Leave entitlements

When managing leave entitlements, the first step is to create the entitlement and establish the rules for how it accrues, is calculated, and is managed by the employee. 

You need to determine the accrual rate, the hours during which the leave entitlement accrues, and whether it is reportable, among other variables. 

Once a leave entitlement type is set up, it can be applied to your employees to commence accruing. 
 

To set up a new leave entitlement:

1. Navigate to the main menu and select Payroll Settings > Leave Configuration. 
2. Select + Create.
3. Configure your new leave entitlement with the following fields:
   • Entitlement Settings
     • Title - The title will be displayed everywhere the entitlement is visible. This includes payslips & within the employee app.
     • Paid entitlement - Enable this toggle to pay employees for this leave entitlement. Leave the toggle disabled for non-paid entitlements.
       Annual leave, personal leave, and long service leave are all examples of paid entitlements. Leave without pay is an example of a non-paid entitlement.
     • Accrual Value (hours) -  The rate at which this entitlement accrues per hour of work. 
     • Accrual per - Which hours does this leave entitlement accrue on? 
       • Ordinary Hour Worked - Accrues only on ordinary hours (does not include overtime). 
       • Every Hour Worked - Accrues on ordinary hours and overtime.
     • When leave is taken
       • Do nothing - This entitlement will not accrue on any other entitlements, only hours worked.
       • Accrue on all entitlements - This entitlement will accrue on hours worked and all entitlements.
       • Accrue on this entitlement - This entitlement will only accrue on hours worked and this entitlement. Not any other entitlements.
     • Variables on Cashing, Variables on Termination, Variables on Leave Application
       • Workers Compensation - This will be calculated with this entitlement included.
       • Payroll Tax - This will be calculated with this entitlement included.
       • Public Liability - This will be calculated with this entitlement included.
       • Margin (Normal)
       • Superannuation – Marks the entitlement as part of Qualified Earnings, meaning it will be included in the earnings total used to calculate superannuation.
       • Leave Loading - Will be paid on this entitlement. 
     • Pay on termination - Enabling this toggle lets you select the ATO category during the termination workflow. 
     • Reportable Leave Type - This determines how the entitlement will be reported through STP.  
       • Other Paid Leave - Select this if none of the below is appropriate for the entitlement. 
       • Paid Parental Leave
       • Workers Compensation
       • Ancillary and Defence leave
       • Time off in lieu
   • Employee Leave Application Settings
     • Can an employee apply for this leave type?
       • Yes - An employee can apply for this leave anywhere on the platform (time off, submit shifts, timesheets). If you wish your employees to be able to apply for this leave entitlement, please select this option.
       • No - This is an admin-only leave entitlement, meaning only admins can apply it to the employee from anywhere on your platform.
     • Leave type can be assigned to a casual employee - Enable this toggle to allow it to be assigned to casuals (e.g., LWOP, Casual LSL, etc.).
     • Allow file upload - Enable this toggle to allow supporting documentation to be uploaded with the leave request or attached to a shift in Approve shifts.
       • No. of leave  days taken for file upload to be required
         • Off - File upload is enabled for the leave entitlement but is not mandatory.
         • Always Mandatory - A file must be uploaded with the leave request.
         • 1 - 6 - The number of days a leave application must be submitted to enforce a file upload with the leave request.
       • File upload is mandatory if leave falls on - Select from the days of the week. This option will override the settings of No. of leave days taken.
   • Applying Entitlement to Employee Settings
     • Apply to New full-time and Part-time employees - When adding a position to a new permanent employee, a prompt will appear to add entitlements. Selecting 'yes' will add this entitlement and any others with this toggle on.
     • Apply to Existing Full-time and Part-time employees - When saving this entitlement, it will be added to all existing permanent employees.
     • Apply to New Casual Employees - This option is only available with non-paid entitlements. When adding a position to a new casual employee, a prompt will appear to add entitlements. Selecting 'yes' will add this entitlement and any others with this toggle on.
     • Apply to Existing Casual Employees - This option is only available with non-paid entitlements. When this entitlement is saved, it will be added to all existing casual employees.
   • Operation Settings
     • Invoice Operation - Available for paid entitlements only. When leave is taken, it will be invoiced per your charge rates in the operation rates book. 
     • Payslip Settings 
       • Show leave balance on payslips - Enabling this toggle will display the accrued balance of this leave entitlement on the payslip. 
         
