Calculating Long Service Leave

In this section we will look at the long service leave entitlements—LSL PRO DYS and LSL ENT DYS—and the LSL absence take. These enable the calculation of long service leave by determining the correct leave grant of accrual. LSL PRO DYS stores the pro rata values of the leave and LSL ENT DYS stores the number of days of employee entitlement. Two long service leave earnings are delivered—LONG SRV LVE to capture payments for the long service leave and TER LSL for long service leave payments upon termination.

Absence entitlement LSL PRO DYS retrieves the pro rata values of the leave using formula LVE FM LSL ENT which:

  1. Accesses bracket LVE BR LSL ENT DYS to return the correct value of entitlement, number of years for accrual, and anniversary to start accruing.

    Following is the structure of the LVE BR LSL ENT DYS bracket:

    LVE DR LSL FR SRV

    Number of Service Years Since SERVICE DT until CURR PRD END DT (Key)

    LVE BR LSL ENT

    Number of Grant Days For Row

    LVE VR LSL ACCR YR

    Over How Many Years the Grant Is Accrued

    LVE VR LSL ANN YR

    Anniversary When the Accrual Starts

    0

    20

    20

    0

    20

    25

    10

    20

    30

    25

    10

    30

    40

    25

    10

    40

  2. The LVE VR LSL ANN YR variable, used in the LVE BR LSL ENT DYS bracket, stores the value representing which anniversary to start accruing the long service leave.

    The LVE VR LSL ACCR YR variable stores the value representing the number of years over which the long service leave is granted.

  3. The date LVE DT LSL ANN calculates the date of the anniversary for starting the long service leave accrual, as SERVICE DT + LVE VR LSL ANN YR years.

    Note: Accumulators related to both entitlements are defined as custom period with the date specified as LVE DT LSL ANN. This date has been defined as SERVICE DT plus the number of years retrieved from the bracket in the variable LVE VR LSL ANN YR. This means that when the current number of service years triggers progressing to the next row in the bracket, the number of years added to the service date changes, and the new instance of the accumulator is generated.

    Formula LVE FM LSL PRT PRD calculates pro rata entitlement if the anniversary date falls in the current period. It is subtracted form LSL PRO DYS and added to LSL ENT DYS.

  4. The rows in the LVE BR LSL ENT DYS bracket are processed as follows:

    1. For service years less than 20, 20 days are accrued over 20 years, with the accrual starting on the service date.

    2. For service years >= 20 and < 30, 25 days are accrued over 10 years, with the accrual starting on the 20th anniversary of the service date.

    3. For service years >= 30 and < 40, 25 days are accrued over 10 years, with the accrual starting on the 30th anniversary of the service date.

    4. For service years >= 40, 25 days are accrued over 10 years, with the accrual starting on the 40th anniversary of the service date.

  5. On the anniversary date specified in the bracket, the current balance for the LSL PRO DYS, (stored in the LSL PRO DYS_BAL accumulator) is moved to entitlement LSL ENT DYS.

    Long Service Leave can only be taken as paid leave at this point.

    Accumulator LSL PRO DYS_BAL is auto generated (when selected) using information from the Period Settings page. Formula LVE FM LSL MVE PRO moves the pro rata to entitlement. The formula returns the value of the previous occurrence of the pro rata accumulator to be moved to the entitlement. Formula LVE FM LSL PRT PRD calculates the pro rata entitlement if the anniversary date falls in the current period. It is subtracted from LSL PRO DYS and added to LSL ENT DYS.

  6. Accrual of the long service leave is controlled by the remaining two outputs from the bracket — LVE BR LSL ENT DYS returns the number of days to be granted in the currently processed accrual period (depending on the number of years in service) number of years it takes to accrue the grant.

    Those two values calculate annual entitlement as number of days granted over number of accrual years.

  7. Formula LVE FM ENT returns the number of days to be accrued on the annual basis.

    Value of grant retrieved from the bracket LVE BR LSL ENT DYS is divided by LVE VR LSL ACCR YR. It also retrieves the value of the previous value of the accumulator LSL PRO DYS_BAL.

The absence take LSL related to the absence entitlement LSL ENT DYS looks to the absence entitlement balance to decrement absence units (days). That ensures that only entitled LSL is paid. The absence take for the LSL ENT DYS entitlement uses day formula LVE FM DAYS ABS PH that counts the number of units due to be worked on the absence day to determine by how much to reduce the entitlement balance.