Employment Conditions
Employment Conditions are used to control rates of accrual for various leave types, as defined by the governing award. You may customise each leave type completely for your requirements. HR3pay can accrue annual, personal, long service leave, flexitime and RDO as standard.
Any leave which the employee is entitled to take but which does not accrue a balance, such as bereavement leave, can be paid as a leave non-accrual payment. If employees need to accrue an additional leave type over and above Annual, Personal and Long Service Leave, HR3pay has a function called Other Leave Types which allows this (not included in HR3pay Lite).
Opening an Employment Condition File
To open the Employment Conditions file do one of the following:
- From the navigator go to Company | Maintain company details.
- Select Employment Conditions.
The various Employment Conditions that are available for that company will appear. - To view an Employment Condition, double click on the relevant award description.
Creating a New Employment Condition
- In the Employment Conditions file, select the Employment Conditions node on the left, then click Add New on the right.
- Complete the settings for the employment condition. These tabs are available to be defined:
Editing an Employment Condition
- In the Employment Conditions file, select the Employment Condition node on the left, and then select the condition that you want to edit.
- Click on the Edit button on the right.
- Edit the required information.
- Click Apply to save your changes.
Copying an Existing Employment Condition
You may copy an existing Employment Condition in order to create a new, similar Employment Condition.
- In the Employment Conditions file, select the Employment Condition node on the left, and then select the condition that you want to copy.
- Click the More button, then select Copy.
- In the pop-up window type in an appropriate name for the new Employment Condition, then click OK.
- The new Employment Condition name will appear in the Award Description column - edit this if required.
Linking an Employee with an Employment Condition
All employees linked with this condition will accrue leave at the specified rates. You should put employees on separate conditions only if there are significant differences in their conditions, for example:
- One group always accrues personal leave in advance, while another accrues it pro rata.
- One group receives 20 days annual leave per annum, but another receives 25 days.
- One group receives leave loading but another doesn't.
Full-time and part-time employees can usually be placed on the same condition, as long as they accrue leave at the same rate. This is because payroll accrues leave pro rata: i.e. only on the hours the employees are paid.
- Open the employee file using an F3 search.
- Select the Employee name on the left, then click Conditions of employment on the right.
- Select the relevant employment condition from the drop down list.
- Ensure that the employee's leave balances settings have been completed.
- If this employment condition attracts an other leave type, link the employee to that other leave type.
Defining the Details/Standard Working Week
Each employment condition stores a definition of a standard working week, which the system uses to calculate the 'increment per hour' accrual rate for each leave type, and an RDO accrual rate if applicable. To access these details:
- In the Employment Conditions file, select the required condition on the left, then select Details on the right.
- Complete the following information as required:
General Details:
| Field | Explanation |
|---|---|
| Award Description | Enter the description for this employment condition. You can enter up to 35 characters. |
| State | Enter the state this employment condition applies to. |
| Paid Hours per Day | Enter the number of hours paid per day, less any portion banked as RDO. For example, if your employees work an 8 hour day and bank 0.4 hours every day, enter 7.6 (8 - 0.4 = 7.6). |
| Paid Days per Week | Enter the number of days in a standard work week for employees in this employment condition. |
| Worked Hours per Day | Enter the number of hours worked per day. If your employees bank a portion of their day as an RDO, this value is the number of hours actually worked, regardless of any RDO hours banked. |
| Worked Hours per Week | The system will automatically calculate this value based on [days worked per week] x [hours worked per day]. |
| Rostered Day Off Accumulation Rate | This is the hourly rate at which employees
will accumulate RDOs. For example, if your employees bank 0.4 hours in every 8 hour day, enter 0.05 (0.4 / 8 = 0.05).
Any RDO settings mentioned in this document are generic and may not be correct for your company. You should contact the HR3 support team if you wish to accrue RDO in your payroll. |
Leave Restrictions
Some leave reasons have restrictions, where an employee may take a [maximum number of hours] per [defined period of time]. This type of leave reason includes Carer's Leave, Family Leave, Sick no certificate and Bereavement Leave. For the relevant leave reasons, specify the appropriate settings in this section to ensure that a warning is displayed when an employee has exceeded their entitlement.
| Field | Explanation |
|---|---|
| Leave Reason | Select the appropriate Leave Reason from the drop-down list. This list is populated from Leave Reasons in Validation Tables. |
| Maximum Hours | Specify the maximum number of hours that this leave reason can be taken by an employee - linked to Frequency field. |
| = Days | This is the 'Maximum Hours' value converted to number of days automatically (based on the Worked Hours per Day value). |
| Frequency (Per) | Specify the defined period of time over which the maximum number of hours can be taken for this leave reason. |
Defining Annual Leave Accrual Rates
This tab stores settings for accrual of annual leave, including the number of days per year, the hourly incremental accrual rate and leave loading rate, if applicable. To access these details:
- In the Employment Conditions file, select the required condition on the left, then select Annual Leave on the right.
