3 Calculating leave correctly


3 Calculating leave correctly

Topic Progress:

3 Calculating leave correctly

What information do you need?

  • Track sick leave hours monthly
  • Track Sick Leave as a % of productive hours
  • Track annual leave and ADO liability by month.

Annual leave

  • How much annual leave should you have?

Only 6 weeks per person per annum. Calculate how many hours this is.

For example, you have 15 EFT – multiply this by 6 weeks and divide by 38 to give you hours.  This is the maximum hours AL liability you should have each month.

If you have an excess of this number take the difference number (ie should have 5000 hours but have 7000).

2000 hours divided by 38 = 52 (EFT).  Develop a plan to reduce your AL liability by dividing this number by the number of fortnights in 12 months.  In this example it would be 2 EFT of staff on AL each fortnight in addition to  the 2 EFT that need to be off each week.

At this point you need to discuss the management strategy with your boss (CEO/ED) because there are implications whichever way you go.  If you have an additional 2 EFT off you will need to cover this somehow.  Do you recruit additional staff for 12 months?  How imperative is this for your organization?

Casual hours utilized

  • Does this match the sick leave?  If it exceeds the sick leave you probably have the staffing profile wrong.

Agency hours

Check the average hours worked by each staff member against their contracted hours – do you have some staff picking up additional hours consistently?

Change their contracts to reflect actual hours worked.


Not recently active