Leave Entitlements

foundU

March 07, 2025 05:19

Manage your employees' leave entitlements

Manage your leave rules and take control of your leave entitlements! Once set up, you can apply any leave entitlement to your employees individually, or so they automatically apply to profiles when adding positions to new employees.

Common examples of leave entitlements that you can build into your platform are:

Annual Leave
Personal Leave
Compassionate Leave
Community Service Leave (e.g. Jury Duty or Voluntary emergency management activities)
Paid Parental Leave
Long Service Leave
Bereavement Leave
Leave without Pay (LWOP) - Unpaid leave

Depending on the entitlement set-up, leave entitlements can be applied to all existing employees, with options available to update the values and settings in bulk or individually.

Please note: Family and Domestic Violence leave is managed through a separate process. Please refer here for additional information.

In this article, we will cover:

Creating a new entitlement or editing an existing one
How to change the STP category of an entitlement for a financial year
Various ways to apply leave entitlements to employees
Making updates to entitlement values
Reporting leave entitlement values
FAQs

Some settings affect the way Leave behaves across your whole platform. You can read about these settings and what they do here.

Manage Entitlements

Create a new leave entitlement

When managing leave entitlements, the first step is to create the leave entitlement and establish the rules for how the entitlement will accrue, be calculated and managed by the employee.

You need to determine the accrual rate, what hours the leave type will accrue, and whether it is reportable, among other variables.

Once a leave entitlement type is set up, it can be applied to your employees to commence accruing.

To set up a new leave entitlement:

Navigate to the main menu and select Payroll Settings > Leave Configuration.
Select Add New.
Configure your new leave entitlement with the following fields:
- Entitlement Settings
  - Title - The title will be displayed everywhere the entitlement is visible. This includes payslips & within the employee app.
  - Paid entitlement - Enable this toggle if employees are to be paid for this leave type. Leave the toggle disabled for non-paid entitlements.
    Annual leave, personal leave, and long service leave are all examples of paid entitlements. Leave without pay is an example of a non-paid entitlement.
  - Accrual Value (hours) - The rate at which this entitlement accrues per hour of work.
  - Accrual per - Which hours does this leave entitlement accrue on?
    - Ordinary Hour Worked - Accues only on ordinary hours (does not include overtime).
    - Every Hour Worked - Accures on ordinary hours and overtime.
  - When leave is taken
    - Do nothing - This entitlement will not accrue on any other entitlements, only hours worked.
    - Accrue on all entitlements - This entitlement will accrue on hours worked and all entitlements.
    - Accrue on this entitlement - This entitlement will only accrue on hours worked and this entitlement. Not any other entitlements.
  - Variables on Cashing, Variables on Termination, Variables on Leave Application
    - Workers Compensation - This will be calculated with this entitlement included.
    - Payroll Tax - This will be calculated with this entitlement included.
    - Public Liability - This will be calculated with this entitlement included.
    - Margin (Normal)
    - Superannuation - Will be paid on this entitlement.
    - Leave Loading - Will be paid on this entitlement.
  - Pay on termination - Enabling this toggle will allow you to select the ATO category during the termination workflow.
  - Reportable Leave Type - This determines how the entitlement will be reported through STP.
    - Other Paid Leave - Select this if none of the below are appropriate for the entitlement.
    - Paid Parental Leave
    - Workers Compensation
    - Ancillary and Defence leave
    - Time off in lieu
- Employee Leave Application Settings
  - Can an employee apply for this leave type?
    - Yes - An employee can apply for this leave anywhere on the platform (time off, submit shifts, timesheets). If you wish for your employees to be able to apply for this leave type, please select this.
    - No - This is an admin-only leave type meaning only admins can apply this leave type to the employee from anywhere on your platform.
  - Leave type can be assigned to a casual employee - Slide this toggle on if you will allow this to be assigned to casuals (i.e. LWOP, Casual LSL, etc.)
  - Allow file upload - Enable this toggle if you would like to allow supporting documentation to be uploaded with the leave request or in Approve shifts attached to a shift.
    - No. of leave days taken for file upload to be required
      - Off - File upload is enabled for the leave type but is not mandatory.
      - Always Mandatory - A file must be uploaded with the leave request.
      - 1 - 6 - The number of days a leave application has to be to enforce a file upload with the leave request.
    - File upload is mandatory if leave falls on - Select from the days of the week. This option will override the settings of No. of leave days taken.
- Applying Entitlement to Employee Settings
  - Apply to New full-time and Part-time employees - When adding a position to a new permanent employee, there will be a prompt to add entitlements. Selecting 'yes' will add this entitlement and any others with this toggle on.
  - Apply to Existing Full-time and Part-time employees - When saving this entitlement, it will be added to all existing permanent employees.
  - Apply to New Casual Employees - This option is only available with non-paid entitlements. When adding a position to a new casual employee, there will be a prompt to add entitlements. Selecting 'yes' will add this entitlement and any others with this toggle on.
  - Apply to Existing Casual Employees - This option is only available with non-paid entitlements. When saving this entitlement, it will be added to all existing casual employees.
- Operation Settings
  - Invoice Operation - Available for paid entitlements only. When leave is taken, it will be invoiced per your charge rates in the operation rates book.
  - Payslip Settings
    - Show leave balance on payslips - Enabling this will display the accrued balance of this leave type on the payslip.
      
