Personal/Carer's leave 10 days (Non award employees) - Payroll | Guide

How it works

With the recent legislation changes regarding how personal/carer's leave should accrue, we have created this guide for you, that provides detailed instructions on how to update your business settings to follow this change. The below article relates specifically to updating the existing personal/carer's leave category from accruing based on hours worked to accruing based on calendar days.

Important

If you are using a pre-built Award in your business, there will be an award update to install that will include the updated leave category settings. To read further details on how to update your leave categories when using an award, refer to the following guide.

On the 13th of August 2020, the High Court handed down a decision regarding the method of accruing personal/carer’s leave under the National Employment Standards. The High Court found that the entitlement to 10 days of personal/carer’s leave should calculate based on an employee’s hours of work, not days, and should calculate as 1/26th of an employee's ordinary hours of work in a year.

The High Court’s decision overturns the previous decision made by the Full Federal Court in August 2019. As such, you should only use this article as a historical reference. Employers should not be referring to this article to set up personal/carer's leave for their employees.

Availability

Payroll Plan:   Standard   Premium

What you need to do

There are six steps that an administrator needs to complete, to enable personal/carer's leave to accrue based on calendar days. An administrator needs to complete these actions on both the Employment Hero HR and Payroll platforms. The six steps are:

Step 1: Determine the current leave balances

To convert your employees' leave balances from hours to days, you need to undertake an audit of your employees' personal/carer's leave balances.

Helpful Hint

It is best to take this from their commencement date to make sure they are not worse off, and as a result, you may need to make some adjustments to the hours they have accrued.

Important

The accrual rate for employees entitled to ten days of personal/careers leave is:

  • Non leap year: 0.02739726 days per calendar day or part day of service.
  • Leap year: 0.0273224 days per calendar day or part day of service.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Reports menu.
  3. Click the Leave Balances button.
    Careers_Leave_1.jpg
  4. Complete the following fields:
    • As at field.

    Important

    Enter the date of your last play run into this field.

    • Group by.
    • Employee default location.
    • Leave type.
    • Employing entity.
  5. Click the Excel button.
    Carers_Leave_2.jpg
Step 2: Zero out personal/carer's leave balance

To transition your employees from accruing based on hours worked to accruing based on calendar days, you will need to zero out their current personal/carer's leave balances. 

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    Carers_Leave_3.jpg
  4. In the Pay schedule field, select the Ad hoc option.
  5. Set the pay period ending date to one day after your last pay period ending date.

    Helpful Hint

    If your last pay run had a period end date of 2/1/20, the period end date for this adhoc pay run should be 3/1/20.

  6. Complete the Date Pay Run will be Paid drop-down.
  7. Select the Create Pay Run with Empty Pays tick box.
  8. Click the Create button.
    Carers_Leave_4.jpg

    Important

    To read further information on how to add an employee to a pay run, refer to the following article.

  9. Click on the employee's name who needs their leave zeroed out.
    Carers_Leave_5.jpg
  10. Click the Actions button.
  11. Click the Adjust Leave button.
    Carers_Leave_6.jpg
  12. In the Select Leave Category field, select the Personal/Careers Leave option.
  13. In the Hours field, enter the employee leave balance. 
  14. Click the Save button.

    Important

    Repeat the steps 8 to 13 for each employee you have added to the pay run.

    Carers_Leave_7.jpg
  15. Click the Finalise button.

    Important

    Before finalising the pay run, you can check you have successfully zeroed your employee leave balances by clicking the Leave Balances button. To read further details on this feature refer to the following article.

    Carers_Leave_8.jpg
  16. Complete the Date Paid drop-down.
  17. Select the Create Pay Event Manually at a Later Date tick box.
  18. Select the Do Not Make Pay Slips Available until the “Publish pay slips” Button is Clicked tick box.
  19. Click the Finalise button.

    Important

    Make sure you do not publish these pay slips for this pay run, as this is merely a leave adjustment. The employees leave balance in the HR platform will update automatically to the latest leave balance once you process their next payment in the payroll platform.

    Should you wish to publish the payslip so you capture the leave adjustment immediately, remember to advise your employees that this payslip is not payment of wages, and would only include the information on the leave adjustments made nothing further.

    Carers_Leave_9.jpg
Step 3: Create the leave allowance template.

Important

The reason we suggest creating a new Leave Allowance Template as opposed to updating an existing one is:

  • There may be employees in the business that will continue to accrue leave on a per hour worked basis; i.e. they may not be subject to this legalisation change.
  • To keep accurate historic records of previous leave taken.

