To support staff with family or other commitments, employers may allow staff to adopt a 46/48/50-week year for a negotiated 12-month period. The salary paid to them will be 46/52, 48/52 or 50/52 of their full-time salary.
Within the nominated 12-month period, staff are able to apply to have two weeks (50/52) or four weeks (48/52) additional annual leave, with a proportionate reduction in salary spread over the full year.
- Create a specific leave allowance template for purchased leave for each option, e.g. 2 weeks, 4 weeks etc.
- Each annual leave field will have the accrual based on whatever extra annual leave is being purchased, e.g. 2 weeks would have the annual leave accrual as 0.11538 hours per hour worked:
- Assign the corresponding leave allowance template to the employee via their Employee file > Pay run defaults page.
- Change the salary of the employee by dividing leave weeks by total weeks e.g. 2 weeks extra annual leave would be Salary x 50/52. You can enter the new rate on the Employee file > Pay run defaults page.
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If you want to keep a record of the original salary, you can enter it as a note on the Employee file > Details page:
You can also set up an anniversary date to trigger when the year is up to then pay out any remaining balance of leave not taken.
- Create a specific leave allowance template for purchased leave for each option e.g. 2 weeks, 4 weeks etc.
- Each annual leave field will have the accrual based on whatever extra annual leave is being purchased e.g. 2 weeks would have the annual leave accrual as 0.11538 hours per hour worked:
- Assign the corresponding leave allowance template to the employee via their Employee file > Pay run defaults page.
- Navigate to Business > Payroll Settings > Deduction Categories.
- Create a new deduction category called Purchased Leave.
- Add the deduction category to the employee under Pay Run Inclusions.
Warning
Purchased leave accrues at the pro-rata rate in the leave year.
Example: if an employee has purchased 50/52 leave, and they would usually accrue 13.3hrs of annual leave per month, then they would accrue 20hrs per month for the leave year.
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