Apply a new leave entitlement to an employee's profile

Add a new entitlement to an employee's profile

You can grant your employees additional entitlements that enable them to request specific types of leave, for example, Parental Leave.

Adding a new entitlement to an employee involves two key steps:

  1. Ensuring that the entitlement type e.g. Parental Leave, is added to your platform's Leave Rules. See our guide on setting up entitlement rules here
  2. Adding the entitlement to the employee with the relevant employment type e.g. adding parental leave to an eligible employee.

In this article, we will cover: 

  • Adding a new entitlement to an employee
  • Allowing negative leave balance for individual employees and optionally capping this amount
  • How to edit or adjust accrued entitlement hours
  • Managing entitlements when employees change employment types, e.g. full-time to casual 

  If you are looking to pay out leave entitlements due to a termination then please see our Termination Payments help guide here.

Adding a new entitlement to an employee

You can add a leave entitlement to an employee at any time. 

To add a new entitlement, such as parental leave, to an employee:

  1. Navigate to the employee's profile by searching for the employee or via People > Approved People.
  2. In the employee's profile, select Employee Card and open the Employment Type section.
  3. Below the position, you will see an + Entitlement button. You may also see any existing entitlements and their accrued balance here as well.

    Entitlements area.png
  4. Select the Add Entitlement button to add a new entitlement.

      Please note the following: 
    • You will only see entitlements that you have set up in your platform. If you have not set up the relevant entitlement please do this first.
    • If you have already added all relevant entitlements for casual employees, you may also receive a warning message reminding you to first add a new entitlement type to your platform. If this is the case ensure the entitlement created has been set up to apply to the relevant employment type i.e. ensure the 'apply entitlement to permanent/casual employees' toggle is on.

      +Entitlement.png
  5. Select the entitlement that you'd like to add from the drop-down list e.g. Parental leave.
  6. Review the details e.g. you can adjust the accrual rate if you're not using your default settings.
  7. You can also add in the accrued balance e.g. 80 hours and 'Add & Review Entitlement'. You can add other entitlements at this point if you wish.

    Add new entitlment.png
  8. Once you have selected the relevant entitlement and have reviewed/added the relevant details select Save. 

    Save new entitlement.png
  9. The newly added entitlement will now display with the employees existing entitlements ready for use. 

    New entitlement on profile.png

  If you would like more information on Paid Parental Leave then see our helpful Paid Parental Leave help guide here

Allow a negative leave balance for individual employees

Employees are only able to use an entitlement for which they have an entitlement balance.

The one exception to this is if you choose to enable the 'Allow negative leave balance' toggle within the employee's leave entitlement. If switched on, the employee may redeem an amount exceeding their balance. If this leave is approved, their balance will become negative.

Many employers will allow negative leave in the following circumstances:

  • Compulsory closures over Christmas and extended holiday periods.
  • For long-term employees, there may be the assumption that the balance will eventually return to zero or be positive in a short amount of time.
  • To promote good work/life balance, employers may advance or loan their employees leave to enjoy the paid time off they take before they have earned it.

If you would like to configure certain entitlements to go into negative for all or certain employees, follow the instructions below.

To allow an employee to go into a negative leave balance: 

  1. Navigate to the employee's profile by searching for the employee or via People > Approved People.
  2. Select Employee Card in the employee's profile and open the Employment Type section. Below the position, you will see the existing entitlements. 
  3. Click on the pencil icon to edit the relevant entitlement.
  4. Enable the 'Allow negative leave balance' toggle and Save. 
  5. Optionally, you can cap the amount that the employee can go into negative leave.

The Negative balance on the entitlement overview will now be shown in green as well and the capped negative amount will be displayed for this employee.

The employee will now be able to go into a negative leave balance for this leave entitlement. 

 

Editing or adjusting an employee's leave entitlement balances

An employee's leave balance can be adjusted at any time.

