Calculating Annual Leave

This topic provides an overview of annual leave calculations, and discusses how to:

  • Calculate annual leave by pay period.

  • Calculate annual leave at every anniversary.

Every employee who has worked for at least 3 months is entitled to pro rated annual leave. The entitlement is based on working days (and not calendar days). We provide two absence entitlements for the calculation of annual leave entitlement. The first entitlement—ANN GENL ENT—calculates leave on a pay period basis. Leave entitlement is based on the years of service within the company. Pro rata leave entitlement is calculated at every pay period and added to the balance. This process also verifies that the total leave does not exceed beyond a particular holding.

The other annual leave entitlement—ANN STAT ENT—is calculated at every anniversary for the employee. The total entitlement is based on the years of service and the number of accrual days is based on the values that are set in a bracket. This leave entitlement does not check for maximum balance carryover into the next anniversary year (for the employee).

Note: There is no fixed legislation to carryover entitlements. Generally, leave balance from one year cannot be carried over for more than two years. In some cases, restriction also applies on the number of days that can be accrued at each quarter. For example, if the number of days in the first year of service was 10, then a maximum of 3 must be used within the first quarter—otherwise, the 3 days are forfeited.

The annual leave entitlement—ANN GENL ENT—using formula ANN FM GENL ENT (with generation control ANN GC ELIG STS) calculates leave on a pay period basis (returning the monthly annual leave entitlement during the monthly accrual process). The leave entitlement is based on the years of service within the company. Pro rata leave entitlement is calculated at every pay period and added to the balance. This process also uses formula ANN FM MAX ADJST to verify that the total leave does not exceed beyond a particular holding.

The ALV FM GENL ENT formula resolves as follows:

  1. The annual leave entitlement value is retrieved from bracket ANN BR GENL ENT. This annual leave bracket defines the entitlement an employee can earn in each year of service. The bracket is used while calculating the entitlement on a per pay period basis. The bracket search keys and return column values are as follows [after the completion of (x) years of service, an employee is entitled to (x) days of leave]:

    Years Of Service (LVE DR YR OF SVC)

    Days Of Leave (ANN BR GENL ENT)

    1st

    7

    2nd

    8

    3rd

    9

    4th

    10

    5th

    11

    6th

    12

    7th

    13

    8th (and thereafter)

    14

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

    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 up and returned.

  3. The current year's annual leave entitlement variable ANN VR CURR ENT stores the current deannualised annual leave entitlement.

    The previous year's annual leave entitlement variable LVE VR PREV ENT stores the previous deannualised annual leave entitlement.

  4. The formula CM FM PREV ACCM returns the previous year's accumulator balance variable PREV VALUE ACCM (to add to the current new year accumulator balance) and is used in the accumulator initialize rule.

  5. The entitlement adjustment unit formula ANN FM MAX ADJST calculates the maximum carry over entitlement of annual leave. This carry over adjustment is executed at every pay period and the adjustment reduces the entitlement. The formula looks up the current and previous year entitlement and checks if the cumulative entitlement is over the next year (of service) entitlement.

  6. The annual leave balance accumulator ANN 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).

    The variables, ANN VR ANNIV MTH (begin month) and ANN 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. Generation control ANN GC ELIG STS identifies active employees who have completed the probation period at the end of the pay period that is being calculated. This generation control is only attached to the annual leave entitlement. The generation control uses formula ANN FM ELIG which verifies if the period end date is beyond the eligibility date. This formula validates the annual leave entitlement for the employee.

  8. The takes day formula ANN FM TAKE UNIT calculates leave for employees. Based on the schedule hours and holiday type, a unit of 1 or 0 is returned to the formula.

The annual leave entitlement—ANN STAT ENT—is calculated at every anniversary for the employee. The total entitlement is based on the years of service and the number of accrual days is based on the values that are set in bracket ANN BR STAT ENT. This leave entitlement does not check for maximum balance carryover into the next anniversary year (for the employee). The accrual process runs once for every 12-month period from the employee's hire date. The annual leave entitlement ANN STAT ENT, using formula ANN 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 ANN FM STAT ENT formula resolves as follows:

  1. The annual leave entitlement value is retrieved from bracket ANN BR STAT ENT. This annual leave bracket defines the entitlement an employee can earn in each year of service. At the completion of a full year of service, the entitlement is calculated based on the total years of service in the company.

    The bracket search keys and return column values are as follows:

    Years Of Service (LVE DR YR OF SVC)

    Days Of Leave (ANN BR GENL ENT)

    1st

    7

    2nd

    8

    3rd

    9

    4th

    10

    5th

    11

    6th

    12

    7th

    13

    8th (and thereafter)

    14

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

  3. The current year's annual leave entitlement variable ANN VR CURR ENT stores the current deannualised annual leave entitlement.

    The previous year's annual leave entitlement variable LVE VR PREV ENT stores the previous deannualised annual leave entitlement.

  4. The formula CM 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 ANN 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).

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

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

  6. The takes day formula ANN FM TAKE UNIT calculates leave for employees. Based on the schedule hours and holiday type, a unit of 1 or 0 is returned to the formula.