1. Barbara Houlbrooke Payroll & HRIS Consultant
Changing Work Patterns & holidays Act Compliance

2. 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?

3. 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

4. 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?

5. 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

6. 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

7. Group
Work Arrangement
Annual Leave Method
BAPS Method
On-going Review 1
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. 2
Salary with regular variable extra hours or extra payments
4 Week OWP/AWE
RDP or ADP depending if rate for a day is known.
Monitor to ensure variation processed for extra hours so the Hours/Days per Week changes to maintain 4 weeks entitlement, review extra payments. 3
Waged with regular hours and extra irregular payments
RDP
Monitor hours and extra payments 4
Waged with variable hours and/or variable payments
ADP
Monitor for changes 5
Fixed Term less than 12 months
8% PAYG or paid on termination.
Or 4 weeks entitlement then OWP/AWE or 4 Week OWP/AWE
Monitor if fixed term is more than 12 months. Could accrue AL and allow days taken with 8% paid on termination. 6
Casuals
8% PAYG
RDP. Need to pay the hours that would have been paid if worked on that day.
Monitor if hours increase or regular and over 12 months employment, and meets 6 months sick leave criteria

8. 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

9. Houlbrooke Group Limited
Barbara can help you with:
compliance reviews
payroll audits
solution selections
implementation services
business process improvement and change