What is Length of Service?
Length of Service is the number of years an employee has been working for an organisation. Some companies like to reward their employees for their length of service by increasing their Leave or Sickness Allowances.
HR Managers and Admin can set up Length of Service per Work Profile, this can be a once off or set up in multiple increments.
Where is Length of Service Configured?
Go to Leave Admin > Work Profiles.
Select the Work Profile or create a new one. You must ensure the Working Rota, Leave and Sickness Allowances, along with any Custom Allowances are correctly set up before enabling Length of Service.
Go to Leave Settings > Length of Service.
Here you can define when the employee is awarded the additional entitlement based on the amount of years they have been employed.
Example: If you have an increase after an employee has been employed for 3 years, and another after 5 years of employment, you only need to add increments for 3 Years & 5 Years. During Year 4, the system will honour the allowance given in Year 3, while any years after the fifth anniversary will continue at the 5 year allowance.
New sub-tabs for each increment are added to the top menu so you can configure each increment independently. This can be either annual or accrued allowance but must be the same allowance type as the Default Entitlement.
Head to each of the additional tabs to add the new default allowance for each increment.
Once this is done, go to the Allowance Calculator to save the changes.
Note: You must make sure Employees have the correct Employment Start Date in the system for the Length of Service Entitlements to be correctly calculated.
How should Length of Service be allocated?
Under Length of Service increments, you must select how Length of Service should be allocated. The system can either give the allowance in full, or pro rata the allowance.
There are 5 options for this:
In all our examples, Leave Years run from 1st January-31st December.
Allocate Full Allowance
- Allocate the full year entitlement on the year following the employee's anniversary
- For example, Alice has been employed since June. She will be awarded her Length of Service entitlement the January after her anniversary
- Allocate full year entitlement at the start of the year of the employee's anniversary
- For example, Tony has been employed since August. He will be awarded his Length of Service entitlement the January of his anniversary year
Allocate Pro-Rated Allowance
- Allocate a pro-rated entitlement based on the number of months between the employee's anniversary and the end of year
- For example, Rachel has been employed since 3rd April. There are 8 full months between her start date and the end of the Leave Year. so her additional Leave will be pro-rated based on 8 months
- Allocate a pro-rated entitlement based on the number of month between the employee's anniversary and end of year (including their start month)
- In the example above, Rachel will be awarded additional Leave pro-rated based on 9 months
- Allocate a pro-rated entitlement based on the number of days between the employee's anniversary and end of year
- In the example above, there are 272 days between 3rd April-31st December, so Rachel will be awarded additional Leave pro-rated based on 272 days
What is Length of Service based upon?
Length of Service is based upon an Employee’s Leave Start Date and is configured per Work Profile.
Length of Service can be configured to be calculated based on an employee’s Job Start Date, their Continuous Start Date, or a Custom Start Date. The default is the employee’s Job Start Date. This can be configured at an Employee level, within their Employee profile.
Go to Organization > Employees > Select an employee, then switch to the Employee Profile tab.
Use the Leave Start Date dropdown to select which date the system will calculate Length of Service from. The default is set to Job Start Date.
Job Start Date - The Job Start Date defines the start date of the employee’s current employment.
Continuous Start Date - Continuous Start Date defines the Start Date from which Continuous Employment is measured.
Custom Start Date - Choose a date for the Leave Allowance to calculate from.