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Creating Entitlement Policies

Once you have all the leave types on the system that you need (such as annual leave, study leave, and sick leave), you will need to create entitlement policies that set the number of days of that leave type employees are entitled to. You can then assign these entitlement policies to the company as a whole or to individuals. This means that if you have some individuals on 16 days annual leave and others on 20 days annual leave, you will need to create 2 entitlement policies.

This can be done by going to Settings > Leave > View (next to the leave type) > Create Entitlement Policy. The following information can be entered:

Custom name

Tick the Use custom name? box 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 17 worked” in the case of leave accrual based on hours worked (discussed below).

Use hours worked

If you tick the Use hours worked for accrual (casual staff) box, 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 it has been agreed that they earn 1 hour of leave for every 17 hours worked, you should enter 17 in the One hour of leave for every _ hours worked field.

Applicability of hours worked feature

The use hours worked feature should be assigned only to hourly-paid employees. A fixed salaried employee will not accrue leave when assigned to an entitlement policy with the use hours worked feature enabled.

Paid leave contributes to hours worked for accrual?

You'll notice some differences regarding this checkbox:

  • Annual leave: The checkbox is ticked by default and greyed out. This is because employees continue to accrue annual leave while on annual leave.
  • Other leave types: You can decide whether to check the box. Leaving it unchecked means that employees will not accrue more of this leave type while they are taking this type of leave.

Example - Box unchecked

Let's say you leave the box unchecked while creating an entitlement policy for sick leave. This means that employees on this entitlement policy won't be accruing more sick leave while they are taking sick leave.

Fixed entitlement

If you do not tick the Use hours worked for accrual (casual staff) box, the following options will remain visible:

  • Default entitlement _ days: Enter the number of days to which the employees are entitled per cycle.
  • Entitlement only available after _ months: If the entitlement will become available only after a certain period of the employee working for the company, you can set that by entering the number of months in this field. Please note that the number of months entered here must be less than the cycle length for this leave type.
  • Use upfront accrual?: Tick this box if employees receive all their leave days at the beginning of the leave cycle. If employees earn leave as they work, leave this unchecked.

Leave expiry

Regardless of how the entitlement is determined, you can tick the Allow leave to be carried forward to next cycle? box 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 expires 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 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:

  • 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. You must enter a number from 1 – 100.
  • 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. You must enter a number from 1 – 100.
  • 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.

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 Use hours worked for accrual (casual staff) box has not been ticked.

For example, in a situation where the company default is 15 days, but employees are entitled to only 10 days for their first two cycles, you would create a rule with the following values:

First cycle Last cycle Entitlement
1 2 10