The next step is to create a new leave allowance template that has the old personal careers leave category set to inactive and the new personal careers leave (10 days) set to active.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Business Settings menu.
  3. Click the Payroll Settings submenu.
  4. Click the Leave Allowance Templates button.
  5. Click the Copy button next the employees existing Leave Allowance Template.
    Carers_Leave_10.jpg
  6. In the Template Name field, enter the following name Personal/Carer's Leave (10 days).
  7. In the Enabled Leave Categories section, turn on the Personal/Carer's Leave (10 days) option.

    Important

    Make sure you mark the old Personal/Carer's Leave category as inactive.

  8. Click the Save button.
    Carers_Leave_11.jpg
Step 4: Importing the leave category

Warning

Inactive leave categories are still visible to administrators within the HR platform. Since the HR platform is the source of truth for information such as company settings, payroll settings, and employee file data; it will require you to re-synchronise your platforms to import the new leave categories. The steps on how to undertake this are:

  1. Click the Payroll Settings menu.
  2. Click the Leave Categories submenu.
  3. Click the Update From Payroll button.
    Carers_Leave_12.jpg

    Helpful Hint

    The Leave Categories page will now show a green Updated button and means the HR platform has successfully imported your leave categories from the payroll platform.

    Carers_Leave_18.jpg
Step 5: Importing the leave allowance template

Since the HR platform is the source of truth for information such as company settings, payroll settings, and employee file data; it will require you to re-synchronise your platforms to import the new leave allowance template from the payroll platform. The steps on how to undertake this are:

  1. Click the Payroll Settings menu.
  2. Click the Leave Allowance Templates submenu.
  3. Click the Update From Payroll button.
    Carers_Leave_13.jpg

    Helpful Hint

    The Leave Allowance Templates page will now show a green Updated button and means the HR platform has successfully imported your leave allowance templates from the payroll platform.

    Carers_Leave_19.jpg
Step 6: Applying the leave allowance template

The HR platform is the source of truth for your company settings, payroll settings, and employee file data. For you to apply the new leave allowance template to your employees, you will need to update your employees pay details. Once you have updated their details, the HR platform will automatically synchronise the changes with the payroll platform. The steps on how to undertake this are:

  1. Log into Employment Hero.
  2. Click on the Personnel menu.
  3. Click on the Employees submenu.
  4. Click the Employee Name, that needs a leave allowance template updated.
  5. Click the Pay Details button.
  6. Click the Salary History tab.
  7. Click the Action button.
  8. Click the Edit button.
    Carers_Leave_14.jpg
  9. In the Leave Allowance Template drop-down, select the template created in step 3.
  10. Select a change reason from the Change Reason drop-down.
  11. Click the Save button.
    Carers_Leave_17.jpg
Step 7: Reapply personal/career's leave balance

To complete the transition of your employees from accruing based on hours worked to accruing based on calendar days, you will need to reapply their current personal/carer's leave balances. The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    Carers_Leave_3.jpg
  4. In the Pay schedule field, select the Ad hoc option. 
  5. Set the pay period ending date to one day after your last pay period ending date.

    Helpful Hint

    If your last pay run had a period end date of 2/1/20, the period end date for this adhoc pay run should be 3/1/20.

  6. Complete the Date Pay Run will be Paid drop-down.
  7. Select the Create Pay Run with Empty Pays tick box.
  8. Click the Create button.
    Carers_Leave_4.jpg

    Important

    To read further information on how to add an employee to a pay run, refer to the following article.

  9. Click on the employee's name who needs their leave added back in as days..
    Carers_Leave_5.jpg
  10. Click the Actions button.
  11. Click the Accrue Leave button.
    Carers_Leave_15.jpg
  12. In the Select Leave Category field, select the Personal/Careers Leave (10 Days) option.
  13. In the Days field, enter the employee leave balance. 
  14. Click the Save button.

    Important

    Repeat steps 8 to 13 for each employee you have added to the pay run.

    Carers_Leave_16.jpg
  15. Click the Finalise button.

    Important

    Before finalising the pay run, you can check you have successfully reapplied your employee's leave balances by clicking the Leave Balances button. To read further details on this feature refer to the following article.

    Carers_Leave_8.jpg
  16. Complete the Date Paid drop-down.
  17. Select the Create Pay Event Manually at a Later Date tick box.
  18. Select the Do Not Make Pay Slips Available until the “Publish pay slips” Button is Clicked tick box.
  19. Click the Finalise button.

    Important

    Make sure you do not publish these pay slips for this pay run, as this is merely a leave adjustment. The employees leave balance on the HR platform will update automatically to the latest leave balance once you process their next payment on the payroll platform.

    Should you wish to publish the payslip so you capture the leave adjustment immediately, remember to advise your employees that this payslip is not payment of wages, and would only include the information on the leave adjustments made nothing further.

    Carers_Leave_9.jpg
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