How to set up Long Service Leave accrual for unpaid leave on HeroPay?

Effectively from 1st November 2018 for employees in Victoria, certain breaks will now count towards accrual of long service leave, e.g. unpaid parental leave of up to 52 weeks, or longer in certain circumstances.

With this change, you can set up Long Service Leave accrual for employees on unpaid leave, including unpaid parental leave on HeroPay, in three different ways.

 

Option 1. Assign employee to a new leave allowance template

a) Create a new leave allowance template for the employee on unpaid parental leave under Payroll Settings/ Leave Allowance Templates

Only Long Service Leave should have an accrual rate and all other leave categories's accrual should be zero in the new template. You can set Unit Type as hours per pay run and input the accrual employee should receive for each pay run based on employee's standard hour, e.g. in below screenshot is accrual rate for an employee with 38 standard working hours per pay run. 

b) Assign leave allowance template to employee

Note: If you have both HR and Payroll platform, follow instruction in this this link to bring newly created leave allowance template from Payroll to HR, and then you can assign the new leave allowance template for the employee. Refer to here for more instruction on assigning leave allowance to employee on HR platform. 

Once this is actioned, whenever employee is included in a payrun, employee will have fixed LSL accrual as set in leave allowance template.

c) Once the employee joins back work from the unpaid leave they would need to be linked to their previous leave allowance template (both in the payroll and HR platforms).

Option 2. Leave employee on current leave allowance template, manual adjustment of leave accrual is required 

a) Create a new Pay category for the unpaid parental leave. Ensure the Accrues Leave tickbox is ticked.

b) A leave category for the leave needs to be created and the pay category created in the above step would need to be linked to this leave.

c) Employee then can apply for above type of leave

Note: If you have both HR and Payroll platform, follow instruction in this this link to bring newly created leave category from Payroll to HR, and then employee can apply for the leave. We currently allow a leave request with 90 days period and we have a feature request under review to remove this restriction. In the interim, employees will need to submit their leave request in batches if their leave extends beyond 90 days.

Once employee is included in pay run, there will be earning line for unpaid leave with zero gross amount. Employee then will have accrual for Annual leave, Personal leave and Long service leave. Payroll administrator would need to delete the annual and personal leave accrual and leave Long service leave accrual as it is.

Option 3. Leave employee on current leave allowance template, one off manual adjustment of leave accrual is required 

a) Create leave category for Parental leave

Since the leave is unpaid, below is the option you can choose when creating the leave category

  • Employee leave balance - Not Tracked
  • Payment Set up - Don't pay for the leave taken

b) Employee then can apply for above type of leave

Note: If you have both HR and Payroll platform, follow instruction in this this link to bring newly created leave category from Payroll to HR, and then employee can apply for the leave. We currently allow a leave request with 90 days period and we have a feature request under review to remove this restriction. In the interim, employees will need to submit their leave request in batches if their leave extends beyond 90 days.

Once employee is included in pay run, there will be no leave accrual at all. 

c) Once employee is back to work, the payroll administrator can calculate long service leave employee should have accrued during unpaid leave period and add this accrual for the employee while processing a pay run by selecting the Accrue leave option in the Actions tab from within a pay run.

 

 

 

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