How do I manage a Zero-Hours Contract employee?

Your organisation may have employees who don't work to fixed hour contracts. SMB has the flexibility to allow you to manage ZHC or casual employees in the same way as standard employees.

The first thing you'll need to do is create a ZHC working hour pattern, to tell the system that the employee does not work to scheduled hours. To do this, go to the Administration section and then select "Working Hours". When the list of Working Hour Patterns is shown, click on the "Add New Working Hour Pattern" link at the top of the page to create the new pattern.

Enter a name and description for the pattern, then check the box marked "Is Casual/ZHC" to denote the pattern as Zero Hours Contract. Setup the working hours on the pattern to match your standard full time working hours, enter 100% for the percentage and ensure that the "Include Public Holidays" box is not selected. FInally,click the "Add" button to create the pattern.

Now add your employee and select the ZHC working hour pattern as their working pattern. This will set the employee up to receive the full-time holiday allocation, as shown on their holiday allocation panel.

Once the employee has been added, you can add timesheet entries to their record to store the hours they have worked. The timesheet records are used to calculate the amount of holiday pay a ZHC employee should receive based on the average hours worked over the 12 working weeks leading up to an absence, as well as calculating the total amount of accrued holiday pay the employee receives based on a standard 12.07% calculation of their hours worked.

To add a timesheet entry, navigate to the employee's record, open the large Employee menu at the top of the page and select "Working Hours". From there, click on the "Go To Timesheets" option at the top of the page to view the employee's working schedule. From here you can add and edit timesheet entries as required.

To manage the employee's holiday pay, record absences as you would with any other employee, ensuring that the duration of the holiday matches that of a full-time employee. After entering the start and end date of the absence, click the "Calculate" to calculate the length of the absence as well as the amount of holiday pay that should be paid.

Note: It's important to return to this absence record and recalculate as close to the employee taking the absence as possible, to ensure that the calculation is correct. This calculation is based on the last 12 working weeks leading up to the absence, so if the employee's timesheets aren't up to date, then the calculation may not be accurate.


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