Understand and apply time off tiers to time off policy

Time off tiers allow for increased time off accrual as tenure increases. Employment Hero lets you create time off policies with multiple tiers for entitlement-based or per-pay-run time off, guaranteeing that employees benefit from both standard entitlements and enhanced time off based on their commitment.

 

Example one: standard time off

In this example, we will demonstrate a time off tier incorporating standard time off entitlements. 

An employee is eligible for 5.6 weeks of standard time off. To add this as tier 1, follow the below instructions.

If an employee works a 40hr week, then they are by law, entitled to 224 hours of time off. 

In the red-highlighted field, under Accrual Starts, enter when the accrual will start. If this is entitlement-based time off , then the employee is entitled to their time off entitlements upon commencement of their employment.

Next, under Amount Accrued, add the amount of hours they are entitled to, and how often this replenishes.

Example two: adding extra time off

You may want to reward loyalty in your company for longer tenure, incentivising employees with extra time off entitlements. See this example for how to add another tier to a policy for additional time off.

As an example, in your company, you are going to reward employees with a tenure of 5 years or over with an extra week of time off. If your employees work a standard 40hr week, then they will get an extra 40 hours of time off. 

In the red-highlighted section of Tier 2, under Accrual Starts, add 5 years after the employee's start date.

Under Amount Accrual, add the extra amount of time off in hours (for this example, add 40 hours). Then add the time period when this entitlement replenishes, and the day or date on which it replenishes.

1. Log in to Employment Hero.
2. On the left-hand side navigation menu, click on Settings.
3. Click on Time off Settings.
4. On the time off category to which you want to add tiers, click on the 3 horizontal dots on the right-hand side. 
   
5. Click on Edit (or Add Policy if you have not added a time off policy to this time off category). 
   
6. Add the Time off policy name.
7. Under the Accrual Details subheading, here is where you add the tier information.

8. Under Accrual Starts, add the number, and then the time period in which employees are able to access this time off type.
   

   Helpful Hint

   Accrual starts 0 months after employee start date means that all of the employee's time off entitlements are assigned to them upon commencement of employment. 

9. Under Amount Accrued, add the time off entitlement in hours. 
   
10. Select in which time period the hours are accrued. 
    
11. Select the day or date on which these time off hours are accrued. 
    
12. If you want to add another tier, click on the Add Tier button. 
    
13. Fill in the remaining policy details:
    • Carry over amount
    • Carry over date
    • Forfeiture amount
    • Pro-rata for casual/part-time employees
    • Time off balances for assigned employees
    • Time off balances for unassigned employees.
14. Click on Save. 
15. Next, you will need to assign this policy to your selected employees. You can do this by dragging and dropping the employee from the left-hand side Available column. Click on the employee you wish to assign, then hold the mouse button down to drag the employee's name to the right-hand side Selected column. 
    
16. If you want to assign all of your employees, click on the >> button and this will move all of the employees from the Available column to the Selected column. 
    
17. Click on Save. 
    
18. Next, you will need to review your time off balances. Click on the drop-down menu. 
    
19. Make your selection from the options in the drop-down menu. 
    
20. Click on Save.