Automatic Leave Accumulation in Payroll

Alasdair MacNeill
Alasdair MacNeill
  • Updated

Overview

Employees who do not work on a fixed schedule can accumulate leave on the hours they work. Accumulated leave is the leave that a non-full time employee amasses over the period of their employment.

Automatic accumulation applies only if you have the Payroll module enabled. If you do not have the Payroll module, leave entitlement for extra hours worked by employees on a fixed part-time schedule, or casual workers, per month, should be manually calculated based on hours worked and added to the relevant employee’s leave entitlement as an adjustment.

Permissions

You need to ensure that you have the 'Manage payroll' permission to access payroll and see the hours which are being added.

Setting up Automatic Leave Accumulation

For hours to be accumulated automatically to a payslip, you need to ensure that the following settings are in place: 

  1. Is Full Time?: the employee's job schedule must not be full time. Therefore, in the Job Schedule, make sure full time is unticked. 
  2. Leave Accumulation Mode: For non-full time employees, you will need to select whether they:
    • Accumulate leave on all basic hours;
    • Accumulate leave on the basic hours that are approved through T&A only (Time & Attendance module required);
    • Accumulate leave on any extra basic hours only. This means that leave is accumulated on any extra basic (non-overtime) hours added to the employee's basic hours over and above the normal basic hours: 
    • Does not accumulate: with this option selected, the employees on this job schedule will not accumulate leave automatically. 

Job Schedule non full time.jpg

Part time employees who are on a fixed job schedule are entitled to a base entitlement of leave which is pro-rated according to their fixed weekly hours and employment duration. Since these employees are not Full Time employees, they also have the option to accumulate leave. In such a case, you may select the leave accumulation on Extra basic hours. This will give the Part Time employees additional leave entitlement for any extra hours they work over and above their normal working hours.


Irregular or Casual employees are also not Full Time employees and so they also have the option to accumulate leave. In these cases, they are also not given a base entitlement of leave as they do not have fixed weekly hours on which the system can calculate a base entitlement. This means that such employees begin their employment with 0 leave entitlement. They will then accumulate leave on the basis selected in the Leave Accumulation mode. 

How are the accumulated hours calculated?

When the payroll has been created and calculated for the employee, you will notice in the middle column a field entitled Accml. "Vacation" at the bottom showing the amount of accumulated leave added through this payslip. It will show the accumulation for all Leave Types that accumulate.

Payslip Accumulation.jpg

 

The calculation for accumulated leave hours is simple:

Calculation

Payslip Basic Hours * (Annual leave entitlement / Full Time employee annual working hours)

The Payslip Basic Hours may be different from one employee to the next as some are paid based on their Job Schedule and some based on Clocked hours.

The accumulated leave will be automatically allocated to the relevant employee’s leave balance when the employee's payslip is locked

To check an individual’s leave balance, go to their profile, click on the Leave tab you will be able to see their Leave Balance pod.

Accumulated Hours.jpg

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