      Hot tip: That if this is disabled, employees will not see the balance in the employee portal/app either. This is commonly done for personal leave.
    - Show leave redeemed on payslips - Enabling this will display the amount of leave taken on the relevant payslip.
Ensure to Save your changes.

Edit an existing leave entitlement

At any time you can update existing leave entitlements some such use cases maybe:

- To hide leave balances from your employees.
- Promote mandatory file uploads for personal leave (medical certificates).
- To apply it automatically for new employees.

However, prior to editing existing leave entitlements, you should take into consideration:

- Non-paid leave entitlements cannot be edited to become paid entitlements. In this instance, creating a new paid leave entitlement will be the best option.
- Paid entitlements can be changed into non-paid entitlements, but the change is irreversible.

To edit an existing leave entitlement:

Navigate to the main menu and select Payroll Settings > Leave Configuration.
Locate the existing Leave type and select the edit icon to the right.
Edit the details of your entitlement to suit. Please refer to the Set up a new entitlement accordion above for details on what all fields mean and do.
Select Save.

Change the STP category of an entitlement

You may find that your leave entitlement has been attributed to the wrong STP category, and you'd like to correct this. If this is the case, users with the relevant permission will have access to change the STP category assigned to leave items, pay items, allowances and deductions.

Before you start, please consider that STP category changes, once made, will affect:

- The full financial year that is selected
- All payslips on all employees

Please note: Only users with the permission 'Manage STP Categories' can make changes to STP categories, as this will move all of your reportable data to a new STP reporting category.

To change the leave entitlement STP category:

From the main menu, navigate to Payroll Settings > Leave Configuration.
Locate the leave entitlement you'd like to edit, select the edit icon to the right, and choose the Change STP category selection.
In the drawer, make the following selections:
- New STP category - All choices relevant to ATO leave categories will be displayed in the drop-down box.
- Apply change beginning from - This change will apply to the entire selected financial year.
- Preview related payslips - Engage the toggle to view all related payslips where this STP category change will be reflected.
  
  Hot tip: Updating the STP category will affect employee's ATO data. Please ensure you are aware of the implications when performing this action. The blue ATO badge will link you directly to ATO guidance on STP reporting.
Once your selections are finalised, select the Apply Change button.

You'll now see your changes registered under the STP category column (refresh your browser to view the changes).

Apply Entitlements

Apply a leave entitlement to an individual employee

Entitlements that are used under specific circumstances (e.g. Paid Parental Leave, WorkCover) or on a case-by-case basis (e.g. bonus annual leave) should be added to employees individually.

Please note: Leave entitlements will start accruing from the first pay period in which they are assigned to an employee's profile; remember to reprocess any draft payslips. Balances will not be backdated to the start of employment.

To add a leave entitlement to an individual's profile:

Locate the relevant Employee Profile via Approved People or via the global search bar.
Navigate to the Employee Card > Employment Type > and select + Entitlement.
From the drop-down menu, select the relevant leave entitlement (e.g. Paid Parental Leave).
Update the accrued amount to set your starting balance for the employee.
Either leave the default settings or override these if required.

            
Select Add & Review Entitlement.
At this stage, you can assign more leave entitlements by repeating steps 3 - 6.
Select Save.
Reprocess any draft payslips this leave entitlement may apply to.

The process for adding entitlements to casual employees is very similar. If you would like specific information about applying leave entitlements to a casual employee, please see our Managing Casual Leave / Entitlements article.

Apply leave entitlements in bulk

When setting up a new leave entitlement, or even editing, it may be preferable to apply to your employee profiles in bulk (i.e. setting up a bonus leave type or LWOP), however, there are a couple of important things to consider.

- Only non-paid entitlements can be applied in bulk to casual employees.
- Entitlements can be applied in bulk to all permanent or casual employees only. You are unable to select a mixed group of employees to apply entitlements to.

