Personal/Carer's leave 10 days (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 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 not using a pre-built Award in your business, you will need to update your leave allowance templates and employee file manually. To read further details on how to update your leave categories when not 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 As such, you should only use this article as a historical reference.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 five 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 five steps are:

Step 1: Determining an employees 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.
    Careers_Leave_2.jpg
Step 2: Zeroing out an employees 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. Click the Pay Run menu.
  2. Click the New Pay Run button.
    Careers_Leave_3.jpg
  3. In the Pay schedule field, select the Ad hoc option.
  4. 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.

  5. Complete the Date Pay Run will be Paid drop-down.
  6. Select the Create Pay Run with Empty Pays tick box.
  7. Click the Create button.
    Careers_Leave_4.jpg

    Important

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

  8. Click on the employee's name who needs their leave zeroed out.
    Careers_Leave_5.jpg
  9. Click the Actions button.
  10. Click the Adjust Leave button.
    Careers_Leave_6.jpg
  11. In the Select Leave Category field, select the Personal/Careers Leave option.
  12. In the Hours field, enter the employee leave balance. 
  13. 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
  14. 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.

    Careers_Leave_8.jpg
  15. Complete the Date Paid drop-down.
  16. Select the Create Pay Event Manually at a Later Date tick box.
  17. Select the Do Not Make Pay Slips Available until the “Publish pay slips” Button is Clicked tick box.
  18. 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.

    Careers_Leave_9.jpg
Step 3: Updating an award classification

To transition your employees from accruing based on hours worked to accruing based on calendar days, you will need to update your employee award classification. Which will enable the new personal career's leave allowance category and template. 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 Manage Awards button.
  5. Click the Actions button.
  6. Click the Apply Updates button.
    Careers_Leave_10.jpg
  7. Select Yes or No to the following questions:
    • Update rules sets.

    Warning

    If you have changed the rule set period from the system default, updating an award will reset the rule set period back to the system default.

    Helpful Hint

    Select yes to this question, if you would like all the default rule sets assigned to this award updated. 

    • Preserve custom rule sets.

    Warning

    Select yes to this question if you want your custom rule sets preserved, if you do not select yes, then the payroll platform will erase your custom rule set data.

    • Preserve disabled rules.

    Warning

    Select yes to this question if you want your disabled rules preserved, if you do not select yes, then the payroll platform will enable the rule sets you had disabled.

    • Update pay rates.

    Helpful Hint

    Select yes to this question, if you want the system to update the pay rates for all employees linked to a pay rate template for this specific award. The system will only update rates that have changed. If you have overridden the rate for an employee linked to the award, these rates will not change, and the system will display a message if this is the case.

    • Re-apply leave allowance templates to linked employees.

    Helpful Hint

    Select yes to this question if you want any leave allowance templates updated as part of this award update.

  8. Click the Install button.
    Careers_Leave_11.jpg
  9. Click the Accept button.
    Careers_Leave_12.jpg

    Helpful Hint

    Once the payroll platform has installed the chosen award and classification, you will see a confirmation screen displayed.

    Careers_Leave_13.jpg
Step 4: Importing the award classification

Warning

Inactive leave categories are still visible to administrators. 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, it requires you to manually import the updated award classification from the payroll platform. The steps on how to undertake this are:

  1. Log into Employment Hero.
  2. Click the Payroll Settings menu.
  3. Click the Classifications submenu.
  4. Click the Update From Payroll button.
    Careers_Leave_14.jpg
Step 5: 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. Click the Pay Run menu.
  2. Click the New Pay Run button.
    Careers_Leave_3.jpg
  3. In the Pay schedule field, select the Ad hoc option. 
  4. 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.

  5. Complete the Date Pay Run will be Paid drop-down.
  6. Select the Create Pay Run with Empty Pays tick box.
  7. Click the Create button.
    Careers_Leave_4.jpg

    Important

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

  8. Click on the employee's name who needs their leave added back in days.
    Careers_Leave_5.jpg
  9. Click the Actions button.
  10. Click the Accrue Leave button.
    Careers_Leave_15.jpg
  11. In the Select Leave Category field, select the Personal/Careers Leave (10 Days) option.
  12. In the Days field, enter the employee leave balance. 
  13. Click the Save button.

    Important

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

    Careers_Leave_16.jpg
  14. 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.

    Careers_Leave_8.jpg
  15. Complete the Date Paid drop-down.
  16. Select the Create Pay Event Manually at a Later Date tick box.
  17. Select the Do Not Make Pay Slips Available until the “Publish pay slips” Button is Clicked tick box.
  18. 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.

    Careers_Leave_9.jpg
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