Please note that this guide is an extension of the Rule Set Overview article.This article details the settings and options available for the accrual and payment of leave within the system.
This article contains the following items
- Leave (Accrual & Payment)
- Statutory Annual Leave
- Additional Annual Leave
- Special Annual Leave
- Personal Leave
- Time in Lieu
- Rostered Day Off (RDO)
- Long Service Leave
Leave (Accrual & Payment)
Leave rules are divided into leave accrual values and leave payments. Employee balances for leave accrual may be viewed from the Leave tab in the employee setup. Payments for leave are defined in leave (Setup) and paid automatically as each payroll is processed.
ACCRUAL OF LEAVE
Enter a value (in hours) that reflects the standard full-time working week. This value establishes the basis for pro-rata calculations rather than indicating how many hours are actually worked.
Add deferred hours to accrual:
Timesheet can be deferred (using special rates) to a future pay period, the accrual of the Annual Leave, Personal Leave, time-in-lieu, RDO leave and long service leave includes the deferred hours in the calculation of the leave during the pay period it is moved to.
PAYMENT OF LEAVE
When an employee is paid leave the default method configured in the Rule Set will be applied.
Two options are available when setting this value
- User selects: The number of hours paid for each leave day will be determined at payroll by the Administrator. Use this booking method to approve leave immediately and defer the calculation of leave hours for a later time. The shift Start, End, Break, and Total Hours are left blank, forcing the Administrator to enter them at the point of Payroll.
- Ordinary week: The number of hours paid for each leave day will be determined based on the Working Weeks defined on the employee's profile (Employee Setup, Working Hours tab). Use this leave method when an employee has not worked for a sufficient period of time to establish correct averaging data.
LEAVE LOADING
Leave loading is an option to grant an additional payment to employees, whilst they are on annual leave.
Pay Leave Loading
If this is enabled leave loading will be included if applicable to the payroll.
Loading Calculated On:
This determines the calculational method to determine the leave loading value. The options for this include:
- Ordinary work hours:
Pays leave loading on normal hours - Ordinary work hours + penalties:
Pays leave loading on normal hours and penalty hours - Ordinary work hours + penalties (Weekends only):
Pays leave loading on normal hours and the penalty hours of the weekends - Pay higher of LL (Leave Loading) on Ord. (Ordinary) hours or LL of penalties:
Pays which amount is higher. The leave loading on normal hours or the amount of the penalties. - Pay higher of LL (Leave Loading) on Ord. (Ordinary) hours or Payment of penalties:
Pays which amount is higher. The leave loading on normal hours or the amount of the weekend penalties.
Loading Value
This reflects the percentage value of the leave loading to be applied.
Statutory Annual Leave
The following section details how to set up statutory annual leave (SAL) in the ClockOn system.
ACCRUAL OF STATUTORY ANNUAL LEAVE
To enable SAL or to make any changes to this screen, you must first ensure that the Accrue statutory annual leave checkbox is enabled.
The Options button provides some additional items to consider.
- Include Overtime in Accrual:
This determines whether overtime hours worked should be included in the calculation of accrual for annual leave hours. - Include workers compensation:
Enable this field to allow the employee to accrue of Statutory Annual leave for Worker's Compensation leave timesheets. - Pro Rata Down:
The Pro Rata Down check box determines whether or not per-payroll statutory annual leave accrual is decreased on an "as worked" basis, i.e. when the employee works less than the full-time week. - Pro Rata Up:
The Pro Rata Up check box determines whether or not per-payroll statutory annual leave accrual is increased on an "as worked" basis, i.e. when the employee works more than the full-time week.
Cap Total Accrual Balance:
This feature allows the user to enter the capping value (hours) where a limit on the number of accrued hours of leave applies.
Annual Leave Accrual Brackets
Using the Add button you can include the rules as to the accrual rate for the leave. Below is a basic example;
To calculate the amount of accrual that the employee should have in this field use the following
Full-time working week hours x weeks to accrue in a year = months accrues value
The example above is for an employee working 38 hours per week with a yearly accrual of 4 weeks of SAL.
