This article is for businesses created before 3rd October 2019.
As you would be aware, employees are entitled to Sick Leave (SL) and Domestic Violence Leave (DVL) six months after their employment start date. Additionally, the entitlement continues every 12 months thereafter - to be clear, it is 12 months beginning at the end of the 6 month period, NOT from employee's start date.
Default Leave Categories
You can read more detailed information on leave categories here. By default, each business will have system created leave categories configured for both SL and DVL:
Domestic Violence Leave
A few notes on the setup of both SL and DVL are as follows:
- Automatically accrues based on the employee's leave year: This setting allows you to define when the employee's leave year (for this leave category) will commence, as opposed to assuming that leave will commence accruing from the employee's start date. This setting is essential for SL and DVL because the entitlement falls after 6 months of continuous employment. How this is set up on a per employee basis is described further below.
- Standard Allowance = 0 Standard Days per year: We have specifically kept the entitlement allowance at 0 so that employees do not start accruing leave accidentally if a leave allowance template has not been assigned to the employee. We provide actual entitlement amounts for these leave categories within the system default leave allowance templates.
- Accrue in advance: This setting is ticked because the employee is entitled to the full amount of SL (ie 5 days) and DVL (ie 10 days) when the entitlement period kicks in.
- Accruals for this leave category are limited to a maximum of: This setting has been applied to cap the amount of leave that the employee can accrue in a year. For SL, this is 5 days (or 40 hours) and DVL is 10 days (or 80 hours).
- Carry over a maximum of: This setting has been applied to cap the amount of unused leave that carries over to the next entitlement period. For SL, this is 15 days (or 120 hours) and DVL is 0 days (or 0 hours).
Setting up SL and DVL entitlements for employees
We always recommend using leave allowance templates to manage the leave entitlements for employees. The crucial step here as well when setting up an employee's SL and DVL entitlement is to ensure the employee's leave year start date is recorded correctly - the correct date is 6 months after the employee's start date.
There are various ways of setting up leave entitlements to apply automatically against an employee:
- When first adding an employee to the system. Instructions on how this is done via the employee wizard can be found here. Specifically, refer to Step 3.
- Updating or adding a leave allowance template from within the employee's file. To do this, access the employee's Leave Allowances screen.
The first setting allows you to choose the leave allowance template you want to assign to the employee. In the above example, the employee was initially on the "First 6 mths of employment" template and now, because their 6 months have passed, they need to move on to the "Thereafter" leave allowance template. (The "Thereafter" leave allowance template includes entitlements to SL and DVL whereas the the "First 6 mths of employment" template does not). Select the correct leave allowance template and then click on "Save". The entitlements attached to this template will then start applying from the employee's next pay run. Another setting to take note of here is the 'leave year start date' - as stated previously, this date should be 6 months after the employee's start date. So, using the above example, the employee started on 6/7/15 and so the leave year start date has been recorded as 6/1/16.
- Using the pay run warnings as a notification from within the pay run. This process is explained further below in the Pay Run Warnings section.
Pay Run Warnings
Within a pay run, you will notice at times a "Warnings" tab appear with a list of warnings pertaining to that pay run.
One warning of relevance here is the "Employee has reached their first six months of employment".
This warning is useful as it will identify to the payroll administrator which employees need their leave allowance template updated from "First 6 mths of employment" to "Thereafter". As stated above, it is important this setting is applied to employees correctly so that their SL and DVL entitlements are recorded correctly.
Once the pay run is finalised, you should then go to the specified employees' file (specifically, the Leave Allowances screen) and update the leave allowance template from "First 6 mths of employment" to "Thereafter". A shortcut method of accessing the employee's file from within the pay run is to click on the pencil icon located to the right of the employee's name in the pay run:
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