Annual Leave on ProRata based 'U'nworked PHOL shifts
A client recently reached out with an apparent issue in the AI and leave accural processing in Powerforce
- The issue revolves around Unworked P/Hol shifts not being 'added' into the pool of hours to accrue Annual Leave
- The 2nd part of this same issue is that the A/L accruals in a fortnight period are capping at 76, whereas the employee in question had a total of 82 hours worked ( including 2 U/PHOL ) shifts.
The U/PHOL configuration
The current 'U'nworked PHOL scheduling code is as follows:
The 'FULLTIME' employment type definition is quite standard
The necessary detail of the pay-class
The definition of the Annual Leave (A/L) code is as follows, and the point in this discussion is:
- The employment type is 'Fulltime'
- The 'Accrual Method' is ProRata of Hours
In order to resolve this matter we had to dig into the code to understand what logic was being applied and the design of Powerforce payroll
The software design is based on the following generic definition of terms
- A fulltime employee is entitled to 'x' hours per annum and that coincides with working 'n' hours per week.
- Pro-rata exists so that permanent part-time employees accrue leave at the same rate as full time employees.
In practical terms:
- Full timers work 40 hrs per week and are entitled to 4 weeks leave
A part timer that works 20 hrs per week is therefore entitled to 2 weeks leave.
If a full timer works more than 40 hrs per week then don’t accrue more leave; they get paid overtime.
- A part timer by definition cannot work more than a full timer and therefore cannot accrue more leave than a full timer.
So whilst there is a max entitlement, there is also a maximum rate at which A/L can accrue.
- The max entitlement ensures you don’t avoid taking leave thereby building up 2-3 years of accruals and taking it all at once.
The max accrual rate ensures you don’t accrue leave faster than you’re entitled to.
How do you max the rate?
- By maxing the hours per week to which you can apply the pro rata value to.
If I’m a “part timer” but I squeeze in 60 hrs to my working week, well that’s extra cash in my pocket but I can’t also pick up extra leave. That’s double dipping.
A new patch has been made to enhance processing to accommodate (1). U/PHOL, where the Accural Method is "ProRata" will now present itself for processing into A/L.
The (2nd) issue is contrary to the inherent design of Powerforce payroll as expressed in the abovecommentary.
- However, you may choose to follow the suggestion in the section comments above to extend the max hours values of the employment type.