Configuration of Paid Family and Domestic Violence Leave
As of the 1st of February 2023, all full-time, part-time, and casual employees of non-small business employers (15 or more employees) will be able to access 10 days of paid family and domestic violence leave in a 12-month period. Small business employers (Less than 15 employees) will need to implement this by 1st of August 2023.
The full 10-day leave entitlement is to be available upfront and will not accumulate from year to year if not used. This replaces the previous unpaid 5-day entitlement.
Below are two different options to implement this new leave type in accordance with the updated additional requirements published on 3rd February 2023.
Important Note: The below are examples only of how to configure within Definitiv. We understand that privacy in relation to this leave is important and you should use your judgment as to how you appropriately name your Pay Items and/or Accrual Types when accessible or visible to your employees.
Option 1 (Recommended) - Leave Reason in Other Leave Accrual Type
Add Pay Item
Go to Admin, Structure, Pay Items, Payment Category.
Create a Payment Pay Item.
It is necessary to create this as a payment pay item so it can be merged into another payment pay item, such as Ordinary Time.
This is done by completing the new Payslip Display Name field. Which is shown when you check Show on Payslip. You will also need to ensure the Unit of Measure and Roll-up Mode match the code you are using to merge into. FDVL must be reported in STP to align with how you show these amounts on the employee's payslip.
Add Leave Reason
Go to Admin, Configuration, Accrual Types.
Edit the Other Leave Type.
Select the Add New Reason button.
Add the Paid Family and Domestic Violence Leave reason. You can choose to abbreviate the reason for privacy however please ensure you communicate this to your employees internally.
Update Award Policies
Please note that awards are built catering to your company’s specific circumstances, and any screenshots provided below are only an example, and your configuration may look different. Please do not update any parameters which are not directed to in the below instructions.
If you have a test environment, we recommend setting this up first.
Navigate to the current version of your award/s.
Look for a clause called Other Leave, ensuring it is a paid leave type.
Create a new version of the award effective from 01/02/2023.
Update the Other Leave clause to Apply to Leave Reasons.
Select all Leave reasons except the new Paid FDVL reason.
6. Copy the clause called Other Leave.
7. Update the clause description.
8. Update the clause to the Apply to Leave Reason to only contain Paid FDVL, and update the Add Pay Item to the newly created Pay Item.
If Shift Penalties are paid
Find any clause/s where penalties are calculated for Ordinary Time (Repeat these steps if more than one clause). Copy the clause.
Update the clause description.
Update the clause that says Timesheet Type is Timesheet Hours.
Save the Award Version.
Note: You will need to monitor the leave reason to ensure the 10-day entitlement is not exceeded for the anniversary year.
Option 2 – New Accrual Type
Add Pay Item/s
Go to Admin, Structure, Pay Items, Payment Category.
Create a Payment Pay Item.
It is necessary to create this as a payment pay item so it can be merged into another payment pay item, such as Ordinary Time.
This is done by completing the new Payslip Display Name field. Which is shown when you check Show on Payslip.
You will also need to ensure the Unit of Measure and Roll-up Mode match the code you are using to merge into.
FDVL must be reported in STP to align with how you show these amounts on the employee's payslip as Admin, Structure, Pay Items, Accrual Category (Optional).
Create an Accrual Pay Item
Go to Admin, Configuration, Accrual Types, Add New Accrual Type.
Complete the relevant fields. Balance visibility can be set as you require, there is no requirement for the accrual to be shown only that the employee has access to the paid leave.
Add/Update Leave Policy
Go to Admin, Policies, Leave Policies
If you wish to hold an accrual against these leave types, then add a new Leave Policy.
Create it as an upfront Leave Grant and only enter the initial grant value. We do not recommend setting the repeating field as the accrual is not cumulative.
Assign Leave Policies
Unlike other accruals, you only enter the Leave Policy in the employee Masterfile. Ensure you date existing employees as Commencing and Effective Date of 01/02/2023.
This can be done in bulk via the Employee Workbook in Admin, Miscellaneous, Data Import, Employee Data Tab.
Update Award Policies
Please note that awards are built catering to your company’s circumstances, any screenshots provided below are only an example and your configuration may look different. Please do not update any parameters which are not directed to in the below instructions.
If you have a test environment, we recommend setting this up first.
Navigate to the current version of your award/s.
Create a new version of the award effective from 01/02/2023. Add a new clause for the new Leave Type.
You will also need to check any clauses where the hours are tagging for Overtime purposes.
Example:
If you added an accrual
You will need to conduct a review to top up any employees who have utilised this leave throughout the year back up to 10 days accrual on their anniversary.
If you did not add an accrual
You will need to monitor the leave type to ensure the 10-day entitlement is not exceeded for the anniversary year.
Note: Due to privacy reasons you must display the Leave as another pay item such as:
(i) for the performance of the employee’s ordinary hours of work; or
(ii) as another kind of payment made in relation to the performance of the employee’s work, including (but not limited to) an allowance, bonus, or payment of overtime.
Because of this requirement Estimated Leave Hours will always display as a zero (Ie paying to a non-leave code)
Payslip
Even though the transaction is shown in the calculation.
The Payslip is produced with the Payslip Display Name you entered.