To apply entitlements in bulk:

From the main menu, navigate to Payroll Settings > Leave Configuration.
Select the edit icon to the right of the entitlement you'd like to apply in bulk.
In the Applying Entitlement to Employees Settings section, enable the toggle/s for:
Select Save
The entitlement will now be added to all the permanent and/or casual employee profiles, with a balance of 0 hours. Please refer to the "Update leave entitlement values in bulk" section below to update employee leave balances.

Employee entitlement configuration

For employees with specific contractual agreements, there are several options available to customise leave entitlements on their profiles. This is beneficial because it eliminates the need to create a new leave type for each individual employee.

Settings that can be applied per leave type on an employee's profile include:

- Accrues per (Ordinary Hour Worked or Every Hour Worked).
- Accrues at (rate per hour).
- Leave loading percentage.

Before you customise or override the entitlements of an employee, consider whether this is necessary. If you are editing the following items for more than 1 employee, it may be worth creating a new leave type instead.

For example, if some of your employees are entitled to 5 weeks of annual leave while others are entitled to 4 weeks, creating a second entitlement will be a better solution.

To configure the leave entitlements for an individual employee:

Navigate to the employee profile > Employee Card > Employment Type and select the edit icon (pencil) on the entitlement you'd like to override.
Make your edits. The following fields are available to edit by default:
- Leave balance - The employee's current accrued leave balance.
- Minimum accrual - The minimum amount (hours) an entitlement will accrue against on a payslip, regardless of hours worked.
  
  For example, if this field is set to 20 hours and an employee works 10 hours. The employee's payslip will apply the same amount of leave accrual as if they had worked 20 hours.
  - This field is 'per payslip'. If you pay per fortnight and set this field as 20 hours, this will set a minimum for the entire fortnight.
- Accrual limit - The maximum amount (hours) an entitlement will accrue against on a payslip, regardless of hours worked.
  
  For example, if this field is set to 20 hours and an employee works 30 hours. The employee's payslip will apply the same amount of leave accrual as if they had only 20 hours. The remaining 10 hours will not accrue leave.
  - This field is 'per payslip'. If you pay per fortnight and set this field as 20 hours, this will set a maximum limit for the entire fortnight.
To customise the entitlement further, select from the toggles below to enable more options:
- Allow negative leave balances - Enabling this toggle will allow your employee to be paid for the entitlement in excess of what they have accrued.
  - Once enabled, you can set an hour cap in the 'Cap employees negative balance at' field.
    
    For example, if an employee submits a leave application for 20 hours of leave but only has a balance of 10 hours.
    - No cap is specified - Once approved, the employee's payslip will pay 20 hours of leave.
    - A -5 hour cap is specified - Once approved, the employee's payslip will pay 15 hours (10 accrued + 5 capped). The remaining 5 hours will be unpaid.
- Override accruals - This toggle will enable you to update the following:
  - Accrues p/hr - Override the default and apply a new per-hour accrual rate for the entitlement.
  - Accrues on - Select if this leave entitlement accrues for:
    - Ord hrs - Only accrues on ordinary hours worked.
    - All hrs - Accrues on ordinary and overtime hours worked.
- Override Pay Rate - The pay rate (excluding leave loading) at which this entitlement will be paid.
  - Once enabled, set the new rate in the 'Custom pay rate' field.
  - When left disabled, the entitlement will pay at the employee's primary position base rate.
- Override leave loading - This toggle will enable you to update the following:
  - Leave loading - The loading percentage applied to this entitlement. The value input here will be used instead of the loading rate applied in the award.
  - STP reporting set as "Other Paid Leave" - For leave types assigned to the STP category 'Other Paid Leave', you can specify how the loading is to be paid.
    - Other Paid Leave - Leave loading is paid out as an additional payment with leave. Superannuation will also apply.
    - Overtime - Leave loading is paid out as overtime; as such, superannuation will not apply.
      
      Hot tip: The STP reporting set as "Other Paid Leave" setting will be automatically available for any leave entitlements that include leave loading in their Leave Configuration (e.g. Annual Leave).
To save, select the green tick.

Hot tip: You can also edit or update most of these settings in bulk. Please refer to the section below titled 'Update leave entitlements in bulk' for the steps.

Update Employee Entitlement Values

Update leave entitlement values

The accrued value of any leave entitlement can be updated for your employees on their profile. This method is best if you need to update the entitlement value of a single employee or for casual employees.

How to edit an employee's leave entitlement value:

Navigate to the employee profile > Employee Card > Employment Type.
Below the employee positions, you will find all the entitlements applied to the employee.
Select the edit icon against the entitlement you'd like to update.
Add the correct leave balance.
Select the green tick to save.