38 x 4 = 152
A typical configuration for a part-time employee is:
TYPE | Avg of Hours | Pro-Rata Down | Pro-Rata Up | Full-Time Week | Calculation | Accrual/wk |
Part-Time | 32 | Yes | No | 38 | 32/38 * (152/52) | 2.46 hours |
A typical configuration for a full-time employee is:
TYPE | Avg of Hours | Pro-Rata Down | Pro-Rata Up | Full-Time Week | Calculation | Accrual/wk |
FullTime | 38 | No | No | 38 | 38/38 * (152/52) | 2.92 hours |
PAYMENT OF STATUTORY ANNUAL LEAVE
This section details the options for how to treat the payment of SAL. Use the Options button as shown below to expand this list.
- Include Penalties
Allows for the inclusion of penalties for the employee if they would have ordinarily applied for the employee if they worked that time. - Include Cumulative Overtime
is enabled as the default, instructing the system to include/exclude these hours (overtime) in the aggregate payment of leave. Common cumulative conditions include Over a Number of Hours per Week and Over a Number of Hours per Shift. - When Include in RDO Accrual
If enabled, annual leave entries will be considered worked times and will contribute to the RDO accrual. - Adjust for full year at termination
On the employee's termination, the system will adjust the hours of annual leave to be paid out. The amount adjusted is based on an exact twelve-month calendar year rather than an optional fifty-two-week calendar year. - Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for annual leave by default. This can be manually overridden within the termination wizard.
Additional Annual Leave
Enable Accrue Additional Annual Leave (AAL) where an employee is entitled to accrue additional leave for working seven-day rosters or working on Sundays or public holidays, where the days worked are not part of an ordinary week:
One instance where this can be useful is to pay an additional 1 week of annual leave to employees considered as shift workers.
Additional annual leave works by counting the instances of Sundays and Public Holidays within an employee's calendar year to determine whether they are eligible for the additional entitlement.
In the above example if the employee exceeds 20 individual shift occurrences they will be granted an additional 38 hours of annual leave entitlement.
You can also tick the option to Include Saturdays in this count if required.
NOTE: The additional annual leave works of the employees calendar year not the financial year, and the count will reset at the point of the employees employment anniversary.
You also have the option to accrue the AAL as traditional statutory annual leave instead by enabling the Accrue AAL as additional SAL. if this is enabled the shift count is ignored and the accrual is based on the payroll period as per the standard SAL setup. Also, the items in the Options button will be available for use.
- Include Overtime in Accrual:
This determines whether overtime hours worked are used as part of the calculation of the accrual of leave hours. - Include workers compensation:
Enable this field to include the accrue of Statutory Annual leave while for Worker's Compensation leave time sheets. - Pro Rata Down:
The Pro Rata Down check box determines whether or not per-payroll statutory annual leave accrual is decreased on an "as worked" basis, i.e. when the employee works less than the full-time week. - Pro Rata Up:
The Pro Rata Up check box determines whether or not per-payroll statutory annual leave accrual is increased on an "as worked" basis, i.e. when the employee works more than the full-time week. - Include in LL accrual:
With this enabled the amounts will be considered when calculating leave loading.
PAYMENT OF ADDITIONAL ANNUAL LEAVE
- Include Penalties
If this is enabled the system will pay penalties for the time set as leave if the employee would have normally received the penalty for the time worked.
- Include Cumulative Overtime (Enabled as the default)
If this is enabled the system will include these hours in the cumulative calculation for overtime, treating it as if the employee worked those hours.
- Include in RDO Accrual
If this is enabled, additional annual leave entries will be considered worked times and will contribute to the RDO accrual.
- Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for annual leave by default. This can be manually overridden within the termination wizard.
If this is enabled the system will pay penalties for the time set as leave if the employee would have normally received the penalty for the time worked.
If this is enabled the system will include these hours in the cumulative calculation for overtime, treating it as if the employee worked those hours.
If this is enabled, additional annual leave entries will be considered worked times and will contribute to the RDO accrual.
If enabled the ClockOn termination wizard will have the payout option for annual leave by default. This can be manually overridden within the termination wizard.
Special Annual Leave
Enable the Accrue Special Annual Leave check box. Special annual leave allows you to have a pre-set percentage to pay for worked public holidays with an additional flat leave accrual for hours for the day.
