An employee has joined the company during the month and another has left. You know these missing days have to be deducted from their pay, yes but how?
👉 To calculate the arrival/departure, we look at the number of hours the employee should have worked over the entire pay period and compare it to the number of hours actually worked. The difference between the two gives the value to deduct from the pay.
👉 Let's illustrate the calculation with an example: Julian starts his 35h contract from Wednesday 10th. The pay period is from Monday 1st to Wednesday 31st of the month.
1️⃣ We calculate the number of hours to be theoretically achieved :
For full weeks (weeks included in the pay period; including Sunday, regardless of the employee's contract dates):
👉 Weekly contract time is multiplied by the number of full weeks.
For partial weeks (weeks straddling 2 pay periods, regardless of employee's contract dates):
👉 The weekly contract time is divided by 7 and multiplied by the number of days included in the pay period on that week.
For Julian, the first 4 weeks (W1 to W4) are full weeks in the pay period:
✏️ 35h * 4 weeks = 140h
The last week (W5) is incomplete because the 31st is a Wednesday. The week is therefore straddling 2 pay periods. We will only have 3 days included in the current pay period:
✏️ (35h / 7 days) * 3 days = 15h
By adding the 2 values, we find the time theoretically worked by Julian if he had been present during the whole pay period:
✏️ 140h + 15h = 155h
2️⃣ We calculate the number of hours really worked by the employee :
For full weeks (weeks included in the pay period and in the employee's contract; including Sunday):
👉 Weekly contract time is multiplied by the number of full weeks. Potential overtime will show up in another column of the report.
For incomplete weeks (weeks that straddle two pay periods or weeks in which the employee enters or leaves during the week):
👉 We add up all the information from the schedule on the days taken into account in our calculation, without exceeding the weekly contract time: working hours, absences, vacations.
For Julian, we take:
W1 : the employee's contract has not started
W2 : incomplete week because he entered on Wednesday 10th, during the week. We add up the information of his schedule:
✏️ 7h on Wednesday + 5h on Thursday + 8h on Friday = 20h
W3 and W4 : full weeks. We take the weekly contract time of the employee:
✏️ 35h * 2 weeks = 70h
W5 : incomplete week because the 31st is a Wednesday. We add up the information from the schedule:
✏️ 7h worked on Monday + 7h of absence on Tuesday +7h worked on Wednesday = 21h
By adding the values, we find the number of worked hours over the pay period by Julian:
✏️ 20h + 70h + 21h = 111h
3️⃣ We calculate the difference between the theoretical hours and the realized hours, the value of arrival/departure to be deducted from his pay:
We calculate the difference between the theoretical time and the realized time.
✏️ 155h theoretical - 111h realized = 44h
44 hours are to be deducted from the pay.
Easy, isn't it? If you have any doubt about the calculation, we are of course available to help you via our online chat (small bubble at the bottom right of the page) !