1. Click the Settings menu.
2. Click the Time off Settings submenu.
3. Click the Add leave Type button.
4. Complete the following fields:
   
   • Leave Type Name 
     
     • E.G Annual leave Standard
   • Leave Balance Tracking 
     • Select Track balance accruals and leave taken if you want to add a policy to your leave type. A policy determines the balance and rules that should be assigned to the leave type. 
       • If track balance accruals and leave taken is selected, the leave type in Payroll classic automatically becomes an Entitlement Based leave type.
     • Select Only track leave taken if you do not wish to track a balance against this leave type.
       • If only track leave taken is selected, the leave type in Payroll classic automatically becomes a Standard leave type.
     • Unit Type
     • Select Days if your employees take their leave in days
     • Select Hours if your employees take their leave in hours
     • Select whether a Return to work is required for this leave type
   • Apply leave rounding rules
     • Click Yes to apply your own leave rounding rules. These can be changed on the Advanced Settings tab.
5.  Click the Save button.

Once you have clicked Save, you will be taken to the Add leave Policy screen. Here you can add the policy that is associated with the leave type. To add a leave policy complete the following details: 

1. 1. Leave Policy Name.
   2. Accrual Details:
      • Accrual Starts: This sets when an employee will start to accrue this type of leave. You can input a number and then choose:
        • Months
        • Years
      • Amount Accrued: This sets how often an employee accrues this type of leave. You can input a number of days and select how often they accrue this. You can input a number, then choose:
        
        • Yearly
        • Monthly
        • Semi-monthly
        • Bi-weekly
        • Weekly
      • You may also be prompted to fill in what date these accruals should start.
   3. (Optional) Click the + Add Tier button and complete the fields. (Do this if you award an additional balance to your employees based on length of service.)
   4. On the Carry Over Amount field, click the drop-down button and select either None, Unlimited or up to X number of days.
   5. On the Carry Over Date field, use the drop-down buttons to select the day and the month (Your holiday calendar year will default here) 
   6. Pro Rata for Part Time/Casual Employees (Select this option if you want your part-time workers to receive a prorated amount of leave.)
   7. Leave Balances rules.
      • Leave balances for assigned employees.
        • Select Do not apply leave balance to employees on assignment if you want to manually assign balances to your new employees
        • Select Apply full balance amount on employee assignment if your employees should receive the full amount of leave assigned to this policy
        • Select Apply a pro rata amount on employee assignment if you want your employees to receive a pro rated leave entitlement based on their start date in the current holiday calendar year (Note: the calculation is based on calendar days in a year) 
      • Leave balances for unassigned employees.
        • Keep current balance.
        • Remove current entitlement.
        • Set current leave balance to zero.
   8. Click the Save button.
   9. You will now be taken to the Manage Assignments page.
   10. To assign the policy to certain employees, drag their name from the Available column to the Selected column.

       Helpful Hint

       You can click the >> button to move all employees to the Selected column.
       You can click the << button to move all employees to the Available column.
       You can click the reset button to move all employees back to their original column.

   11. Click the Save button.
       The review page allows you to compare each affected employee's current balance and new balance side by side. This is helpful in ensuring the changes are accurate and as expected.
   12. Use the dropdown menu to select how balances will be applied to the assigned employees. Your choices include:
       • Do not apply Leave balances to employees on assignment.
       • Apply full balance amount on employee assignment.
       • Apply a pro-rata from the employee's start date or a selected effective date. If choosing an effective date, a calendar will appear for selection.
   13. Once you have reviewed the changes and the new balances, click Save.
       
       
       

1. Click the   Settings menu.
2. Under Payroll classic Settings, click the leave Settings submenu.
3. Click the  button.
4. Click the Add Policy button.
   
5. Complete the following fields:
   • Leave Policy Name.
   • Accrual Details:
     • Accrual Starts: This sets when an employee will start to accrue this type of leave. You can input a number and then choose:
       • Months
       • Years
     • Amount Accrued: This sets how often an employee accrues this type of leave. You can input a number of days and select how often they accrue this. You can input a number, then choose:
       
       • Yearly
       • Monthly
       • Semi-monthly
       • Bi-weekly
       • Weekly
     • You may also be prompted to fill in what date these accruals should start.
       
       • Carry Over Amount.
       • Carry Over Date.
       • Pro Rata for Part Time/Casual Employees.
       • Leave balances for assigned employees.
       • Leave balances for unassigned employees.
6. Click the Save button.
7. To assign the policy to certain employees, drag their name from the Available column to the Selected column.

   Helpful Hint

   You can click the >> button to move all employees to the Selected column.
   You can click the << button to move all employees to the Available column.
   You can click the reset button to move all employees back to their original column.

8. Click the Save button.
   The review page allows you to compare each affected employee's current balance and new balance side by side. This is helpful in ensuring the changes are accurate and as expected.
9. Use the dropdown menu to select how balances will be applied to the employees listed.
10. Once you have reviewed the changes and the new balances, click Save.
    
