Work Pattern Considerations and Compliance in Payroll and HRIS
Exploring work pattern considerations, types, changes, calculations, processes, and annual leave methods in the context of Payroll and HRIS compliance. Discusses responsibilities, entitlements, leave balances, and maintaining accurate payroll information.
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Barbara Houlbrooke Payroll & HRIS Consultant CHANGING WORK PATTERNS & HOLIDAYS ACT COMPLIANCE
Work Pattern Considerations Contract, Roster/Schedule, Actuals Permanent, Temporary Employee agreement and good faith Who is responsible for determining work patterns? Who is responsible for maintaining compliance? How does payroll know?
Work Pattern Types Predictable and Fits 7 day cycle 8 hours per day Monday to Friday Entitlement 20 days Predictable but not 7 day cycle 12 hours per day 4 on 4 off average 42 hours per week over 3.5 days Entitlement 14 days but will this provide 4 weeks off provide 16 days Unpredictable Up Front need basis contract hours and level of variance around this agreement with employee
Change in Work Pattern Example: Worker FT 40 hours per week, 5 days = 20 days AL Changes to 20 hours, 5 days part way through year What is the entitlement on their next anniversary? What is the effect on the Average Rate? How will the leave balance change?
Calculation Example Anniversary 01/04/18, Entitlement 20 days Roster 40 hours 5 days Balance at 01/10/18 is 10 days Roster change to 40 hours 4 days Balance recalculated so 4 weeks on anniversary so Balance now 8 days AWE rate changes as AWE Week is divided by 4 days rather then 5 So Balance goes down and Rate goes up
Processes to Determine Work Patterns New Starter contract or roster Variation permanent change in pattern Temporary Change length of time Periodic Review check payroll set up to actual days/hours worked how often should this happen
Annual Leave Method BAPS Method Group Work Arrangement On-going Review Salary with no extra hours or irregular extra hours, may have permanent allowances OWP/AWE OWP known as based on fixed work pattern. RDP as every day based on fixed work pattern. Monitor to ensure no extra regular hours or payments. Permanent allowances can be paid separately for BAPS leave as enduring allowances but for OWP and AWE should be in the rate. Monitor to ensure variation processed for extra hours so the Hours/Days per Week changes to maintain 4 weeks entitlement, review extra payments. 1 Salary with regular variable extra hours or extra payments RDP or ADP depending if rate for a day is known. 2 4 Week OWP/AWE 3 Waged with regular hours and extra irregular payments Waged with variable hours and/or variable payments OWP/AWE RDP Monitor hours and extra payments 4 4 Week OWP/AWE ADP Monitor for changes Monitor if fixed term is more than 12 months. Could accrue AL and allow days taken with 8% paid on termination. 5 Fixed Term less than 12 months 8% PAYG or paid on termination. RDP Or 4 weeks entitlement then OWP/AWE or 4 Week OWP/AWE 8% PAYG Monitor if hours increase or regular and over 12 months employment, and meets 6 months sick leave criteria RDP. Need to pay the hours that would have been paid if worked on that day. 6 Casuals
Summary Determine the types of work patterns in your business Educate HR/Managers on impact of variable work patterns and compliance Agree policy on how the types will be treated for leave entitlements and rate methods Ensure employee agreement with initial contract and variations for changes Set up review process to maintain compliance
Houlbrooke Group Limited Barbara can help you with: compliance reviews payroll audits solution selections implementation services business process improvement and change
