Configuring a Fixed Period Accrual

Leave Type Header

Create a new leave type. A new absence type will need to be created to add to the leave type.

Under Accrual Setting, check on the Set Accrual flag. This will display an Accrual tab.

Leave Set - Accrual Rule

In the Accrual Tab, the Accrual Type should be set as Fixed.

For the Apply to Type, this could either be set to Hours or Days.

If Hours is chosen, this means that you will need to have different leave accrual rules for payees who work part time, otherwise they would accrue too much.

If Days is chosen, the accrual rate would be the same as they still accrue the same amount each week. However, when the accrual amount is displayed, this will be in decimal day form and may need further explanation to payees as to what is shown.

A new flag called Pro Rata Accrual is available. If this is selected, this will pro-rate payee’s fixed accrual if they start or terminate mid period.

Add an Accrual Rule for the leave set and give the accrual rule a name and apply the rounding type settings as required.

For the Calculate At setting, the options are Pay Batch or Service.

If Pay Batch is chosen, this means that the fixed accrual will only be applied to payees who are included in a pay batch. Therefore, if they did not work, and were excluded from a pay batch for the period, the system would not accrue.

If following the rules of the Harpur Trust vs Brazel are to be applied, payees are entitled to accrue even when they do not work.

If you wanted to keep this setting as Pay Batch and you wanted payees to accrue even if they did not work, you would need to include those payees in a pay batch.

If Service is chosen, this means that the fixed accrual will automatically be applied to all active payees who are linked with this leave type once a week irrespective of whether they have worked or not.

Enter the fixed accrual rate in Fixed Value. An example of what this would be is dependent on how much leave you are accruing in the year and whether the accrual is based on days or hours. Here are some examples:

Assuming the payee is entitled to 5.6 weeks per year:

• If accruing in weeks (the Apply to Type would still be Days), the value would be: 5.6 / 52 = 0.10769.

• If accruing in days, it would be 28 (equivalent of 5.6 weeks) / 52 = 0.53846. Note, this value would need to be different if a part time payee, if they do not work full time.

• If accruing in hours, you would need to define how many hours as standard a payee works. Assuming a payee works 40 hours per week, 40 * 5.6 = 224 / 52 = 4.30769.

If you have selected the Calculate At as Service, the Condition Rule Not Applied Before Condition becomes visible. This is needed to define at what point the accrual should be applied. If this rule is not applied, and the service is run each day to capture new payees, the payees would accrue each time the service is run.

Select the option Pay Period.

Deduction Rule

There are no changes to this section but it is important to understand how this sections configuration determines how the entitlement is reduced and the unit used for the payment of holiday.

The Entitlement Leave Day Rounding Rule defines how the payee’s entitlement should be reduced. This selects the rounding rule from the Day Round Rules configuration screen.

This rounding rule is dependent on how you configure the accrual rate. For example (using the values expressed in Step 10), if a payee took 2 days of leave

If accruing in weeks, the entitlement would need to be reduced by: 0.10769 / 7 * 2 = 0.030769

If accruing in days, the reduction would be 0.53846 / 7 * 2 = 0.153846.

If accruing in hours, the reduction would be based on the exact hours the payee requested.

In the Day Round Rules, when a rule is added apply the following:

The Type would be Day.

Define how many hours a half day is e.g. 3.50 or 4.00 and enter in Half Day Cap.

You then need to configure the half day and full day values would be. For example:

Accruing in Weeks:

Half Day Value - 0.10769 / 7 / 2 = 0.007692

Full Day Value - 0.10769 / 7 = 0.015384

Accruing in Days

Half Day Value - 0.153846 / 7 / 2 = 0.010989

Full Day Value - 0.153846 / 7 = 0.021978

The Payment Leave Day Rounding Rule defines the unit for the payment. This can be different to the Entitlement Leave Day Rounding Rule as payees could be paid by the hour and yet the accrual deduction could be a part week which is why there are separate deduction rules to consider this. Therefore, this rule is going to be dependent on how the payee is paid.

If the payee is paid hourly, then the Day Round Rules would be based on the Type of Hours. See the first screenshot.

If the payee is paid by units of days

The Type would be Day.

Enter the number of hours that define a half day into the Half Day Cap.

Enter the Half Day Value, which would be 0.50 for a half day.

Enter the Full Day Value, which would be 1 for a full day.