- Complete the following information as required:
| Field | Explanation |
|---|---|
| Days/Year | Enter the total number of annual leave days to be accrued per year. |
| Increment/hour |
The system automatically calculates an increment per hour - this is the accrual rate of annual leave. (Number of weeks leave per year divided by Number of hours worked per year) Example of use: where 40 hours is paid the employee will accrue 40 x increment/hour). payroll always accrues pro rata, so the employee only accrues leave on the hours they are paid. |
| Loading % | If this award receives leave loading, enter the loading % here (normally 17.5%). |
Defining Personal (sick) Leave Accrual Rates
This tab stores settings for personal leave (formerly called sick leave). You can specify a maximum entitlement, or choose to reset balances at the start of each year's accrual. Different accrual rates can be specified for different stages of employment. Personal leave can be accrued on an hourly basis, or a lump sum can be accrued at the start of each year's employment.
To access these details:
- In the Employment Conditions file, select the required condition on the left, then select Personal Leave on the right.
- Complete the following information as required:
| Field | Explanation |
|---|---|
| Max Entitlement Hours | If there is a cap on the number of hours personal leave which can be accrued, enter it here. If no cap applies, set it to 0.00 (default) |
| Accumulate year to year | If your employees accumulate personal leave from year to year, tick this box (default). If this box is not ticked, on the first payrun following each employee's personal leave entitlement date, their personal leave balance will be deleted and begin accruing again from 0 (zero) |
| Years of service | The system looks at each employee's individual accrual date to determine the years of service, then uses the appropriate set of figures. |
| Days/year | Enter the total number of days personal leave accrued per year. |
| In advance | If this box is ticked, the total yearly entitlement (days/year x paid hours per day) will be applied to each employee's file on each anniversary (specifically, in the first payrun with a period end date later than the employee's personal leave entitlement date). |
| Increment per Hour | If In advance is selected, this will automatically set to (0). If In advance is not selected, this value is the accrual rate of personal leave. |
Defining Long Service Leave Accrual Rates
This
tab stores the long service leave entitlement which applies to this award. You can set the number of years in a long service leave cycle, and the total number of weeks to be accrued in that cycle. To access these details:
- In the Employment Conditions file, select the required condition on the left, then select Long Service Leave on the right.
- Complete the following information as required:
| Field | Explanation |
|---|---|
| Long Service - Initial Entitlement | |
| Years to Entitlement | Enter the number of years' service it takes to complete a full long service leave cycle. |
| Entitlement Weeks | Enter the total number of weeks which are accrued during that cycle. |
| Increment per Hour |
Based on the values entered above, the system will calculate an increment per hour. This is the accrual rate for long service leave. Example of use: where an employee is paid 40 hours, long service leave will accrue at 40 x increment/hour. |
| Long Service - Subsequent Entitlement | |
| Years to Entitlement | Enter the number of years' service it takes to complete a subsequent long service leave cycle. |
| Entitlement Weeks | Enter the total number of weeks which are accrued during that cycle. |
| Increment per Hour |
Based on the values entered above, the system will calculate an increment per hour. This is the accrual rate for long service leave. Example of use: where an employee is paid 40 hours, subsequent long service leave will accrue at 40 x increment/hour. |
The HR3pay system will now calculate the employee's Years of Service to determine if the employee is in their Initial period of long service or Subsequent period of long service in order to display the correct long service leave balance in the payrun.
Linking 'Other Leave Types' With Employment Conditions
payroll (not HR3pay Lite) Other leave types allow the system to accrue additional balances over and above Annual, Sick and Long Service Leave. If you have already created an Other Leave Type, you must link it to the required employment condition.
To access these details:
- In the Employment Conditions file, select the required condition on the left, then select the Other Leave Types node on the left.
- Click Add New.
- Complete the following information as required:
| Field | Explanation |
|---|---|
| Other Leave Type | Select an existing Leave Type from the drop-down list or click <<Add New>> to create a new one. |
| Days/Yr | Enter the number of days of this leave type to accrue per year. |
| Increment/hr | The system will automatically calculate this value based on the standard working week defined for this employment condition |
| Loading % | If this leave type attracts leave loading, enter the percentage value here. |
| Qualifiers | |
| Max. Entitlement Hrs | Enter a value only if there is a cap on the number of days employees can accrue. |
| Accumulate Year to year | If this leave type accrues year to year, tick this box. If this box is blank, at each employee anniversary, the leave balance will be deleted and begin accruing again. |
| Dollar Based Accruals | Select this box if this leave type is to accrue in dollars as opposed to hours. |
| Payrun Entitlement Warning Checks Hours | If this is selected the system will check the hours the employee is entitled to accrue and will issue a warning during the payrun if the limit is exceeded. |
| Payrun Entitlement Warning Checks $'s | If this is selected the system will check the dollars the employee is entitled to accrue and will issue a warning if the limit is exceeded. This option is only active if Dollar Based Accruals have been turned on for this leave type. |
| Payrun Entitlement Warning Checks Both | If this is selected the system will check both the dollars and the hours the employee is entitled to accrue and will issue a warning if either limit is exceeded. This option is only active if Dollar Based Accruals have been turned on for this leave type. |