ACCRUAL OF SPECIAL ANNUAL LEAVE
The Options button within this section provides the following:
- Pro Rata Down
Used to incrementally reduce the accrual of special annual leave based on the day's worked hours in instances where the employee doesn't complete the full workday. - Pro Rata Up
Allows the system to incrementally accrue an additional amount of annual leave in instances where the employee works longer than the standard working hours for the day/period.
Capping Value (hours)
Allows you to set a limit for the accrual of hours of leave that the employees can have.
PAYMENT OF SPECIAL ANNUAL LEAVE
- Include cumulative overtime (Enabled as the default)
If this is enabled the system will include these hours in the cumulative calculation for overtime, treating it as if the employee worked those hours. - Include in RDO Accrual
If enabled, special annual leave entries will be considered worked times and will contribute to the RDO accrual. - Pay with penalties
If this is enabled the system will pay penalties for the time set as leave if the employee would have normally received the penalty for the time if it was worked. - Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for special annual leave by default. This can be manually overridden within the termination wizard.
Special Pub. Hol Rate
Allows you to set a custom used to determine the hourly rate that an employee will be paid if the special annual leave timesheet leave type is used at payroll for Sunday or public holiday shifts.
The Special Pub. Hol. Entitlement (hours)
If set this field determines how many hours of special annual leave will be accrued for working on Sundays and public holidays.
Personal Leave
The personal leave accrual and payout options can be configured using this section of the rule set.
Personal leave is also known as Sick and carers leave.
ACCRUAL OF PERSONAL LEAVE
The Options button provides the configuration of the following settings
- Accrue at Anniversary Only:
Select this when personal leave entitlements are not accrued on a per-payroll basis but rather on each anniversary of employment. Typically, an entitlement value for the first year is entered in manually via the employee file. - Include Overtime in Accrual:
If enabled, overtime costings will contribute to the Personal leave accrual. - Include workers compensation:
If enabled, personal leave will accrue while an employee is on worker's compensation leave. - Pro Rata Down:
If enabled this will determine whether or not per-payroll personal leave accrual is decreased on an "as worked" basis, i.e. when the employee works less than the full-time week. - Pro Rata Up:
If enabled this will determine whether or not per-payroll personal leave accrual is increased on an "As worked" basis, i.e. when the employee works more than the full-time week.
If you have part time employees that do not work the full working week, then the Pro Rata down option may be preferable as it will limit the leave accrual to hours worked within the period rather than the full period.
Capping Value (Hours):
Personal leave entitlements may be capped to a maximum number of hours. The value entered in this field represents the maximum personal leave entitlement an employee may accrue. A value of zero indicates that the field is disabled and personal leave accrual is unlimited.
The Add button allows you to add the breakdown brackets for the accrual, the following is an example of an employee that is set to work a 38 per week, with an entitlement of 2 weeks per year.
To calculate the amount of accrual that the employee should have in this field use the following
Full-time working week hours x weeks to accrue in a year = months accrues value
The example above is for an employee working 38 hours per week with a yearly accrual of 2 weeks of Personal Leave.
38 x 2 = 76
PAYMENT OF PERSONAL LEAVE
The following options are available for the payment of personal leave.
- Include Penalties
If enabled the system will include penalties for time sheets that are set over a standard penalty period. - Include Cumulative Overtime (Enabled as the default)
If this is enabled the system will include these hours in the cumulative calculation for overtime, treating it as if the employee worked those hours. - Include in RDO Accrual
If enabled the personal leave entries will be considered worked times and will contribute to the RDO accrual. - Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for personal leave by default. This can be manually overridden within the termination wizard.
Time in Lieu
Time in lieu (also referred to as TIL or TOIL) is a method of exchanging overtime payments for an additional leave accrual.
As previously stated Time in Lieu replaces overtime in the system when enabled, however, it does this by using the overtime rules in the system to determine when to accrue.
There are two options that you can use when accruing TIL.
- 1-1 hours only
This option will ignore the overtime rate sheets set up in the system and treat each hour over overtime paid as a single hour of TIL accrual. - Overtime hours
This option will use the overtime rate sheets to determine the accrual, for example, if the employee did 1 hour of overtime and they were due to get 150% for that time as overtime, they would instead receive an TIL accrual of 1.5 hours.
