9.9.1 Leave Pay Sequence Maintenance (09200m)

This program sets up the Master pay summary for Leave administration.

Leave Pay Sequences are limited to:

Rules: A Pay Sequence has only one set of Leave rules. (different rules require different pay sequence) Only one pay leave code is allowed to be active for a category for an employee. Therefore, if you change from a 40-hr week to a 38-hr week, you will need to create a new pay sequence code, as the total hours per year will change.

If you are in Leave Pay Sequence Maintenance and the linkage Code 523 = L (Leave), then an option exists to directly pop-up this maintenance screen to maintain the Leave aspects of the pay sequence.

If you give an employee a Leave pay sequence in setup and do not set additional criteria, then the Leave Pay sequence allowance will be set up in background to calculate from the Employee Start Date.

Muli previously had a delayed start for Long Service Leave. We are now using the standard provision method, then allowing discounting for the obligation in the amended obligation reporting process.

Ie:

After 10 years of service the LSL entitlement will be 2 months = 8.666 weeks.
Therefore if an employee is working a 38 hours week then the entitlement after 10 years will be 38 x 8.666 = 329.3 hrs.
329.3 hrs over 10 years equates to 32.9 hrs per year LSL entitlement which is the same as (32.9 /  52) or 0.632 hrs/wk round up 0.7 hrs per week,  with a maximum value for the year at 33 hrs.

In setting up the Payroll 9.10.1 there is a discounting factor for LSL to allow review of Long Service Leave provisions to be discounted early in an employee's service.
For each employee, there are four values,

Paid Hours
Employee Gross (income flag)
Employee Gross (all)
Employee Gross Cost

from which we can calculate the cost per hour for last payrun and cost per hour last year based on items flagged as income. Therefore if Bonus is to be excluded, ensure income flag is turned off.

Leave calculation explained: Leave is calculated as part of each payrun. Therefore the entitlements appearing on a pay advice are correct up to the “Paid to Date”

When an individual is set up on Muli, the leave has a start date (default to commencement date) but where a payroll has been moved across to Muli then the pay person will establish a Leave Start Date with an opening balance. If the entitlement anniversary value has been used then the anniversary is Day and Month of commencement NOT Leave Balance date.

Entitlement is always calculated from Balance Date on Yearly Balance on day/month, then the balance of the year to date is calculated on weekly accrual.

Total Hours Entitlement is adjusted for:

a. adjusted hours manually entered (+/-)
b. non work hours divided by hours/week by weekly hours for items such as Leave without pay, maternity Leave etc.

Remember there is a differing calculation for each employee depending on worked hours per week, requiring differing calculations and due to complexities of some shift work, it is logical to slightly over-provide pay period basics and verify the maximum on annual anniversary date. All Leave calculations are done in hours.

There are 2 pay sequences to manage a Leave entitlement, the Bxxx to pay the Individual and the Wxxx to provision for the obligation.

1. Pay Sequence
   A Bxxx pay sequence that has 523 code set to 'L'
2. Hours Accrued per Week
   Take the annual hours allowance and then round up as the over accrual will be stopped by the Max hours defined below
3. Up to a Maximum of
4. Entitlement on Anniversary
   In some awards in the old sick leave the full yearly entitlement became available at the start of the subsequent year
   If Q4 is used the value in Q2 ceases jobs used past anniversary date.
5. Default Recovery Pay Sequence
   This is the pay sequence where the payroll system creates the provision to pay the obligation that is accruing.

This program is where you edit the factors affecting the leave entitlement calculation.

Pay Code
Description
Hrs Accrued
Per Dy, Wk, Mth, Pay
Max Hrs Per Year
Period Max.
Entitlement on Anniversary Date
Anniversary Hrs ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​
Recovery Pay Code

The following items are an employee record

Active Start Date Y/N
Agreed Balance Date
Opening Balance
Adjustments Total
Entitlements Taken
Balance

Transaction Enquiry Button (16 items)

First it asks for

1. Pay Sequence Code:
   Range B300 to B898 As per Sequence Code Report [9.13.4] eg. Sick Leave - 1801  You can use the F3 Enquire key for a pop-up list to choose from.  If you need to add a code it must be done through Sequence Code Maintenance [9.13.3].
   Once this is entered, it then displays the following data.
2. Hours Accrued per week
   The hours you wish to accrue for the period worked for the period stated in the next item. eg. 8 hours
3. Up to Maximum of Hours per year: 
   The maximum number of hours allowed for the year. eg. 80 hours. For the example shown, the machine will accrue 8 hours per month, up to a total of 80 hours in any one year.
4. Entitlement on Anniversary in hours:
   Stated in Hours (for the year).  If this value is greater than zero then it over-rides the above parameters.
5. Default Recovery Provision Pay Sequence

Note: To report Leave Master Record use 9.10.7 Pay Sequence Report

Termination Redundancy Payment

The Australian National Employment Standards require a notice period of

First Year        1 week
1 to 3 years    2 weeks
3 to 5 years    3 weeks
5 years           4 weeks

And If over 45 years old and 2 years service an additional week. In theory this time will be worked out, but you may wish to make more than a nominal provision of 0.3 hrs per week