    
    

1. Log into your Employment Hero Payroll classic platform.
2. Click the  Business Settings menu.
3. Click the Payroll classic Settings submenu.
4. Click leave Categories button.
5. Select the leave category
6. Complete the following Payment setup fields:
   • Basic - By selecting ‘basic’ it means that when an employee does not use timesheets, the employees leave balance will be reduced and the earnings are not impacted. If the employee does not submit timesheets for all time worked, their balance will be reduced. 
   • Do not pay for the leave taken - When an employee does not use timesheets, an earnings line with negative hours will be added within the pay run to reduce the earnings for the employee. When an employee is using timesheets to submit all time worked, no earnings line will be created.
   • Report the earnings for the leave taken against another pay category - When wanting to report payments for leave taken in a separate pay category, for reporting or journaling purposes, select this option. The earnings related to the leave taken will be assigned against the specified pay category instead of the employee's primary pay category. When this is selected, you’ll be  given the option to use the rate of pay from the employee's primary pay category and you can click on the drop down box to choose which pay category you would like, including the primary pay category. Please note that by ticking this box, the system assumes that you still want the employee to be paid their usual rate of pay. 
   • Custom - This option allows the user to deduct hours from an arbitrary pay category and transfer them to another arbitrary pay category when leave is taken. You can see the drop down boxes here, you can choose from the pay categories within the system. 
7. Click the Save button.
   

1. Click the   Settings menu.
2. Under Payroll classic Settings, click the leave Settings submenu.
3. Find the Policy you want to assign or unassign employees from, then click the Actions button.
4. Click Manage assignment.
   
5. To assign the policy to certain employees, drag their name from the Available column to the Selected column.

   Helpful Hint

   You can click the >> button to move all employees to the Selected column.
   You can click the << button to move all employees to the Available column.
   You can click the reset button to move all employees back to their original column.

6. Click the Save button.
   The review page allows you to compare each affected employee's current balance and new balance side by side. This is helpful in ensuring the changes are accurate and as expected.
7. Use the dropdown menu to select how balances will be applied to the employees listed.
8. Once you have reviewed the changes and the new balances, click Save.
   
   
   

   Helpful Hint

   If you need to make further changes to employees, click the Back button to return to the previous screen.

Scenario 1: Assigning an employee to a new leave policy

If an employee is not currently assigned to any leave policy in a category:

1. Select the employee.

2. Choose the appropriate leave policy.

3. The employee’s leave entitlement will be applied based on the selected policy’s accrual rules.

4. Save the changes.

The employee will now start accruing leave according to the new policy.

Scenario 2: Assigning an Employee who Is already assigned to another policy

If an employee is already assigned to a leave policy within the same category and is reassigned to a different policy:

1. Select the employee.

2. Assign them to the new leave policy.

3. The system will automatically unassign them from their previous policy in the same category.

4. Their entitlement will be recalculated based on the rules of the new policy.

5. Save the changes.

Example:

Emma is currently assigned to the Standard Annual Leave Policy, which grants 20 days of annual leave per year. The company introduces a new Extended Annual Leave Policy, offering 25 days. If Emma is assigned to the new policy, she will:

1. Be automatically unassigned from the Standard Annual Leave Policy according to the policy's unassignment rule but can be changed in the assign management page.

2. Have her entitlement recalculated according to the rules of the Extended Annual Leave Policy. This can also be changed in the assign management page.

3. Receive the new leave balance as per the policy’s accrual rules.

This automatic reallocation ensures that employees do not accumulate conflicting entitlements within the same leave category.

If an employee is unassigned from a leave policy and not reassigned to another, they will no longer accrue leave under that category.

Example:

James has been assigned to the Parental Leave Policy, which provides 10 weeks of paid leave. If his assignment is removed:

1. He will no longer accrue leave under the Parental Leave Policy.

2. Their entitlement will be recalculated based on the un-assignment rules of the policy.

3. If required, he can be reassigned to another leave policy with different rules and entitlements.

This ensures that employees only receive leave benefits they are eligible for and prevents any overlap in entitlements.

Let’s say Luke is an employee who started last year, and you want to assign him to a new leave policy starting from 1st July. The full annual entitlement for this policy is 20 days, but because Luke is only eligible from 1st July to 31st December, his entitlement is prorated to 10 days.

Later, on 1st October, you decide to move Luke to a different leave policy within the same category. To ensure he only receives the correct entitlement for the time he was on each policy:

Unassigning Luke from the old policy – You set the effective date as 1st October, so his leave balance is adjusted to reflect only 5 days earned from July to October.
Assigning Luke to the new policy – You select an effective date of 1st October, ensuring he only receives 10 days (a quarter of the new policy’s 40-day annual entitlement).
This way, Luke’s total leave across both policies is accurately prorated to reflect his time in each, preventing over- or under-entitlement.

To maintain accurate leave records and avoid discrepancies, entitlement-based leave policies cannot be deleted if any employees are still assigned to them. Before deleting an entitlement-based leave policy, all employees must be unassigned. If you attempt to delete an entitlement-based leave policy, you will receive a notification prompting you to first remove all assigned employees. Once all employees are unassigned, the leave policy can be deleted from the system.

The following leave types and their corresponding payment set-up will be created by default: 

• Statutory sick leave.
• Statutory maternity leave.
• Statutory adoption leave.
• Statutory paternity leave.
• Statutory Parental bereavement leave.

The following leave types will be auto-created by default but the payment set-up must be completed by you:

• Annual leave 
• Sick leave 

No, changing the rules in the assign management page will not update the rules in the leave policy setting.