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Understanding the interpretation of working week

How working week settings determine leave calculations and payments.

Updated over 4 months ago

The interpretation of working week settings are critical as they determine how leave is calculated. The impact on leave varies by country, but generally proportions the amount of leave used in a pay process based on how a working week is interpreted.

These settings are configured in each employee's contract settings.

Days per week

Number of standard working days per week as defined by the employee's contract. Set what is most common if there is no standard.

One day equals

Number of standard working hours per day as defined by the employee's contract. Set what is most common if there is no standard.

One week equals

Number of standard working hours per week as defined by the employee's contract. Set what is most common if there is no standard.

Hourly rate

Should be set to whatever the employee's employment agreement defines as their standard hourly rate.

Annual salary

Annual salary is tied to hourly rate and one week equals. As a formula it is represented as:

hourly rate Γ— one week equals Γ— 52 = annual salary

On that basis:

  • If you change annual salary, it will change the hourly rate.

  • If you change hourly rate, it will change the annual salary.

  • If you change one week equals, it will change the annual salary.

Additional settings

Truly irregular work pattern

Indicative for every country except New Zealand. For New Zealand, it will replace the use of contract settings to determine an ordinary week with ordinary weekly average.

Pay rate includes casual loading

By default, casual employees will be paid any form of leave loading or holiday pay on top of their earnings. When this option is selected, it will operate on an inclusive rate instead. Only works for New Zealand and Australia, it doesn't do anything for other countries.

Split-rate employee

Enables an employee to have multiple pay rates saved in a template. If this option is not selected, changing the hourly rate in the contract setting will override any pay rates previously saved in template pays.

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