Update leave entitlement values in bulk

You can easily update the leave balances and settings for all your permanent and salaried employees using a single CSV import. This process allows you to manage the leave types linked to their profiles in bulk.

Updating entitlements in this way can be especially useful for several scenarios including:

- Annual reset of entitlements that do not accrue (e.g. Compassionate leave).
- Transferring employees from another platform.
- Adding any bonus leave.
- Enabling negative leave or capping leave in bulk.

If you need to update entitlement values for casual employees, please refer to the section above.

Please note: Using this method, you can update most fields in an employee's leave entitlement except for 'Accrues on (Ordinary Hour Worked or Every Hour Worked)'.

To update leave entitlements in bulk:

Navigate to the main menu > Import/ Export > CSV Import > then select Employee Entitlements from the drop-down menu.
Select Export Current Entitlements and update the required fields. Refer to the Data Validation section below for details of the fields you can edit.
Save your CSV file.
Back in foundU, select Choose file and select your updated CSV.
Select Import CSV.
The import tool will have updated the entitlements as per your edits. You can navigate to an Employee Profile to see the individual changes.

Data Validation

When importing data into foundU, the data must be provided in the correct format. Below, you will find all the information required about the columns included in this import and the formats accepted for editable data.

Please note: The bold rows in the table below denote editable columns in your export.

Column Name	Column definition	Editable	Accepted format
Employee ID	Unique identifier for the employee.	N	N/A
Employee Name	Employee's full name.	N	N/A
Use Default	Shows whether the default leave loading is being used. If marked 'yes', the standard leave loading rate is applied. If marked 'no', specify the accrual rate in the Leave Loading column.	Y	yes, no
Accrual Rate	The rate at which the entitlement accrues per hour.	Y	Numerical
Entitlement Name	The name of the entitlement.	N	N/A
Balance	The current accrued value for the entitlement.	Y	Numerical
You have the option to update the following columns. They will be blank by default and can remain so unless needed.
Accrual Limit	The maximum amount (hours) an entitlement will accrue against on a payslip, regardless of hours worked.	Y	Numerical
Leave Loading	The overridden leave loading rate if 'Use Default' is set to 'no'.	Y	Numerical
Allow Negative Accrual	When set to 'yes', employees can take more leave than they have accrued.	Y	yes, leave blank
Negative Hours Cap	The limit for accruing negative leave. If negative accrual is disabled, this field will be blank. When no cap is set, this field will display 0.	Y	Numerical
Pay Rate Override	The overridden rate leave is to be paid.	Y	Numerical

Reporting Entitlements & FAQs

Leave Entitlement Reporting

When it comes to reporting your employee's leave entitlements, you have a handful of options at your disposal. Take your time to explore these choices, as they can really help you understand what your employees are entitled to and how to access that information easily.

The key reports available for your use are:

- CSV Export / Import
  - This export will provide all entitlements for all non-casual employees. Use this export if you want to update entitlements (accrued values, allow negative accrual, etc).
  - An example of the export would look like the one below. You'll now have the option to make changes and reimport should you wish to.
    
    For more information regarding this import, please refer to the 'Update leave entitlement values in bulk' section above.

- People Menu Export
  - You can export the balances for all of your emplyoee's leave entitlements directly from the Peoples menus.
  - Addtionally using the filters you can export for specific groups or individual employees.
    
    Hot tip: If this is a report that you'll need to run with some regularity, you should save it for easy access next time! In the bulk export menu, after selecting your required fields, select 'additional options' to save your report.

- Leave (New) Report
  - Leave liability and leave movement can be reported on through the Leave (New) Report.
  - The leave liability report can be used to determine the amount of leave owed to employees on a specific date. It can accurately show past and present leave owed, as well as predict future leave owed.
  - The leave movement report can be used to highlight any movement or changes to entitlement balances.
    
    Please note: The Leave (New) Report can pull data from 1 January 2024. If you require data from before this time, please use the previous existing leave reports.

Other Leave Reports

If you need to see data before January 1, 2024, or your platform does not yet have access to the new Leave Reports, you'll find the existing Leave Reports helpful.

- Report for Leave Movement before Jan 1 2024.
- Leave Liability & Leave Paid before Jan 1 2024.

FAQs

Is there a way I can hide Personal Leave balances from my employees?

Yes! You can edit Personal Leave's rules by toggling on the 'Show leave balance on payslips' setting. Once this setting has been turned on:

Employees will not see Personal Leave accrual or balance on their payslips.

Employees will not see their Personal Leave balance when applying for Time Off.