           Hot tip: If this is disabled, employees will not see the balance in the employee portal or app. This is commonly done for personal leave.
          
       • Show leave redeemed on payslips - Enabling this toggle will display the amount of leave taken on the relevant payslip.
4. Select 'Save' to apply your changes.

  Hot tip: You can quickly see the type of leave entitlement by hovering over the coloured icon in the list, i.e., Paid, Unpaid or Award-based leave. 

At any time, you can update existing leave entitlements. Some use cases may include:

• To hide leave balances from your employees
• Promote mandatory file uploads for personal leave (medical certificates)
• To apply it automatically for new employees

However, before editing existing leave entitlements, you should take into consideration:

• Non-paid leave entitlements cannot be edited to become paid entitlements. In this instance, creating a new paid leave entitlement will be the best option. 
• Paid entitlements can be changed into non-paid entitlements, but the change is irreversible. 

To edit an existing leave entitlement:

1. Navigate to the main menu and select Payroll Settings > Leave Configuration.
2. Locate the existing leave entitlement and select the vertical ellipsis > Edit.
   
   

3. Edit the details of your entitlement to suit. Please refer to the "Set up a new entitlement" section above for details on what each field means and does.

   

4. Select Save.

Archiving lets you deactivate a leave entitlement while preserving all historical data, including past applications, balances, and payslip records. 

Since a leave entitlement cannot be deleted once used, archiving allows you to clean up your leave entitlement list and retire any that are no longer in active use.

You would typically archive a leave entitlement in the following cases:

• The leave entitlement is no longer offered (e.g. a discontinued bonus leave or a one-off entitlement that's run its course)
• You're replacing it with a redesigned version (e.g. changing accrual rules significantly), archive the old one and create a new entitlement rather than overhauling it in place
• It was set up in error or duplicated, and you want it out of employees' view without losing any data already recorded against it
• You're tidying up your leave entitlement list ahead of a platform review, without wanting to lose reporting history

  Please note: Award-based leave entitlements such as RDO or TOIL cannot be archived. 

To archive a leave entitlement:

1. Navigate to Payroll Settings > Leave Configuration.
2. Locate the leave entitlement, select the vertical ellipsis to the right, and then select Archive.
   
   

3. You'll see a confirmation window outlining the following:

   • Leave entitlement can't be added to employees or used for new applications
   • Existing applications, including pending ones, can still be processed and paid
   • Accrued balances are frozen and remain on employee profiles
   • You can restore this leave type at any time

   • Whether any employees have the leave entitlement assigned
     
     

       Hot tip: If the leave entitlement you are archiving has employees assigned, you can confirm the list of employees using the People Menu Export before archiving. Information on using this export is in the 'Leave entitlement reporting' section below.

4. Once you have confirmed the above and selected Archive, the leave entitlement will show a grey icon on the Leave Configuration page. 
   
   

  Please note: Once archived, the leave entitlement will remain on the employee profile; accrued balances are frozen and will be displayed in grey with an 'Archived' badge. Archived entitlements cannot be edited in the employee profile; they must first be restored via the Leave Configuration page.

Restoring an archived leave entitlement

Restoring an archived leave entitlement returns it to your active leave list with all its original settings, accrual rules, and assigned employees intact; nothing needs to be reconfigured! 

Any employees who had the entitlement assigned before it was archived will regain visibility and access once it's restored.

To restore an archived leave entitlement: 

1. Navigate to Payroll Settings > Leave Configuration.
2. Locate the archived leave entitlement by selecting the Archived filter in the top-right corner, then select Restore.
   
