Ask the ExpertLayoff Using Reduced Work Week Hours of 32 hours or 40 hours?
hri_Admin Staff asked 5 years ago

Our company has been on a reduced work week at 32 hours / week for over a year now. We are now starting into Layoffs and doing calculations I am inquiring if I use 32 hours / week for their Termination Notice and for Severance pay. (The employment contracts have been revised via letters to each employee stating reducing to 32 hours). Thanks, I appreciate your speedy response back, Erin

1 Answers
Glenn Demby Staff answered 5 years ago

Administrator

A week’s pay is calculated by:

– Totalling the employee’s wages, excluding overtime, earned in the last eight weeks in which the employee worked normal or average hours; and
– Dividing the total by eight.

As such, you would then calculate based on 32 hours.