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Using the permanent part-time method (New Zealand)

When an employee works irregular hours/days and is accruing leave as a permanent employee, the permanent part-time method is the best option to ensure the accrual is equivalent to 4 weeks.

Officially, part time refers to an employee who works a set amount of hours each week, ranging from a few hours to about 30 hours per week. This guarantees a steady income however the employee and employer can agree to more hours/days.

A good example of this would be a student who is working 1 day every week and has the opportunity to request extra days when they are available over the school holidays or if their schedule changes while at university.

This can also be the case when a fixed term employee is working longer than a 12-month contract and work patterns are not fixed.

Although a permanent part-time employee is not officially a full time employee, in MYOB EXO Payroll the option of using the permanent part-time method can also be useful for a full time employee under the following circumstances:

  • When a full time employee regularly works extra days, the agreement can be to accrue extra leave instead of increasing the Holiday Pay rate to ensure the employee still gets 4 weeks annual leave per year. In the Setup EXO Payroll Leave Management area, tick ‘Let permanent part-time employee accrue more than their annual entitlement’ option for full time employees working extra days.
  • When an employee changes from part time to full time, the permanent part-time method can ensure the correct accrual of leave until the employee’s anniversary instead of creating Holiday Pay Groups. It is important to update the Hours/Days Paid in the standard pay to reflect the full time contract.

The permanent part-time method is recommended when an employee returns from parental leave and gradually increases hours back to full time.

In all cases Edit Hours/Days in the employee’s Holiday Pay screen should be checked to ensure the correct units have been entered in the past.

The Days or Hours Paid in each Current or One Off Pay should reflect the actual days or hours worked to enable the software to calculate the correct accrual. When the setup is in Days, the days paid figure will show whole days, so where an employee has worked 2.5 days the days paid should show 3 as they are entitled to accrue for the whole day.

This information is based on employees with unpredictable work patterns. If you are not sure, review Establising Entitlements in the Employment New Zealand Leave and Holidays Guide for more information. MBIE Guide to Holidays and Leave

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.

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