leave be set up to accrue “Per Hour”.  That way it calculates correctly, regardless of how many hours the employee works.

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Wingham Sheathers
    Wingham Sheathers Member Posts: 10
    edited June 2020
    If I change it to calculate per hour, does that effect the holidays he has already accrued.  We have him set to reset 1st January.  If I change it now to per hour will it still read the same for holidays he has acquired then calculate any further holiday time per hour to add to it
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020

    Yes, the current available balance amount will be retained.

     

    Providing the current leave balances are correct, there’s no problem changing it to Hourly going forward.

    The only thing to be aware of is it will then ONLY calculate when the number of “Hours” are entered on a Pay as this is what drives it.

    Eg If you’re paying anyone a Salary, you MUST enter the Hours on each pay in order for the leave to calculate. 

    The same applies to any leave taken/paid – You MUST enter the “Hours” quantity for the leave balance to accrue & reduce accordingly.

     

    The Hourly accruals are as follows (based on a 37.5 / 38-hour week):

     

    Personal (Sick):        0.03846 (The system rounds this to 0.03833 – This is fine)       

    Holiday (Annual):    0.07692 (The system may round this to 0.07694 – This is fine)

    LSL:                               0.01667

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Wingham Sheathers
    Wingham Sheathers Member Posts: 10
    edited May 2020
    Thankyou for your feedback.  As our employee (who previously was full time) has part long service, will I need to change anything in regards to this as he will no longer get long service under the Federal Award.  What changes do I need to make.  Also we have a new employee just starting, it is better for him to do his pay per hour.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited May 2020
    Further to the comments from Shaz, not sure why leave is resetting?  Annual and personal leave accrue from year to year - they dont reset?

    Usually when an employee changes from full time to part time, they are still eligible for Long Service Leave - its just that you have to work out their average hours - each state has different rules around the period you use for averaging, but I don't know any state that does not have Long Service Leave provisions?  Perhaps just check up on that for your state?
  • Wingham Sheathers
    Wingham Sheathers Member Posts: 10
    edited May 2020
    His wage comes under the Federal Award and does not accrue Long Service once he is part time.  If he was under the State award he would.  I did find this out with the MTA but what Im not sure is, do I need to change anything in Reckon or is it something that is calculated by us after 10 years.
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020

    Like Linda, I’ve not heard of anyone long-term not being eligible for LSL - This is a Fair Work directive & even in pre-modern Awards, there should still be a provision for LSL in there …?

     

    In terms of setup, my LSL accrual calculation is based on WA LSL entitlement which is 8.6667 weeks after 10 yrs (or pro rata after 7 yrs, depending on the applicable Award) so it may be slightly different for other states.

    If you’ve not had LSL setup to accrue then you will need to calculate it manually.

     

    I’d recommend getting specific advice from HR specialists rather than MTA regarding the LSL entitlement. 

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited May 2020
    What award are you referring to specifically?  I agree with Shaz, I dont believe any of them have no Long Service.  OK - more research done - the National Employment Standards are where it talks about each state having their own entitlements...but I did find something under the MTA of NSW about no LSL for part time or casual workers under some award?  still investigating..
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited May 2020
    14. How do Federal Awards affect the NSW Long Service Leave Act?

    The NSW Long Service Leave Act 1955 may not apply if the employer is respondent to a pre reform federal award or is a member of an employer association (for example the Motor Traders Association) that made them respondent to a pre reform federal award.

    This is because some pre reform federal awards provide for long service leave (see clause 4 of Part III of the federal Metal, Engineering and Associated Industries Award 1998) or there may be a separate long service leave award (see Vehicle Industry - Repair, Services and Retail - (Long Service Leave) Award 1977).


    If you are unsure, we recommend that you check with the Fair Work Ombudsman on 13 13 94 or visit their website.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited May 2020
    hmm... seems another day not wasted - I did not know there were any rules like this around!!! cant find a definitive answer - but it seems members of the MTA may have these rules?  feel sorry for the employee!
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020

    Yes, I looked at that too Linda. 


    It suggests that the State/Territory laws only don’t apply in the case of pre-Modern Awards that contain LSL entitlements, however if the Award doesn’t cover this then the State/Territory LSL rules apply:


    Most employees' entitlement to long service leave comes from long service leave laws in each state or territory. These laws set out:

    • how long an employee has to be working to get long service leave (eg. after 7 years)

    • how much long service leave the employee gets.

      In some states and territories long serving casuals are eligible for long service leave.

      To find out about long service leave entitlements, contact the long service leave agency in your state or territory:

    • how long an employee has to be working to get long service leave (eg. after 7 years)

    • how much long service leave the employee gets.



    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)