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One off change to employees Standard hours
Overview
When an employee changes their standard hours, it is important to consider the following:
- The effect the new hours will have on any leave entitlements and balances and ensure that the necessary amendments are made to these.
- Ensure the annual salary is still relevant for the new standard hours. If you are using the payrate option of FTE, changing the employee's standard hours will affect the amount of money the employee will receive. If your employee is set up to use the Annual salary payrate option, the Annual salary will need to be re-entered taking in to account the new hours.
Client Responsibilities
The Client shall provide clear details relating to employee remuneration changes.
Direct Access: This instruction will be entered through Admin Direct Access, Employee Modification screen and will include
- Employee Id
- Employee Name
- Standard hours
- Effective date of the change
- Instructions on leave entitlements that are affected by the change.
- If not using FTE Annual salary, advise of any change to Annual salary
Excel: A single Excel spreadsheet summarising all employee changes may be submitted for the payroll period.
Email: A single email detailing all employee changes for the payroll period.
Note:
When an employee changes their standard hours (or days) of work it is important that any leave entitlements are reviewed to ensure they still receive their full 4 week entitlement of annual year each year.
Employers must respond to changes in employees' work patterns – employers (and their payroll staff or providers) need to be aware of any permanent or temporary changes to an employee's agreed work pattern. Sometimes these changes might not be immediately obvious. They must discuss these changes, and their implications for the provision of the Act's entitlements – particularly the annual holiday entitlement – in good faith and in a timely manner.
The changes should be discussed with your employee.
Here is some information regarding Annual leave from MBIE https://www.employment.govt.nz/assets/Uploads/d53229842c/holidays-act-2003-guidance-holidays-leave-.pdf
Page 43 talks about changing work patterns.
EasiPay Responsibilities
Datacom will modify and check employee standard hours setup within the payroll system.
- Looking at the affect this has on leave entitlements and balances and making the necessary amendments to these.
- Ensuring the annual salary is still relevant for the new standard hours.
- Update the leave balances so that the balance in weeks now reflects the new standard work pattern
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