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Leave without pay incorrectly impacting leave accruals after change of status

Example:

  1. Full time employee who has worked for several years takes extended period of leave-without-pay.

  2. Employee returns and changes to part-time

  3. New accrual type added for employee from change date as H (Hourly) rather than P (Pro-Rata)

  4. Employee Standard Period hours amended to reflect part-time arrangement (eg down from 40 to 24 per week)

The problem occurs because the calculation for length of service includes a deduction for leave-without pay (as it should), but the calculation takes the total number of hours LWOP recorded divided by the current standard period hours to arrive at a reduction in service and therefore accrual:

  1. 200 hours LWOP recorded

  2. If full time with Standard hours set to 40/week, this would result in a reduction in service of 5 weeks or 5/52 years.

  3. If standard hours now set to 24/week, this results in a reduction of service of 8.333 weeks or 8.33/52 years.

At the moment, the only way I have been able to resolve this was to manually reduce the LWOP hours recorded in the accrual adjustments screen to the effective pro-rata amount. In the above example this would mean changing the LWOP hours from 200 (5 weeks at 40 hours) to 120 (5 weeks at 24 hours).


It took us a long time to work this out ourselves! Documentation in the payroll guide or preferably a warning/note in the payroll itself about how LWOP and length of service is calculated would be very helpful.

Not sure what a program fix would look like, unless it was actually writing records to a "years of service" table for the employee somehow.


  • Alex Pullar
  • Jun 5 2023
Company Halikos Group
Job Title / Role Payroll Manager
I need it... 6 months
  • Attach files

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