   

You may find that your leave entitlement has been assigned to the wrong STP category and would like it corrected. If this is the case, users with the relevant permission will have access to change the STP category assigned to leave items, pay items, allowances and deductions.

Before you start, please consider that STP category changes, once made, will affect:

• The full financial year that is selected 
• All payslips for all employees

  Please note: Only users with the permission 'Manage STP Categories' can make changes to STP categories, as this will move all of your reportable data to a new STP reporting category.
 

To change the leave entitlement STP category:

1. From the main menu, navigate to Payroll Settings > Leave Configuration. 
2. Locate the existing leave entitlement and select the vertical ellipsis > Change STP category.
   
   
3. In the drawer, make the following selections:
   • New STP category - All choices relevant to ATO leave categories will be displayed in the drop-down box.
   • Apply change beginning from - This change will apply to the entire selected financial year.
   • Preview related payslips - Engage the toggle to view all related payslips where this STP category change will be reflected.
     
       Hot tip: Updating the STP category will affect employees' ATO data. Please ensure you are aware of the implications when performing this action. The blue ATO badge will link you directly to ATO guidance on STP reporting.
4. Once your selections are finalised, select the Apply Change button.

You'll now see your changes registered in the STP category column (refresh your browser to view them).

Entitlements that are used under specific circumstances (e.g. Paid Parental Leave, WorkCover) or on a case-by-case basis (e.g. bonus annual leave) should be added to employees individually. 

  Please note: Leave entitlements will start accruing from the first pay period in which they are assigned to an employee's profile; remember to reprocess any draft payslips. Balances will not be backdated to the start of employment.
 

To add a leave entitlement to an individual's profile:

1. Locate the relevant Employee Profile via Approved People or via the global search bar. 

2. Navigate to the Employee Card > Employment Type > and select + Entitlement.

   

3. From the drop-down menu, select the relevant leave entitlement (e.g. Paid Parental Leave).
4. Update the accrued amount to set the employee's starting balance (if not starting at zero).

5. Either leave the default settings or override these if required. 

   

6. Select Add & Review Entitlement. 
7. At this stage, you can assign more leave entitlements by repeating steps 3 - 6.  
8. Select Save.

9. Reprocess any draft payslips to which this leave entitlement may apply. 

   

  The process for adding entitlements to casual employees is very similar. If you would like specific information about applying leave entitlements to a casual employee, please see our Managing Casual Leave / Entitlements article. 

When setting up a new leave entitlement, or even editing it, it may be preferable to apply it to your employee profiles in bulk (i.e. setting up a bonus leave entitlement or LWOP); however, there are a couple of important things to consider. 

• Only non-paid entitlements can be applied in bulk to casual employees.
• Entitlements can be applied in bulk only to permanent or casual employees. You are unable to select a mixed group of employees to apply entitlements to.
   

To apply entitlements in bulk:

1. From the main menu, navigate to Payroll Settings > Leave Configuration.
2. Locate the existing leave entitlement and select the vertical ellipsis > Edit for the entitlement you'd like to apply in bulk.
    

3. In the Applying Entitlement to Employees Settings section, enable the toggle/s for:

   • Apply to Existing Full-time and Part-time employees
   • Apply to Existing Casual employees (non-paid entitlements only)

   

4. Select Save
5. The entitlement will now be added to all the permanent and/or casual employee profiles, with a balance of 0 hours.  Please refer to the "Update leave entitlement values in bulk" section below to update employee leave balances. 

For employees with specific contractual agreements, several options are available to customise leave entitlements on their profiles. This is beneficial because it eliminates the need to create a new leave entitlement for each individual employee.

Settings that can be applied per leave entitlement on an employee's profile include:

• Accrues per (Ordinary Hour Worked or Every Hour Worked)
• Accrues at (rate per hour)
• Leave loading percentage

Before you customise or override an employee's entitlements, consider whether it is necessary. If you are editing the following items for more than 1 employee, it may be worth creating a new leave entitlement instead. 

