Guide: Personal/Carer's leave hours worked (Non award employees)

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 article relates specifically to updating the existing personal/carer's leave category from accruing based on calendar days to accruing based on hours worked.

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 hours worked. An administrator needs to complete these actions on both the HR and payroll platforms. The six steps are:

Step 1: Determine the current leave balances

To convert your employees' leave balances from days to hours worked, you need to undertake an audit of your employees'personal/carers leave 10 days balance.

Important

The hourly accrual method reflects the decision of the High Court of Australia, which overturned the previous decision made by the FCAFC and clarified that personal/carer's leave calculates as 1/26th of an employee’s ordinary hours of work.

The steps on how to undertake this are:

  1. Log into the Employment Hero Payroll platform.
  2. Click the Reports menu.
  3. Click the Leave Balances button.
    Carers_Leave_1.jpg
  4. In the Leave Type field select the Personal Careers ten days option.
  5. Complete the following fields:
    • As at field.

    Important

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

    • Group by.
    • Employee default location.
    • Employing entity.
  6. 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 calendar days to accruing based on hours worked, you will need to zero out their current personal/carer's ten days leave balance. 

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 10 Days option.
  13. In the Days 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

    Ensure 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 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 calender days 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 carers leave 10 days category set to inactive and the new personal cares leave 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 to the employees existing Leave Allowance Template.
    Carers_Leave_10.jpg
  6. In the Template Name field, enter the following name Personal/Carer's Leave.
  7. In the Enabled Leave Categories section, turn on the Personal/Carer's Leave option.

    Important

    Ensure you mark the old Personal/Carer's Leave 10 Days 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.

    Helpful Hint

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

     

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. Log into Employment Hero.
  2. Click the Payroll Settings menu.
  3. Click the Leave Allowance Template submenu.
  4. Click the Update From Payroll button.
    Carers_leave_13.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. In order for you to apply the new leave allowance template to your employees, you will need to update your employees pay details. Once you have update 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's Name, who 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 calender days to accruing based on hours worked, 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 option.
  13. In the Hours 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

    Ensure 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 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
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