Setting up an ADO to accrue (i.e. 2hrs) when an employee works a certain number of hours in a week (i.e. 40) and is paid a lesser amount (i.e. 38hrs), with the remaining hours (i.e. 2hrs) being banked for the employee to take as paid leave at a later date.
The employee works 40 hours a week, 8 hours per day, and is only paid 38 hours, 7 hours and 36 minutes per day; the remaining 2 hours per week are banked. In the 4th week, the employee only works four days, and the fifth day is taken as a day off, but paid using the banked hours.
This can be achieved by either banking a set amount of hours, i.e., 2.00 hours per pay week, or an accrual rate of .05, which will also be 2 hours per week if the employee works 40 hours.
Create an ADO to accrue automatically
Complete the following steps to set up an Accrued Days Off leave type that will accrue 2 hours per week towards ADO.
Go to Setup, Awards, select an Award, and EDIT.
In the Award, select Leave, Add/Delete Leave, Next, Add new leave type, Next.
Select a Leave Type from the drop-down, i.e., Accrued Days Off, or if there's nothing appropriate available, type a new Leave Type to add to the list.
In Description and Short Description, type ADO. Next, Next, Finish.
In the Award, go to Leave on the left and then select Accrued Days Off, select Edit at the top of the screen.
Change Calculation Type to Per Pay, Rate to 2.00000, OK. This will accrue 2 hrs per pay period regardless of the number of hours the employee has worked.
Creating an Accrued Days Off leave type that will accrue .4 of an hour per day towards ADO:
If you would like to accrue hours per day, i.e., your employee works 8 hours per day and should get paid for 7 hours 36 minutes (7.60hrs), then it is best to change the Calculation Type to Hourly, Rate to .05, OK.
If you are setting up ADO with an Hourly Calculation Type, then on the Accrual screen, the hours used in the accrual calculation should be ticked, i.e., Work Cover is not ticked, which means that any Work Cover hours will not be reduced or used in the calculation.
For both above-mentioned options, the Auto Payments tab has to be modified:
You will need to tick the box Deduct Leave Accrued From Pay. This way, the 2 hours will come off the employee’s pay and accrue in their file toward a day off.