Leave loading

Leave loading means an employee taking annual leave is also entitled to this extra payment on top of their base rate of pay.

Annual leave loading is not an automatic entitlement. Whether or not it's payable is determined by the employee's Award, Enterprise Agreement or employment contract.

Take the time to check the Leave loading on your platform, as it may need to be updated if:

  • Leave loading was not set up on the platform
  • A new (or existing) employee becomes eligible for receiving leave loading (ie. when they sign employment contract).
  • The leave loading rules to an Award have been updated by Fair Work.

There are 3 key areas where leave loading needs to be entered these are:

  1. Awards & Agreements > Rate Labels & Settings under the specific Award. Leave loading amount will be entered here if it applies to all positions in the Award. Otherwise the value will be 0. The amount entered here will be used as the default leave loading amount.
  2. Leave loading needs to also be entered as a variable in Payroll Settings > Leave Rules> Annual leave. 
  3. Employee's profile > Employee card > Employment Type > Entitlements
    • Depending on the set up in Awards and Agreements, the employee may either:
      • Have Leave loading applied directly if it has been applied to the award
      • Or you can override the leave loading % for a specific employee.
Adding leave loading to an Award

In the scenario that all employees in an Award are to receive leave loading, you can add leave loading to your entire Award.

This will the affect everyone paid under this award. 

To do so:

  1. Navigate to the hamburger icon> Full menu > Awards & Agreements.
  2. Select your relevant award e.g. Manufacturing Award and select the Rate labels & Settings link.
  3. Then scroll down to the Leave loading section and enter in the relevant leave loading as a decimal.
    -For example,  0.175 (17.5% will be entered as 0.175)
  4. Then save.
  5. Now all employees who have a position in this Award will have leave loading applied to their annual leave. Additionally this will be the default leave loading.
Adding leave loading as a variable in Leave Rules
In order for leave loading to be paid to employees, ensure to add leave loading as a variable in Payroll Settings > Leave Rules.
  1. Then edit the relevant entitlement e.g. Annual leave.
  2. Enter leave loading as a variable if leave loading is paid upon Cashing, Termination and/or Leave Application (Redeem).
    -For example if leave loading is entered as a variable in Leave Application only, then employees will be paid leave loading only when on Annual leave: Redeem is selected in the payslip and not upon Cash out or Termination.
  3. And save.

Adding leave loading to an Employee's profile
There will be certain cases when you would like only certain employee's to have leave loading and not others.
In this case, you'll need to apply leave loading by using leave loading override either individually to each employee or through a leave bulk import.

 

Leave loading override for an individual employee

  • If you choose to use 'default leave loading' the below is not required.
  • If you chose to use leave loading override, you'll first need to add leave loading as a variable in Leave Rules (see above).
  1. Navigate to the Employee's profile by either searching for the employee or via People > Approved people and select the employee.
  2. Select the Card icon > Employment Type tab and locate the relevant entitlement e.g. Annual leave
  3. Click on edit and in the edit screen add the Leave loading override e.g. 17.5%
    • For example your award could be set at 0 leave loading, but this employee's contract includes leave loading. Setting the 17.5% override means that the leave loading will apply to the employee's leave pay rate.

  1. The leave loading override will now apply to this employee when taking annual leave.
Bulk apply leave loading to selected employees

To apply leave loading to a group of permanent employees:

You can bulk update the leave loading percentage to permanent employees only.

Casual paid leave such as casual long service can't be updated in bulk. This is because casual long service leave needs to be attached to an employee's position and therefore needs to be edited individually.

 

To import leave loadings for your permanent staff:

  1. First download your leave entitlements for all your permanent employees, this can be done through hamburger menu > Integrations > CSV Import , then select Employee Entitlements and then select the Export Current Entitlements Button.
  2. Make the required adjustments to the Leave Loading column and save your document.
  3. Then upload that new document using Import CSV button which will then show a choose document button to upload your document.
  4. Once uploaded you'll temporarily see a horizontal blue line display, your employee's entitlements are now updated.
How leave loading appears in payslips

Leave loading is currently automatically added to the entitlements pay rate. For example, you can see in the below payslip that the employee's Normal rate is $21.9290 and the rate Annual Leave is paid at is $25.7666 (this indicates it is inclusive of 17.5% leave loading).

Leave loading isn't showing on my payslip

If leave loading isn't showing on your payslip, use the below checks to confirm that leave loading has been set up accordingly.

  • Check that you have Leave loading selected as a variable in your Leave Rules.
  • If leave loading applies to all employees in an Award, ensure that you have leave loading in the Award & Agreements > Rate Labels & Settings.
  • If leave loading only applies to specific employees and not the whole award, please ensure that Use Default Leave Loading is not enabled for the applicable entitlement in the employee's profile and to enter leave loading % in the Leave Loading override field. 
  • Below is an example of when 0% leave loading is entered under the award, however an individual employee is entitled to leave loading for Annual Leave.
  • If leave loading has been added to the award but not showing for a particular employee, please ensure that Use Default Leave Loading is enabled for the applicable entitlement in the employee's profile.
  • It should show Leave Loading override: None when using default leave loading. If you see 0% next to Leave Loading override, this means the setting Use Default Leave Loading has been disabled and no leave loading will be paid to the employee.

 

 

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