Common use of Explanation of 46.7 Percent Formula Clause in Contracts

Explanation of 46.7 Percent Formula. Fifty-six (56) hour per week employees will now earn sick leave at the rate of twenty-four (24) hours per month, rather than eight (8) hours per month, and their sick leave balances will be increased by a factor of three (3) on January 1, 1986. Employees will be charged for sick leave used on an hour for hour basis. The 46.7 percent formula is used in order to preserve the past relationship between hours earned and taken. The 46.7 percent formula has the same net effect as increasing earnings and threshold amounts by a factor of 1.4 and charging hours taken on a one for 3 basis. 1.4 ÷ 3 = 46.7 percent (1.4 is the relationship between 2080 hours and 2912 hours).

Explanation of 46.7 Percent Formula. Fifty-six (56) hour per week employees will now earn sick leave at the rate of twenty-four (24) hours per month, rather than eight (8) hours per month, and their sick leave balances will be increased by a factor of three (3) on January 1, 1986. Employees will be charged for sick leave used on an hour for hour basis. The 46.7 percent formula is used in order to preserve the past relationship between hours earned and taken. The 46.7 percent formula has the same net effect as increasing earnings and threshold amounts by a factor of 1.4 and charging hours taken on a one for 3 basis. 1.4 ÷ 3 = 46.7 percent (1.4 is the relationship between 2080 hours and 2912 hours).