How the Leave Unit Conversion is Calculated

This article will explain how the leave taken units from days or weeks to hours conversion is calculated on daily based leave (i.e. sick, domestic & violence, bereavement, alternative holiday leave) and weekly based leave (i.e. annual holidays) taken. 

From the employee's pay run default screen, the leave unit conversion calculations is based on the employee's basic or advanced standard working hours per week and hours per day settings. For more information refer to this article. 

Within the the pay run, employee row, then to the 'Leave Taken' section, if you click over the 'i' icon (as shown below), the leave unit conversion panel will appear which will show you the leave units of days or weeks converted into hours. 

Employee standard working hours a day/week

If using the employee's basic standard working per week, hours per day setting, the leave unit conversion will show as per example below.

Employee Jean Paul, works the standard business hours of 8 hours a day, 40 hours a week.  

Example of employee Josh Hornett,  daily standard working hours of 7 hours a day, 35 hours a week.

Leave Information

• Dates - the dates which the leave is taken.
• Category - leave type e.g. annual holidays, sick leave, bereavement leave, alternative holiday leave, domestic violence leave. 
• Unit Conversion - this will show the days/weeks taken converted into hours. The hours is based on the employee's standard working hours as indicated on the employee's pay run defaults  or defaulted to the business standard working 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 falls 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 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 default screen, otherwise the default used is the business standard hours. 
• Hours or Total Hours- If weekly based leave, the number of weeks taken multiplied by the employees 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 default screen, otherwise the default used is the business standard hours. 

Employee advanced standard working hours a day/week

If you are using advanced standard hours for the employee, the leave estimate will show the break down based on the hours per day as defined in the employee's advanced standard hours setting. Using the example below - employee Justine Henin, works a 40 hour week, 10 hours per day Monday to Thursday, with every Friday off. 

Leave information

• Dates - the dates which the leave is taken.
• Category - leave type e.g. annual holidays, sick leave, bereavement leave, alternative holiday leave, domestic violence leave. 
• 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.

Leave estimate & calculation

• x days are public holidays - if any of the leave days taken falls 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 number of leave days taken. 

Leave upon termination

For terminations, the calculation method section will display for advanced hours, the calculated value in the employee's hours per week, which is multiplied by the annual holidays leave balance.

The total hours should match with the total hours in the 'Termination annual holidays entitlement' earnings line, total hours.

If you have any questions or feedback please let us know via support@nzpayroll.co.nz