In the following example I will be referring to an employee that is based on a 38hr contract fulltime and accrues LSL for an entitlement of 8.66wks over 10yrs. If you have casual or part time employees, the accrual rate can be set up to accrue on selected hours worked.
Accruals:
On this tab I have used the 2 most popular methods of accrual:
Yearly is for the employees to accrue 32.93333 hours per year; this equates to 32.93333 x 10 yrs = 329.3333hrs / 38hrs = 8.6666 wks
Hourly is for the employees to accrue on selected hours of work; this is usually the method for employees that have fluctuating hours.
The accrual rate is 0.01667 per hours worked, x 38hrs = 0.63346 x 52wks = 32.93992 x 10 yrs = 329.3992hrs / 38hrs = 8.6666 wks
Note: With an hourly accrual rate, you will also need to complete the bottom section of the Accrual tab, Accrue Leave On (Applies to Hourly Accruals Only) this section needs to be ticked for the hours that you need to have leave accrued on.
Days Employed | Calculation Method | Accrual Rate |
Any days greater than 0 | Block |
|
Any days greater than 0 | Hourly | 0.01667 |
Any days greater than 0 | Year | 32.93333 |
Any days greater than 0 | Per Pay |
|
Any days greater than 0 | Days |
|
Any days greater than 0 | Months |
|
Accrual Conditions:
Under this tab things that need to be considered are:
How you want to see the display of leave in the employees leave record, use the drop down on Create additional accrual records: and select what is required. Do you want to see 1 line with an entitlement or multiple lines for each anniversary or award change?
The bottom 3 tick box options need to be considered and kept in line with your current Awards or EBA's
Entitlement:
Under this tab I have selected Number of Units: 10 Units: Years and Calculated from: Employment Commencement Date
These fields would differ if creating Annual Leave or Sick Leave.
Depending on your Awards or EBA's you may need to tick the bottom box, Leave Without Pay doesn't break the continuity of service for this leaves entitlement period.
Payments:
Under this tab, you are able to tick on and off different requirements that keep in line with Awards and Company policies, some also relate only to Sick Leave and Annual Leave. The main one that would be ticked is: Payments can be edited at Wages Processing
In the majority of set up for leave payments you would leave the Payment Calculation as the default, Use Standard Pay Rates
Auto Payments:
With Auto payments you will need to read each section to ascertain if it is applicable, each box has an explanation.
Other:
This tab is another important one, it is used for calculating superannuation and also the tax treatment for terminations, please read this tab.
Parent:
Not usually used for LSL
Children:
Not usually used for LSL
Description:
This is the description that is shown in WageEasy and the payslip, this can be changed but not advisable.
STP Reporting:
STP reporting groups are built into the system and need to be correct for STP reporting.
LSL Reporting Group: is Paid Leave,
Reporting Supgroup: is Other Paid Leave
The above examples are not specific to any State or Territory Legislation.
To work out an hourly accrual rate: here are some examples.
Example 1:
Start with the number of weeks and years for the full entitlement, in this example I will use 13 weeks for 15 years = 494 hrs (based on a 38 hour week)
Divide the full number of hours by the years, 494 hrs / 15 yrs = 32.9333 hrs per year
Divide the hours per year by 52 (weeks in a year) 32.9333 / 52 = 0.6333 hrs per week
Divide the hours per week by 38 (contract hours per week) .6333 / 38 = 0.01666
Example 2:
Start with the number of weeks and years for the full entitlement, in this example I will use 13 weeks for 10 years = 494 hrs (based on a 38 hour week)
Divide the full number of hours by the years, 494 hrs / 10 yrs = 49.4000 hrs per year
Divide the hours per year by 52 (weeks in a year) 49.4000 / 52 = 0.9500 hrs per week
Divide the hours per week by 38 (contract hours per week) 0.9500 / 38 = 0.025
Note: The hours of work in a contract week do not change the accrual rate, it is the number of weeks of leave that you are entitled to.