Calculating Annual Leave

This section provides an overview on absence forfeiture.

Annual leave can be carried forward to the next 24 months and compensation is not paid for forfeited annual leave. There is no limitation for statutory employees; the annual leave balance is always carried over to the next year. However, for general employees, the annual leave balance can be carried forward only to the next 24 months.

This section discusses leave accrual.

The accrual process for annual leave occurs once per month. Run this process before pay calculation. For general employees, prorated entitlement is added to the entitlement balance after the monthly accrual process is finished.

For example, an employee is hired on April 15, 2006 and is entitled to 12 days of annual leave per year. The annual leave entitlement at the end of the first month is:

16 / 30 × 12 / 12

If the entitlement increases after a set number of years of service, such as an additional one day, annual leave is awarded when finishing the first year of service. In this case, the employee in the anniversary period gains:

(14 / 30 × 12 / 12) last years entitlement plus (16 / 30 × 13 / 12) new entitlement (effective from the first anniversary day).

For statutory employees, absence accrual runs annually during the anniversary month. For example, if an employee is hired in January 2006, then the first annual absence accrual process is January 2007. After the first accrual, the employee earns seven days of entitlement.

The annual leave entitlement ALV GENL ENT, using formula ALV FM GENL ENT, returns the monthly annual leave entitlement during the monthly accrual process. Use the annual leave in lieu earning ANN LIEU to pay unused annual leave for termination or payment.

The ALV FM GENL ENT formula resolves as follows:

1. The annual leave entitlement value is retrieved from bracket ALV BR GENL ENT.

   The yearly entitlement is deannualised whenever the entitlement has not been changed during the pay period. If the entitlement has been changed, the partial entitlements before and after the anniversary date are added and returned.

2. The current year's annual leave entitlement variable CM VR CUR ENT stores the current deannualised annual leave entitlement.

   The previous year's annual leave entitlement variable CM VR PRV ENT stores the previous deannualised annual leave entitlement.

3. The duration CM DR YR OF SERV returns the employee's years of service (number of years between the service date SERVICE DT and the pay period end date PERIOD END DATE).

4. The formula ALV FM PREV ACCM returns the previous year's balance (system variable PREV VALUE ACCM) and is used in the accumulator initialize rule.

5. The annual leave balance accumulator ALV GENL ENT_BAL is carried forward to the new annual leave accumulator.

   Whenever the accumulator begins, the previous accumulator balance is brought to the current balance (new accumulator period).

6. The variables, CM VR ANNIV MTH (begin month) and CM VR ANNIV DY (begin day) specify the begin date of the accumulators.

   All accumulator periods are year to date (YTD) and begin to accumulate from the employee's hire date.

7. The formula ALV FM GENL FORFEIT returns the forfeited units that are eventually reduced from the annual leave balance accumulator.

   The formula ALV FM GENL ADJUST returns the forfeiture unit. This formula checks the current year's entitlement plus last year's entitlement and forms a forfeiture level. For example, an employee is entitled to 7 days in the first year, 8 days in the second, and 9 days in the third year. During the second year of service, the employee's annual leave balance cannot exceed 15 days, and it cannot exceed 17 days during the third year of service.

The accrual process runs once for every 12 month period from the employee's hire date. The annual leave entitlement ALV STAT ENT, using formula ALV FM STAT ENT, returns the annual leave entitlement for statutory employees, only when their anniversary dates occur in the current pay period. The formula also returns annual leave entitlement from the employee's last anniversary date to the termination date only when the employee is terminated in the current pay period.

The ALV FM STAT ENT formula resolves as follows:

1. The annual leave entitlement value is retrieved from bracket ALV BR STAT ENT.

2. The current year's annual leave entitlement variable CM VR CUR ENT stores the current deannualised annual leave entitlement.

   The previous year's annual leave entitlement variable CM VR PRV ENT stores the previous deannualised annual leave entitlement.

3. The duration CM DR YR OF SERV returns the years of service (number of years between the service date SERVICE DT and the pay period end date PERIOD END DATE).

4. The formula ALV FM PREV ACCM returns the previous year's balance (system variable PREV VALUE ACCM) and is used in the accumulator initialize rule.

5. The annual leave balance accumulator ALV STAT ENT_BAL is carried forward to the new annual leave accumulator.

   Whenever the accumulator begins, the previous accumulator balance is brought to the current balance (new accumulator period).

6. The formula ALV FM STAT FORFEIT returns the forfeited units that are eventually reduced from the annual leave balance accumulator.

7. The generation control ALV GC ANNIV MTH controls the entitlement by resolving only when the employee's anniversary month equals the pay period month.

8. The formula ALV FM ANNIV MTH resolves when GP PRD END DATE MO (variable that stores the mm part of the pay period end date) equals CM VR ANNIVMTH (variable that stores the payee's mm part of the hire date) and the employee is not hired in the current pay period.

9. The variables CM VR ANNIV MTH and CM VR ANNIV DT specify the accumulator's begin date.

   All accumulator periods are YTD and begin to accumulate from the employee's hire date.