As they are simply delayed hours Time in Lieu entries are still treated as normal time when working out the overtime rules within a period. As such it is possible to have a payroll that contains both Time in lieu taken as well as accrued if an overtime condition is meet, for example if the employee works over 38 hours in a period.
PAYMENT OF TIME IN LIEU
Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for personal leave by default. This can be manually overridden within the termination wizard.
Rostered Day Off (RDO)
The rostered day off (RDO) leave category allows for the condition where an employee may agree to work additional hours per week and in return bank an accrual of leave so they can take a day off once enough is accrued.
There are several different ways that you can operate the accrual, the options for the accrual of RDOs are:
- Days (hours per Day):
This option will auto-accrue a set number of hours for each day worked within the period. - Days (over x hours):
This option will accrue a set number of hours if the employee works over a set number of hours in a day. - Shift (% of hours):
This option will use a percentage of the shift hours worked for the RDO accrual. - Week:
Using this option will accrue RDO when the employee works to the hours worked limit on the rule
When the accrual type of Week is selected, the option to allocate when earned or allocate to the lowest rate will be available.
- Allocate when earned:
This option will set the costings to accrue as RDO once the employee is eligible for it, for example using the example above when they are between their 38-40 hour interval. - Allocate to lowest rate:
This option will scan over the costings and ensure that the RDO costings are based on the lowest payable rate (usually normal hours) to ensure the employee does not miss out on additional payments.
For employees that use overtime and penalties the Allocate to lowest rat option is recommended as if the employee is also entitled to cumulative overtime, they may miss out on the overtime benefits if it set to allocate when earned.
Accrual breakdown
The following breakdown details a "per week breakdown whereby the employee will accrue 2 hours of RDO if they work 40 hours in a week, it also specifies that the employee accrues this for any time worked within the week.
In this example, the RDO will kick in once the employee has worked 38 hours and treat the following 2 as RDO.
PAYMENT OF RDO
Include Penalties
If enabled the system will include penalties for time sheets that are set over a standard penalty period.
Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for personal leave by default. This can be manually overridden within the termination wizard.
Long Service Leave
This section allows you to configure the accrual and payment options for long service leave.
ACCRUAL OF LONG SERVICE LEAVE
The values entered in the Employee Will Accrue and Years Worked fields are expressed as a ratio. Long service leave accrual begins from the employment commencement date.
In the above example of 13 weeks for every 15 years worked the system will use the following calculation for a weekly period.
13/15 = 0.86666666 weeks per year = 0.86666666 / 52 = 0.01666666 weeks accrued per week paid.
Becomes a Liability At:
Indicates to the reporting when the LSL costs should be considered as an accounting liability to the business.
Employee is Eligible At:
Indicates the required number of years of service the employee must have worked in order to be eligible to use the long service leave entitlement.
Using the Options button you can show the following additional choices.
Accrue leave in hours:
When enabled long service leave will be accrued in hours.
Please note that when accruing LSL in hours, the Pro-Rata Down option will be enabled to ensure an accurate accrual is recorded at payroll based on the number of hours workedThe system will use the following calculation is multiplied by the hours worked in the period to get the correct accrual.
Calculation:
For an employee working 38 hours: 0.01666666 (weeks) * 38 hours worked = 0.63333333 hours LSL accrual.
For an employee working 19 hours: 0.01666666 (weeks) * 19 hours worked = 0.31666666 hours LSL accrual.
NOTE: The actual payroll screen will always show accruals in weeks only (even if you have the ‘hourly LSL accrual’ set ). DON’T PANIC as The hourly LSL accrual is calculated at the same time and shown on the employee's detail screen as their running balance (after processing the pay)IMPORTANT NOTE: If you decide to convert a system that was previously using we standard weeks accrual for LSL to instead use the accrual in hours option, you will need to manually calculate the new LSL balances and enter them into the employee's profile directly.
Include workers compensation:
Becomes enabled only when long service leave is accrued in hours. hours. When enabled, long service leave will accrue while an employee is on worker's compensation leave.
PAYMENT OF LONG SERVICE LEAVE
Using the Options button you can show the following additional choices.
Pay on Termination
If enabled the ClockOn termination wizard will have the payout option for long service leave by default. This can be manually overridden within the termination wizard.
Pay with Penalties:
If enabled the system will include penalties for time sheets that are set over a standard penalty period.