In the past SmoothPay would "un-fix" a fixed salary back to variable salary (same as waged) whenever a leave entry occurred due to the requirements of the Holidays Act to pay annual leave at "best weekly rate" and potential average daily pay required for daily leave types. The result was that an employee could earn more for a week of leave than they might for a normal week of salary.
However, this caused a lot of unnecessary brain strangulation - so it's been resolved as follows:
- Normal fixed-salary will prevail as long as the employee has work hours (as well as any leave entries).
- Leave entries are preserved for the method selected when the entry is added (we'd recommend consuming leave in hours for consistency to make it easier to balance up the work hours)
A few curious things to be aware of:
- An employee with no work entries (pure leave) will be paid whatever the leave entries produce - regardless of salary.
- If the employee has a mix of leave and work entries then the work value will be the difference between the salary and the leave total value (and the rate may be negative if it's necessary to reduce the total pay to the nominal salary value - which is why we recommend consuming leave in hours)