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Leave Type Header

Field

Recommended Setting/Value

Comments

Country

Must be set to Australia.

 

Name

As required.

For reasons of privacy and discretion, it is recommended that the leave type name does not directly identify that the leave type corresponds to PFDVL. For example, it is recommended that you use a generic name such as ‘Discretionary Paid Leave’ or similar.

Absence Type

Must be the absence type that has been created specifically for PFDVL.

 

For more information, see Absence type configuration

 

Paid Leave Type

Must be set to Other Paid Leave (O).

This is required to meet the ATO requirement for reporting payments of the leave type in STP reporting.

Show On Payslip

Must be unticked

Legislation for PFDVL forbids the entitlement balance of the leave from being shown on payslips therefore it is important that this option is toggled off.

Set Accrual

Must be ticked

 

Accrual Type

Must be set to Fixed

 

Apply To Type

Must be set to Days

 

Leave Set

Validity Start Date

Must be set to 01/02/2023

 

Leave Set > Accrual Rule

Calculate At

Service

Since the entitlement to the leave is 10 days per year of service up front, this rule will accrue 10 days of leave if the leave is yet to be accrued during the current service year.

 

The accrual will be triggered via the Leave Service, which runs daily, so the accrual will happen regardless of whether a payee has been paid in a pay batch.

Fixed Value

Must be set to 10

Accrual Type

Must be set to Leave Accrual

Rule Not Applied Before Condition

Period Type must be set to Service Year

Transfer Rule

Transfer Type

Must be set to Increase

Since entitlement to the leave is upfront, this rule will transfer the balance of accrued leave into entitlement immediately.

 

The accrual will be triggered via the Leave Service, which runs daily, so the transfer will happen regardless of whether a payee is paid in a pay batch since last their last accrual.

Calculate At

Must be set to Service

Transfer Immediately

Must be ticked.

Reset Rule

Apply To

Must be set to Entitlement

This rule will reset any accrued entitlement balance at the end of each service year to zero, because the leave entitlement balance must not carry over from one service year to another.

 

The reset of the entitlement balance will be triggered via the Leave Service, which runs daily, so the reset will happen regardless of whether a payee has been paid in a pay batch at the end of a service year.

Rest At

Must be set to Service

Reset On Condition

Must be set to Service Year End

Deduction Rule

Deduction Rule For

Must be set to Leave Taken

Since this leave type can only be paid when taken and cannot be cashed out during service or at termination of employment, the deduction rule must be for Leave Taken.

Payment Leave Day Rounding Rule

Must be set to Hours

 

Entitlement Leave Day Rounding Rule

Must be set to Hours

 

Pay Code

Must be set to the pay code that is to be used to pay the leave.

Note that the name of the pay code will be printed on payslips. Legislation for PFDVL forbids payment of the leave from being distinguishable from other earnings on a payslip so the name of the pay code that is selected must not identify the payment as being related to an absence for PFDVL.

Leave Rate Type

It is recommended to set this to Agreement Rate.

 

For more information, see Payment rate for leave taken.

 

Entitlement Balance Condition > Entitlement Balance Type

It is recommended to set this to Sufficient.

Since the entitlement is 10 paid days a year, this will prevent the leave being paid once a payee has used up the entitlement balance.

Payment rate for leave taken

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