Understanding Long Service Leave

In Australia, many companies provide employees with leave time after the employee completes a long period of service to the company. Typically, employees begin accruing this leave when they begin employment, but the leave is not available until the employee completes between seven and fifteen years of service. When the employee meets the initial time-of-service requirement, the accrued leave time rolls over, and becomes available to the employee. In addition to the initial rollover that occurs between seven and fifteen years of service, additional rollovers typically occur after the employee completes each additional five years of service.

The system can track the LSL accrual, including gaps of service that might occur due to events such as maternity leave or a sabbatical. After the specified date, employees are entitled to this leave time regardless of whether they stay with the organization. You can use the program (P75A670) to adjust specific dates.

To ensure that accrued LSL hours become available at the correct time, you must enter LSL records for each employee in the organization. You use the Long Service Leave Management program (P75A670) to enter, update, and review employee LSL data. When you enter LSL records, the system creates records in these tables:

• Long Service Leave Dates (F75A670).

• Long Service Leave Audit (F75A671).

In addition to entering LSL records, you must also:

1. Set up accruals to calculate long service leave time.

2. Set up rollover tables to specify when long service leave becomes available.

After you enter LSL records and set up accruals, you must process rollover information. To ensure that each employee's rollover occurs at the correct time, you should process rollover information during each payroll cycle. When an employee reaches a rollover date during the payroll cycle, the system generates the Leave Balance Rollover report (R073910) during final update. You can review this report to verify that the rollover information is accurate.