For example, if some of your employees are entitled to 5 weeks of annual leave while others are entitled to 4 weeks, creating a second entitlement will be a better solution. 
 

To configure the leave entitlements for an individual employee:

1. Navigate to the employee profile > Employee Card > Employment Type and select the edit icon (pencil) on the entitlement you'd like to override.
2. Make your edits. The following fields are available to edit by default:
   • Leave balance - The employee's current accrued leave balance. 
   • Minimum accrual - The minimum amount (hours) an entitlement will accrue against on a payslip, regardless of hours worked.
     
     For example, if this field is set to 20 hours and an employee works 10 hours. The employee's payslip will apply the same amount of leave accrual as if they had worked 20 hours. 
      
     • This field is 'per payslip'. If you pay per fortnight and set this field as 20 hours, this will set a minimum for the entire fortnight. 
   • Accrual limit - The maximum amount (hours) an entitlement will accrue against on a payslip, regardless of hours worked.
     
     For example, if this field is set to 20 hours and an employee works 30 hours. The employee's payslip will apply the same amount of leave accrual as if they had only 20 hours. The remaining 10 hours will not accrue leave. 
     • This field is 'per payslip'. If you pay per fortnight and set this field as 20 hours, this will set a maximum limit for the entire fortnight. 
       
       
3. To customise the entitlement further, select from the toggles below to enable more options:
   • Allow negative leave balances - Enabling this toggle will allow your employee to be paid for the entitlement in excess of what they have accrued.
     • Once enabled, you can set an hour cap in the 'Cap employees negative balance at' field.
       
       For example, if an employee submits a leave application for 20 hours but has only a balance of 10 hours. 
       • No cap is specified - Once approved, the employee's payslip will pay 20 hours of leave. 
       • A -5 hour cap is specified - Once approved, the employee's payslip will pay 15 hours (10 accrued + 5 capped). The remaining 5 hours will be unpaid. 
   • Override accruals - This toggle will enable you to update the following:
     • Accrues p/hr. - Override the default and apply a new per-hour accrual rate for the entitlement. 
     • Accrues on - Select if this leave entitlement accrues for:
       • Ord hrs. - Only accrues on ordinary hours worked. 
       • All hrs. - Accrues on ordinary and overtime hours worked. 
   • Override Pay Rate - The pay rate (excluding leave loading) at which this entitlement will be paid.
     • Once enabled, set the new rate in the 'Custom pay rate' field.
     • If left disabled, the entitlement will be paid at the employee's base rate in the primary position. 
   • Override leave loading - This toggle will enable you to update the following:
     • Leave loading - The loading percentage applied to this entitlement. The value input here will be used instead of the loading rate applied in the award. 
     • STP reporting set as "Other Paid Leave" - For leave entitlements assigned to the STP category 'Other Paid Leave', you can specify how the loading is to be paid.
       • Other Paid Leave - Leave loading is paid out as an additional payment with leave. Superannuation will also apply.
       • Overtime - Leave loading is paid out as overtime; as such, superannuation will not apply. 
         
           Hot tip: The STP reporting set to the "Other Paid Leave" setting will automatically be available for any leave entitlements that include leave loading in their Leave Configuration (e.g., Annual Leave). 
4. To save, select the green tick.

Hot tip: You can also edit or update most of these settings in bulk. Please refer to the section below titled 'Update leave entitlements in bulk' for the steps.

The accrued value of any leave entitlement can be updated on your employees' profiles. This method is best if you need to update the entitlement value of a single employee or for casual employees.
 

How to edit an employee's leave entitlement value: 

1. Navigate to the employee profile > Employee Card > Employment Type.
2. Below the employee positions, you will find all the entitlements applied to the employee.
3. Select the edit icon against the entitlement you'd like to update.
4. Add the correct leave balance, then select the green tick to save. 

You can easily update the leave balances and settings for all your permanent and salaried employees using a single CSV import. This process allows you to manage the leave entitlements linked to their profiles in bulk.

Updating entitlements in this way can be especially useful for several scenarios, including:

• Annual reset of entitlements that do not accrue (e.g. Compassionate leave).
• Transferring employees from another platform. 
• Adding any bonus leave. 
• Enabling negative leave or capping leave in bulk. 

If you need to update entitlement values for casual employees, please refer to the section above. 

  Please note: Using this method, you can update most fields in an employee's leave entitlement except for 'Accrues on (Ordinary Hour Worked or Every Hour Worked)'.
 

To update leave entitlements in bulk:

1. Navigate to the main menu > Import/ Export > CSV Import > then select Employee Entitlements from the drop-down menu.
2. Select Export Current Entitlements and update the required fields. Refer to the Data Validation section below for details of the fields you can edit. 
3. Save your CSV file.
4. Back in foundU, select Choose file and select your updated CSV.

5. Select Import CSV.

   

6. The import tool will have updated the entitlements as per your edits. You can navigate to an Employee Profile to see the individual changes.
    

Data Validation

When importing data into foundU, it must be in the correct format. Below, you will find all the information required about the columns included in this import and the formats accepted for editable data. 

  Please note: The bold rows in the table below denote editable columns in your export. 

When it comes to reporting your employee's leave entitlements, you have a handful of options at your disposal. Take your time exploring these choices, as they can help you understand what your employees are entitled to and how to access that information easily.

The key reports available for your use are:

• CSV Export / Import

  • This export will provide all entitlements for all non-casual employees. Use this export to update entitlements (accrued values, allow negative accruals, etc.). 
    
    
     
  • An example of the export would look like the one below. You'll now have the option to make changes and reimport should you wish to.
    
    
    
    For more information regarding this import, please refer to the 'Update leave entitlement values in bulk' section above. 
• People Menu Export
  • You can export the balances for all of your employees' leave entitlements directly from the People menu. 

  • Additionally, using the filters, you can export for specific groups or individual employees.

    

      Hot tip: If this is a report you'll need to run regularly, save it for easy access next time! In the bulk export menu, after selecting your required fields, select 'additional options' to save your report. 

• Leave Activity & Balance Reports
  • Leave liability and leave movement can be reported on through the Leave (New) Report. 
  • The leave liability report can be used to determine the amount of leave owed to employees on a specific date. It can accurately show past and present leave owed and predict future leave owed.
  • The leave movement report can be used to highlight any movement or changes to entitlement balances.
  • Both the leave liability report and leave movement report include an 'Include archived leave types' checkbox. Enable this checkbox to include archived leave entitlements in your results or leave it unchecked to view active leave entitlements only.
    
    
    
      Please note: The Leave Activity & Balance Reports can pull data from 1 January 2024. If you require data from before this time, please use the previous existing leave reports. 
     

Other Leave Reports 

If you need to see data before January 1, 2024, or your platform does not yet have access to the new Leave Reports, you'll find the existing Leave Reports helpful.

• Report for Leave Movement before Jan 1 2024.
• Leave Liability & Leave Paid before Jan 1 2024.

Is there a way I can hide Personal Leave balances from my employees?

Yes! You can edit Personal Leave's rules by toggling on the 'Show leave balance on payslips' setting.  Once this setting has been turned on:

• Employees will not see Personal Leave accrual or balance on their payslips. 
• Employees will not see their Personal Leave balance when applying for Time Off. 
• Employees can still apply for Personal Leave and are informed when their leave is insufficient; however, no current or estimated balances are provided. 

How can I ensure my employees are providing a medical certificate when applying for leave?

Leave entitlements can be configured to require your employees to upload a file when submitting a leave application. This can be set to apply:

• For all leave applications.
• When a leave application covers x number of days (e.g. 2 or more days).
• When a leave application falls on a specific day of the week (e.g. Monday or Friday). This setting will take priority.
  
  For example, if a leave application is set for a single day but that day falls on a Friday. Even though the leave application is for less than 2 days and the requested day is a Friday, the employee will be required to upload a file. 

This can be turned on per leave entitlement by toggling the 'Allow file upload' setting, then selecting the required options in the 'No. of leave days taken for file upload to be required' and 'File upload is mandatory if leave falls on' fields. 

Can we enforce a medical certificate or another way to track when an employee calls in sick for a Public Holiday?

If you are looking for a way to track and manage employee absences for public holidays, there are 2 options:

• You can set up specific leave entitlements (Personal Leave) to require a file upload; see question above. As a public holiday approaches, you can update your entitlement's leave configuration (rules) by selecting the holiday date and marking it as mandatory.
  
  For example, if ANZAC Day falls on a Wednesday, you would set Wednesday as mandatory (and the day after as well).
  
  After the public holiday has passed, remember to update the entitlements leave configuration (rules).
• You can set up a unique attendance code (e.g. Public Holiday - Called in Sick) and apply this code for shifts that are declined on a public holiday (or the day after). This will allow you to track any regular absences using the  Attendance & Performance Report.

Can I update my Casual Employee leave balances in bulk? Why can't I see my Casual Employees in the Leave Entitlements import?

Unfortunately, only unpaid leave entitlements can be applied to casual employees in bulk. As a result, leave balances for casual employees cannot be updated in bulk and will not show up in the Leave Entitlements import CSV.

It is recommended to assign leave entitlements to casual employees when adding a new position, to ensure they accrue with each payroll cycle.

How can I manage Compassionate Leave?

Unlike other leave entitlements, Compassionate Leave does not accrue based on hours worked; instead, the available balance resets per year. Since this type of leave does not accrue, it is typically applied to the employee's profile on an ad-hoc basis. The balance will not automatically reset for the employee each year.

This means that when an employee's circumstances require Compassionate Leave, it must be added to the employee's profile before a leave application can be submitted. 

To summarise this process:

• Employee notifies manager they need to redeem Compassionate Leave.
• The manager adds Compassionate Leave and balance to the employee's profile. 
• Leave application is sent and approved in Time Off. 

How can I manage Long Service Leave (LSL)?

  Please note: LSL rules can vary by state; check your state or territory's government website for specific details. 

LSL is a unique leave entitlement, as it has a waiting period during which it must accrue for both casual and permanent employees before an employee becomes eligible to redeem it.

As such, when managing LSL in your platform, there are a few key considerations:

• Leave entitlements begin to accrue from the first pay period to which they have been applied to an employee's profile, and balances do not backdate. 
• LSL does not automatically change in an employee's profile when they become eligible to redeem. 

By default in your platform, you will have 3 LSL types:

• LSL (Under 7/10 years) - This leave entitlement is used just to accrue against the employee's profile. This leave entitlement will not appear for the employees at all, nor can they submit leave applications for it. 
• LSL (Over 7/10 years) - This leave entitlement is used when an employee is eligible to redeem their LSL. Employees with this leave entitlement can view and submit leave applications. 
• LSL (Over 15 years) - This is an additional LSL accrual; it can be applied to employees who receive additional LSL after 15 years. Employees with this leave entitlement can view and submit leave applications. 

 To manage an employee's LSL:

1. Assign the LSL (Under 7/10 years) to their profile to commence accruing. 
2. Set a milestone reminder to inform you when an employee reaches their LSL threshold.
3. When an employee is eligible to redeem their LSL:
   • Add LSL (Over 7/10 years) to their profile.
   • Add the balance from the LSL (Under 7/10 years) to the LSL (Over 7/10 years) leave entitlement.
   • Delete the LSL (Under 7/10 years) leave entitlement. 
4. If your employee is eligible for additional LSL accrual after 15 years, add the LSL (Over 15 years) leave entitlement to their profile. 

Do leave entitlements accrue across multiple positions? If so, which position is leave paid from?

Once a leave entitlement has been added to an employee's profile, it will start accruing for all hours worked.

For example, if your Annual Leave entitlement is set to accrue on ordinary hours worked, it will accrue for all ordinary hours worked in all positions.