Employees can still apply for Personal Leave and are informed when their leave is insufficient; however, no current or estimated balances are provided.

How can I ensure my employees are providing a medical certificate when applying for leave?

Leave types can be set up so your employees are required to upload a file when they submit a leave application. This can be set to apply:

For all leave applications.

When a leave application covers x number of days (e.g. 2 or more days).

When a leave application falls on a specific day of the week (e.g. Monday or Friday). This setting will take priority.

For example, if a leave application is set for a single day, but that day is a Friday. Even though the leave application is less than 2 days, as the day requested is a Friday, the employee will be required to upload a file.

This can be turned on per leave type by toggling on the 'Allow file upload' setting and then choosing required options from the 'No. of leave days taken for file upload to be required' and 'File upload is mandatory if leave falls on' fields.

Can we enforce a medical certificate or another way to track when an employee calls in sick for a Public Holiday?

If you are looking for a way to track and manage employee absences for public holidays, there are 2 options:

You can set up specific leave types (Personal Leave) to require a file upload, see question above. As a public holiday approaches, you can update your entitlement's leave configuration (rules) by selecting the actual day of the holiday and mark it as mandatory.

For example, if ANZAC Day falls on a Wednesday, you would set Wednesday as mandatory (and even the day after).

After the public holiday has passed, remember to update the entitlements leave configuration (rules).

You can set up a unique attendance code (e.g. Public Holiday - Called in Sick) and apply this code for shifts that are declined on a public holiday (or the day after). This will allow you to track any regular absences using the Attendance & Performance Report.

Can I update my Casual Employee leave balances in bulk?, Why can't I see my Casual Employees in the Leave Entitlements import?

Unfortunately, only unpaid leave types can be applied to casual employees in bulk. As a result, leave balances for casual employees cannot be updated in bulk and will not show up in the Leave Entitlements import CSV.

It is recommended to assign leave entitlements to casual employees when adding a new position to ensure that leave types accrue with each payroll cycle.

How can I manage Compassionate Leave?

Unlike other leave entitlements, Compassionate Leave does not accrue based on hours worked, instead, the available balance resets per year. Since this type of leave does not accrue, it is typically applied to the employee's profile on an ad-hoc basis. The balance will not automatically reset for the employee each year.

This means when an employee's circumstances require the use of Compassionate Leave, it will need to be added to the employee's profile before a leave application can be submitted.

To summarise this process:

Employee notifies manager they need to redeem Compassionate Leave.

The manager adds Compassionate Leave and balance to the employee's profile.

Leave application is sent and approved in Time Off.

How can I manage Long Service Leave (LSL)?

Please note: LSL rules can vary on a per-state basis please check your government's website for your state/ territory's specific details.

LSL is a unique leave type as it has a waiting period during which it needs to accrue, for both casual and permanent employees, before an employee becomes eligible to redeem it.

As such, when managing LSL in your platform there are a few key considerations:

Leave entitlements begin to accrue from the first pay period to which they have been applied to an employee's profile and balances do not backdate.

LSL does not automatically change in an employee's profile when they become eligible to redeem.

By default in your platform you will have 3 LSL types:

LSL (Under 7/10 years) - This leave type is used just to accrue against the employee's profile. This leave type will not appear for the employees at all, nor can they submit leave applications for it.

LSL (Over 7/10 years) - This leave type is used when an employee is eligible to redeem their LSL. Employees with this leave type can view and submit leave applications for this leave.

LSL (Over 15 years) - This is an additional LSL accrual, it can be applied to employees who receive additional LSL after 15 years. Employees with this leave type can view and submit leave applications for this leave.

To manage an employee LSL:

Assign the LSL (Under 7/10 years) to their profile to commence accruing.

Set a milestone reminder to inform you when an employee reaches their LSL threshold.

When an employee is eligible to redeem their LSL:

Add LSL (Over 7/10 years) to their profile.

Add the balance from the LSL (Under 7/10 years) to the LSL (Over 7/10 years) leave type.

Delete the LSL (Under 7/10 years) leave type.

If your employee is eligible for additional LSL accrual after 15 years, add the LSL (Over 15 years) leave type to their profile.

Do leave types accrue across multiple positions? If so, which position is leave paid from?

Once a leave entitlement has been added to an employee's profile, it will start accruing for all hours worked.

For example, if your Annual Leave entitlement has been set up to accrue on ordinary hours worked, then it will accrue for all ordinary hours on all positions worked by an employee.

When redeeming a leave, the rate at which the employee is paid will be:

For permanent employees - The rate set in their primary position.

For casual employees - You will need to select the relevant position when adding leave entitlements to an employee's profile, and all leave will be paid from this rate.