Calculating and Taking OGO Long Service Leave

This topic provides an overview of OGO long service leave and discusses ways to calculate and take long service leave.

Page Name

Definition Name

Usage

Define Prior Service AUS Page

GPAU_LSL_HISTORY

Enter details of periods of service.

The rules for long service leave accrual and take for the Commonwealth Government (referred to as OGO) depend on data entry of prior and current service periods. The rules calculations include such things as full- or part-time work, an adjusted service date, days between different periods of service, and non-service days.

Note: Any organization can use this LSL processing method if it suits its business practice.

Leave is accrued as either part-time or full-time pro rata and entitlement, depending on the type of employment at the time of accrual.

This long service leave is based on three months' leave after 10 years, so the accrual rate is:

3 months ÷ (12 months × 10 years) = 0.025 months per month.

Pro rata leave becomes entitlement after the first 10 years and, thereafter, annually.

For the system to correctly calculate an employee's pro rata and entitlement balances—full- and part-time—you must record the employee's prior service history initially and thereafter maintain their current service history. Do this on the Define Prior Service AUS page.

Note: The elements that calculate long service leave—including the division between pro rata and entitlement—access the data entered on the Define Prior Service AUS page each time that you run an absence calendar, so it must be up-to-date.

Each time you run an absence calendar, the system:

  • Recalculates the adjusted service date.

  • Recalculates the duration from the adjusted service date to current period end date.

  • Subtracts the between service days.

  • Subtracts non service days.

  • Determines which part of the remaining duration accrues pro rata LSL leave and which part accrues entitlement LSL leave.

  • Determines how much of the entitlement is part-time leave and how much is full-time leave.

  • Checks for leave takes and reduces the part-time or full-time entitlement calculations by the amount of the take.

  • Calculates the part-time average hours for part-time leave takes.

Note: Only the pro rata full-time absence entitlement, PSH LSLPROFT, initiates the LSL accrual process rule using its entitlement calculation formula PSH FM LSL ENTLMNT. Absence entitlements PSH LSLPROPT, PSH LSLENTPT, and PSH LSLENTFT have numeric 0.00 as the entitlement calculation. When the rule has finished, the system updates _ENT, _BAL, and _TKE accumulators for all four absence entitlements.

Use the Define Prior Service AUS page (GPAU_LSL_HISTORY) to enter details of periods of service.

Navigation:

Global Payroll & Absence Mgmt > Payee Data > Maintain Absences > Define Prior Service AUS > Define Prior Service AUS

This example illustrates the fields and controls on the Define Prior Service AUS page. You can find definitions for the fields and controls later on this page.

Define Prior Service AUS page

Field or Control

Description

Start Date and End Date

Enter the start and end dates of the service period.

Note: Enter service periods in any order. The system sorts them from newest to oldest when you save and refresh the page.

Employer

This is for information only. It is free-form text box

Part Time

Select this check box if the service period is part-time. The Std Hrs/Week field appears, where you can enter the average standard weekly hours for the period. The system uses the values in the calculation of the average weekly hours when determining the payment unit for part-time leave takes.

Non Srv Days (non service days)

Enter your manually calculated non-service days. These are the days in the employment period that do not accrue long service leave.

Note: The accrual calculation includes any value that you enter here. No validation of rules exist, such as Count only if greater than 30 days in a calendar year.

F/T Taken (full-time taken) and P/T Taken (part-time taken)

Enter the duration of the leave take in decimal months (number of days ÷ 30).

Note: The system calculates the between-service days from the date that you enter here. It is the duration in days of the period between the end date of one service period and the start date of the next.

The following table shows how the fields populate the variables through array PSH AR SVC PRD ROW.

Field

Variable

Start Date

PSH VR SP START DT

End Date

PSH VR SP END DT

Part Time

PSH VR SP PT IND

Std Hrs/Week

PSH VR SP PT HRS

Non Srv Days

PSH VR SP NSD

P/T Taken

PSH VR SP TP TKNM

F/T Taken

PSH VR SP FT TKNM

The system adjusts the initial service start date before calculating the duration of the service period upon which the accrual is based. For this adjustment, on-service days and between-service days are totalled then added to the lowest (earliest) start date to reset the lowest start date to a later date.

This diagram shows how non-service days and between-service days are totalled then added to the lowest (earliest) start date to reset the lowest start date to a later date. The variable and date elements are also shown.

Adjusting the service start date

When you run an absence calendar, the system recalculates all of the accrued part-time and full-time pro rata and entitled long service leave. The following two diagrams show the accumulators are increased—at 0.025 per month—for an absence calendar run, after 9 years of service and after 12.5 years of service. Both the _ENT and _BAL accumulators for the four accruals are updated. The accumulators are calendar period based.

This diagram shows updated leave accumulators after 9 years.

Update of leave accumulators after 9 years

This diagram shows updated leave accumulators after 12.5 years.

Update of leave accumulators after 12.5 years

The two absence take elements PSH LSLTKEPT and PSH LSLTKEFT have the same day formula, LVE FM MTH ABS PH. The formula resolves in a similar way to the Federal LSL take. It checks for a public holiday, partial or scheduled hours, and an adjustment made through the User Defined 1 field on the Absence Event Input Detail page. However, each day's hours are converted to months by dividing by the standard hours per month (LVE FM MT STD HRS).

Note: The two takes only check entitlement balances. Pro rata LSL cannot be taken.

The months returned become the paid units (DAY COUNT PD) and unpaid units (DAY COUNT UNP), depending on available absence entitlement weeks.

The positive input for these absence takes are the earnings elements LSL and LWOP.

The full-time units for these earnings are formulas LVE FM MT DCP HRS and LVE FM MT DCUP HRS, respectively.

The formulas multiply the DAY COUNT PD and DAY COUNT UNP (both in months) by the employee's standard monthly hours (hours from the Job record, annualized and deannualized to hours per month) so the system can pay the leave in hours at the employee's hourly rate.

The part-time units for these earnings are formulas LVE FM MT PTDCP H and LVE FM MT PTDCUP H, respectively. When calculating the units for part-time accrued LSL, the system must determine the average monthly hours for the employee over the entire period of service.

The average weekly hours value is the greater of:

  • The average of all part-time periods in the whole period of service.

  • The average of the last 12 months of part-time service if there is any part-time service in the last 12 months.

The average monthly hours replace the standard monthly hours (multiplied by the hourly rate) used for full-time LSL.

Note: The processing of taken leave for OGO LSL does not include decrementing entitlement balances. You must add any taken part-time or full-time leave on the Define Prior Service AUS page for the employee, and the accrual rules adjust the balances.