The leave system will allow you to add custom leave types as well as edit default leave types. You will be able to customise the leave cycle length, when it starts, as well as whether it should be displayed on the payslip or not. Editing entitlement policies will also be possible as the system will let you set the number of days that employees are entitled to, as well as whether all the leave will be available upfront; it will even allow you to set entitlement based on employees’ length of employment – i.e. if they only qualify for a leave type, or additional entitlement, after being employed for a certain amount of time.
The system leave types are set up in order to comply with the relevant labour laws.
To view the various leave types in your company, go to Settings > Leave. You will then be able to view and edit the leave by clicking View next to the leave type.
Editing Leave Details
The details of a particular leave type can be edited as follows:
- Go to Settings > Leave.
- Click View next to a leave type to display that particular leave type’s details.
- Click Edit Details to make changes to that particular type of leave.
- The Name of the leave type can be changed, if desired; however, it is not recommended.
- The Cycle length can be changed, if desired. We generally do not recommend making changes to the Cycle length unless it will result in a more favourable outcome for the employees.
- Select the Cycle start date. If “Custom” is selected, then the Custom date also needs to be entered.
- By default all new and existing leave types will have “Everyone” selected next to Visible for. If you would like to hide this leave type from those who do not have a recent, current or future entitlement, click the dropdown and select “Employees with a recent, current or future entitlement.”
- Click on the box next to Unpaid leave in order to classify the leave as such.
- Click on the box next to Show on payslips to set whether or not the particular leave type should be displayed on the payslip.
- Click on the box next to Set minimum balance rule if you would like to prevent employees going into a negative balance or put a limit on this.
- You’ll then be able to set a Minimum balance. For example, if employees may not go into negative, the minimum would be 0.
- You have the option to allow certain users to override the rule and approve leave anyway. You can do this by selecting the relevant user types from the Allow rule override drop down.
- If this is set to “Not Allowed” and an employee tries to make a request taking them below the limit, they will be shown an error message and prevented from submitting the request.
- If the override is allowed, the employee will see a warning message but be able to continue with the request. The allowed user can then approve the request if appropriate.
Click the box next to Hide balances in self-service? if you would like to prevent leave balances to be viewable in self-service for this leave type. Employees will still be able to submit leave requests.
Note: If you have the Set minimum balance rule set up, the balance will still show in the error message if the leave request exceeds the balance set. The balance will also continue to show on the payslips until that is disabled separately as discussed in the Show on Payslips section above.
- When you are satisfied with the way that the leave type is set up, remember to click Save.
Company-Wide Entitlement Policies
The following process should be followed to edit the entitlement policies of a leave type:
- After clicking View next to a leave type, click Create Entitlement Policy.
- Click Use custom name? if required, and then enter the Custom name. If a custom name is not used, the system will use the number of leave days as the name in the case of a fixed entitlement, or it will use a name such as “1 hour per 25 worked” in the case of leave accrual based on hours worked (discussed below).
- You will now have the option to set up the way in which employees’ leave entitlement will be determined – either based on the number of hours worked or a fixed number of days per leave cycle. More information is available below.*
- Next, regardless of how the entitlement is determined, you can tick the box next to Allow leave to be carried forward to next cycle? if you want that option to be available to employees. If you tick the box, you will have the option to complete the field Leave carried forward after _ months. This will make any leave that is carried forward to the new cycle expire if it is not taken within the number of months entered. Additionally, you will also have the option to select the Limit type. This will limit the number of leave days that can be carried forward to the next cycle. The following options are available for the Limit type:
- “No Limit”: all unused leave days will be carried forward to the next cycle.
- “Percentage of balance”: the maximum number of leave days that can be carried forward to the next leave cycle will be calculated as the specified % of the employee’s leave balance.
- “Percentage of entitlement”: the maximum number of leave days that can be carried forward to the next leave cycle will be calculated as the specified % of the employee’s leave entitlement.
- “Fixed number of days”: the maximum number of leave days that can be carried forward to the next cycle will be a specified number of days
- Finalise the changes to the entitlement policy by clicking Save.
*The options mentioned in step 3 above are explained in more detail in the following two sections:
Leave Accrual Based on Hours Worked
If you tick the box next to Use hours worked for accrual (casual staff), you will have the option to enter the number of hours an employee should work in order to earn one hour of leave.
- For example, if an employee’s leave entitlement is equal to 8% of their hours worked, you should enter 12.5 next to One hour of leave for every _ hours worked. The 12.5 is calculated as 1 / 8%.
Leave Accrual Based on Fixed Entitlement
If you do not tick the box next to Use hours worked for accrual (casual staff), the following options will remain visible:
- Next to Default entitlement, enter the number of days to which the employees are entitled.
- If the entitlement will only become available after a certain period, you can set that by entering the number of months next to Entitlement only available after.
- You will also be able to set whether the leave entitlement is allocated upfront by clicking on the box next to Use upfront accrual?
Once you have created company-wide entitlement policies, you can activate them for specific employees. More information can be found in the following section:
Cycle-Specific Rules (Advanced)
You can configure these for cases where an employee’s entitlement is determined by their current leave cycle (i.e. they do not necessarily get the default entered above) and where the box next to Use hours worked for accrual (casual staff) has not been ticked.
For example, in a situation where the company default is 15 days, but employees are only entitled to 10 days for their first two cycles, you would create a rule with the following values:
|First cycle||Last cycle||Entitlement|
Custom Leave Types
For more information on how to create custom leave types, please refer to:
Active Entitlement Policies (company defaults)
Once you have created all the required entitlement policies, you will need to set the effective dates of these policies to ensure that they are active for the relevant employees for the appropriate periods.
More information about how to set active entitlement policies can be found in the following section: