Average Hours Payment Rule

The Average Hours Payment Rule assists defining a formula to use applicable average hours types (i.e. legislative averages) as stipulated in respective leave legislations to use for leave payment using average hours.

The criteria of an Average Hours Payment Rule defined to match respective leave legislation rules stipulated in AU - Long Service Leave and NZ - Annual Leave Legislations. The Average Hours Payment Rules provide direction to determine applicable employee Average Worked Hours for processing leave payments.

Upon setting up the payment rules, those can be attached to Leave Accrual Methods and/or employees Leave Entitlement records.

During the Payrun process, system uses Average Hours Payment Rule to determine applicable employee Average Worked Hours for processing leave payments.

Prerequisites

  • Corresponding employees should have configured with Average Hours Summary records linked to applicable legislative average hours types

  • The Calculate Average Hours process should have been executed to generate applicable Average Worked Hours for corresponding average hours summary records.

  • Alternatively, Average Worked Hours can be manually setup with the Suppress flag on.

Rules and Guidelines

  • Average Hours Payment Rule is an optional selection in Leave Accrual Method and Leave Entitlement records. However, either Leave Accrual Method or Leave Entitlement record must be configured to enable leave payments using average hours.

Field Information

Enter a code (up to 10 characters) that represents the Average Hours Payment Rules.

Enter a description of the Average Hours Payment Rules.

This field provides two (2) options:

  Description
Greater of Leave payment process picks the greatest Average worked hours value out of selected legislative averages in payment rule.
Lesser of Leave payment process picks the lowest Average worked hours value out of selected legislative averages in the payment rule.

This browselist displays the available Legislative Averages. At least one (1) Legislative Average should be ticked. If you have customised the legislative average descriptions, you will see the customised descriptions in this list.

Code Description
1 Legislative Average 1
2 Legislative Average 2
3 Legislative Average 3
4 Legislative Average 4
5 Legislative Average 5
6 Legislative Average 6
7 Legislative Average 7
8 Legislative Average 8
9 Legislative Average 9

This field indicates whether payment rule enables for employee terminations and leave liability movements. This provides provision for including or excluding average hours payments in terminations and leave liability calculation.

When flagged, the payment rule enables to use applicable average hours in leave liability calculation, leave liability report and unused leave payouts in terminations.