Update leave entitlements balances

There are two ways to adjust the balance of hours for an entitlement:

  1. You can edit in the Employee's profile > Employee Card > Employment Type > Entitlements section by selecting the edit pencil icon for the entitlement.
  2. You can edit the accrued value in the Employee's profile > Financial icon > YTD tab.

Depending on your user permissions, you may be able to see either or both. Either method can be used to update the balance.

To update an accrued entitlement balance to an employee via the Employee Card > Employment Type section:

  1. Navigate to the employee's profile by searching for the employee or via People > Approved People.
  2. Select Employee Card in the employee's profile and open the Employment Type section. Below the position, you will see the existing entitlements. 
  3. Click on the pencil icon to edit the relevant entitlement.

    Edit leave entitlement.png
  4. Add the required hours to the 'Leave balance' field.

    Update leave balance.png
  5. You'll now see the updated accrued hours in the entitlements section.

    Updated leave balances.png

To update the accrued entitlement balance via the Financial > YTD section:

  1. Navigate to the employee's profile by searching for the employee or via People > Approved People and in the employee's profile navigate to the Financial icon > and click on the YTD section. 
  2. Locate the relevant entitlement balance and select the edit pencil to edit the accrued value balance. In our example, we'll update the accrued hours balance for Compassionate Leave.

      Please note:
    If the relevant entitlement isn't appearing in this list and it's an entitlement that accrues a balance, you'll need to go back to the entitlement in the Employee Card area of the profile and check how the entitlement type is set up (it's likely that it's not set up to be an accrued entitlement). This will need to be adjusted first before you can update the accrued balance.

    Edit leave balances via YTD.png
  3. Enter the relevant amount of balances and select Save Changes

    Edit leave balances via YTD 2.png
  4. You'll now see the value updated on their Employee Card > Employment Type (ensure to refresh your page to see the updated value).

    Updated compassionate leave balance.png
Employees going from full-time to casual & managing their entitlements

You may have the below scenarios when ending an employee's full-time position:

  • A salaried/full-time employee has been terminated and their leave entitlements are required to be cashed out. 
  • An employee going from full-time to casual employment, and need to cash out leave entitlements e.g. cash out annual leave/ delete sick leave and carry over long service leave to their casual position.

If you have an existing full-time employee e.g. Jane going to a casual position, when you add in the new position details, a pop-up will come up asking you how you would like to manage their entitlements.

There are three options:

  1. Pay Out e.g. cash out the entitlements for example Annual Leave
  2. Carry Over e.g. have the leave continue where the employee will continue as a casual employee (relevant for LSL).
  3. Delete e.g. delete a personal leave entitlement

To finalise entitlements for a full-time employee going to casual:

  1. Create the New Position and select Casual, then fill in the appropriate details and move to Continue.
  2. In the Entitlements section, you will see the existing entitlements for this employee. 
  3. Use the radio buttons to choose which leave types you'd like to:

    • Payout - Annual leave. When these are selected they will appear on the employee's payslip. 
    • Carry Over - Typically Long Service Leave
    • Delete - Most other leave types (compassionate, personal)

  4. If you are transferring an employee from permanent to casual. For each entitlement, select if, after the permanent position, it should be paid out, deleted or carried over to continue accruing during the employee's casual employment. 

      Tip: Typically Annual Leave would be paid out, Long Service Leave would be carried over and all other leave types deleted.

      Please note: If a leave type needs to be carried over but the option is greyed out, check that the leave type has been set up to apply to casual employees.
  5. When you navigate back to the Employee Card > Employment Type and scroll down to the Entitlements area, you will notice the orange 'Pay Out' badge over the entitlement chosen to be paid out. 

  6. When you navigate back to the Employee Card > Employment Type and scroll down to the Entitlements area, you will notice the orange 'Pay Out' badge over the entitlement chosen to be paid out. 

    Pay out leave badge.png

  Please note: The payout process will occur in the payslip for the final period ending before the employee becomes casual. If no draft payslip is created in that period through approving times or leave, a manual payslip will need to be created.