When redeeming a leave, the rate at which the employee is paid will be:

• For permanent employees - The rate set in their primary position.
• For casual employees - You will need to select the relevant position when adding leave entitlements to an employee's profile, and all leave will be paid from this rate.

Why aren't leave entitlements showing on my employee's payslips?

This can happen for 2 reasons:

• The leave entitlement has been deliberately hidden on the payslip. This can be set up per leave entitlement using the 'Show leave balance on payslips' setting. See above for more information.
• The leave entitlement hasn't been added to the employee's profile.

We recommend adding leave entitlements when setting up your employees' profiles for the first time, as they start accruing from the first pay period after they are assigned to an employee's profile. Balances are not backdated to the start of employment.

If you have employees with leave entitlements missing from their profiles, you will need to calculate their current leave balance.

To do this:

1. Add any missing entitlements to the employee's profile.
2. Check the following:
   • The accrual rate for the entitlement (if it accrues).
   • Whether the entitlement accrues on Ordinary Time hours or all hours worked.
   • If the entitlement accrues when other leave entitlements are redeemed.
3. Use the Advanced Payroll Activity Report (APAR) to determine the total hours leave accrues on. This can include paid leave, Ordinary Time, or Overtime, depending on the entitlement's setup.
4. To determine the employee's accrued leave balance: multiply the total hours calculated by the accrual rate.
5. Add the balance to the employee's profile and reprocess any draft payslips to update.

For example, Stuart hasn't been assigned Annual Leave in his profile. What is his current balance?

• Annual leave has an accrual rate of 0.0769.
• From the APAR, 200 hours have been calculated.
• Leave balance: 200 x 0.0769 = 15.38 hours.

You can add 15.38 hours to Stuart's profile and reprocess his draft payslips.

What are Qualified Earnings and how do I check if a leave entitlement is included?

Qualified Earnings (QE) are the earnings used to calculate an employee’s superannuation guarantee (SG) under Payday Super (effective July 1, 2026).

QE generally includes:

• Ordinary Time Earnings (OTE), such as payments for ordinary hours, paid leave, allowances, bonuses, and some lump sum payments
• Commissions
• Salary sacrifice amounts that would otherwise be considered QE
• Payments to certain contractors who are classified as employees for super purposes

Leave entitlements are automatically mapped for QE. Their inclusion in QE can be configured differently for each payment method (e.g., unused leave on termination, cashing out, or leave applications).

For leave entitlements set up before July 1, 2026, they are already included in QE. However, you can confirm this using the steps below.

To check if a leave entitlement is included in QE:

1. Navigate to main menu > Payroll Settings > Leave Configuration.
2. Edit the relevant leave entitlement.

3. Check the payment methods for Termination, Cash Out, and Leave Applications to confirm if Superannuation is included as a variable.

   

If Superannuation is enabled, the entitlement will be included in Qualified Earnings and form part of the earnings total used to calculate superannuation.

  To determine if a leave entitlement should be included in Qualified Earnings, please refer to this article by the ATO. 

Can I delete a leave entitlement instead of archiving it?

No. Once a leave entitlement has been used (i.e. applied to at least one employee, shift, or payslip), it cannot be deleted. Archiving is the correct way to retire a leave entitlement from active use while preserving all historical records.

What happens to employees who currently have an archived leave entitlement assigned to them?

Once archived, employees will no longer see the leave entitlement in their employee app, and it can't be added to new employees or used for new applications. Employees with existing applications, including pending ones, can still be actioned and paid. 

Can I still report on an archived leave entitlement?

Yes. Archived leave entitlements can still be included in reporting. Use the 'Include archived leave types' checkbox on the Leave Movement and Leave Liability reports, or the 'Show archived leave types' toggle in the display settings of the Leave Activity and Balance reports.

Can I get an archived leave entitlement back?

Yes. Archived leave entitlements can be restored at any time. Navigate to Payroll Settings > Leave Configuration, select the Archived filter in the top-right corner, locate the leave entitlement, and select Restore. It will return to the active list with all original settings, accrual rules, and assigned employees intact.