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Managing Tanda’s Long Service Leave Feature
Managing Tanda’s Long Service Leave Feature

A guide to configuring Tanda's new long service leave feature.

Updated over a month ago

This help guide will detail how to access, configure, and manage Tanda's new long service leave feature and answer common FAQs.

Important: This feature is currently only available for employees working in Queensland. We hope to roll it out for other locations in the future, so stay tuned!

Defining Key Terms

Before we explain how to configure the long service leave feature, we must first define some key terms.

Long Service Leave

A leave type available to employees who have completed a set period of continuous service with your company (in Queensland, 10 years). Whereas all full-time employees are entitled to annual and sick leave, only employees who have completed a set period of continuous service are entitled to long service leave.

Contingent Period

The contingent period is the time after which an employer may be required to pay out long service leave under certain circumstances, such as a termination payment. In Queensland, employees may be entitled to a proportionate payment of long service leave upon termination after 7 years of continuous service. Please consult your local legislation for the specific circumstances under which a contiguous long service leave payment is required.

Entitlement Period

The period after which an employee is eligible to take their long service leave. In Queensland, this is after 10 years. After this period, employees are also automatically entitled to a long service leave payment upon termination.

Continuous Service

A period of unbroken, continuous service with the same employer. Paid leave counts as continuous service, though other absences from work may not necessarily count towards long service leave accrual. For example, long service leave does not accrue during unpaid parental leave, but such leave does not break the continuity of service.

Accrual Rate

In Queensland, full-time employees are entitled to 8.667 weeks of long service leave after 10 years of continuous service. After another 5 years of continuous service, they are entitled to a further 4.333 weeks for 13 total weeks of long service leave. After more than 15 years, long service leave continues to accrue and can be accessed immediately.

For part-time and casual employees, the formula to work out long service leave is:

  • Total ordinary hours worked ÷ 52 x 8.6667 ÷ 10 = Number of hours long service leave.

The above accrual rates are accurate for Queensland. For accrual rates and formulae in your location, please refer to the relevant legislation.

Accessing & Configuring Long Service Leave

For easy access, we have added a Long Service Leave tab to each employee’s profile. To access it, navigate to an employee’s profile, then select Payroll > Long Service Leave.

If you haven't yet set a staff member’s employment start date, you will be prompted to do so. Without this, the feature will not work, as the employment start date is used to calculate the employee’s period of continuous service.

To enter an employment start date, navigate to Personal > Personal Details on an employee’s profile, then scroll down to ‘Employment start date,’ enter the appropriate date, and click ‘Update Employee Details.’

Once you have set an employment start date, return to the Long Service Leave tab to configure the feature. You will first be prompted to enter a state. Please note that this service is currently only available in QLD.

On this page, you will also be shown the employee’s next eligible accrual date and the option to enter additional hours worked outside Tanda and additional days of non-continuous service outside Tanda. We've included this option because an employee’s entire tenure with your organisation might not necessarily be housed and recorded in Tanda. As such, you can supplement hours recorded in Tanda with those worked outside Tanda on this page for an accurate long service leave calculation.

For example, let’s say your company signed up to Tanda last year, but you have an employee who has worked 11,245 hours of continuous service (just over 5 years) before that. In that case, you would enter '11,245' in the ‘additional hours worked outside Tanda’ field. Ensure you hit save to apply your changes.

What Happens Before a Long Service Leave Payment?

When an employee is about to be paid a payslip entitled to long service leave for the first time (i.e. the previous payslip was not entitled to long service leave), you will receive an alert that the employee is about to accrue long service leave.

This alert links to the employee's Long Service Leave tab, prompting the employer to ensure all details are accurate before finalising that pay run.

You can also track an employee's long service leave entitlements directly in the Long Service Leave tab. The 'Next Entitlement' section shows the employee's next eligible long service leave accrual date.

Viewing Long Service Leave on Payslips

Once an employee becomes eligible after an appropriate period of continuous service, long service leave will create an accrual on their payslip, as shown below.

By default, the contingent leave balance is hidden and unusable (i.e. an employee cannot use this balance to apply for leave)—it is only used for termination payments under certain circumstances.

After 10 years of continuous service (refer to local legislation for the appropriate period in your region), a usable long service leave balance will appear on the employee's account. From here, employees can treat this like any other leave type to request leave. For details on doing so, please see our leave and unavailability help guide.

Note: Employees might accrue slightly more contingent leave than what's available after 10 years of continuous service due to marginal rounding issues. This issue is due to how we calculate weekly leave accrual. For example, a full-time employee working 38 hours per week is entitled to 329.3333 hours (8 2/3 weeks) of long service leave after 10 years of continuous service. However, the sum of each weekly contingent accrual can add up to 329.85 +/- 0.0122 hours, depending on the number of weekdays and leap years within the 10-year accrual period. Once an employee hits 10 years of continuous, the correct balance will apply.

How Do We Calculate Long Service Leave?

Long service leave is calculated based on the time an employee has worked over their employment. For full-time employees, we calculate this based on their pay conditions, which can be found by navigating to an employee's profile and selecting Pay Conditions.

We use timesheets for part-time and casual employees, following the calculation formula below:

  • Total ordinary hours worked ÷ 52 x 8.6667 ÷ 10 = Number of hours long service leave.

If an employee has worked a mix of full-time and part-time hours over their tenure, we look for timesheets that reflect these hours.

To learn more about long service leave accrual and calculation rules, please see the Queensland Government's Long Service Leave information page. Alternatively, access the appropriate legislation for your location.

FAQs

I can't find or access this feature. Why not?

Currently, our long service leave feature is only available for employees working in Queensland. If you’re not in Queensland, you cannot access the feature. We hope to launch this feature in other locations soon, so stay tuned!

Alternatively, if you are located in Queensland and still cannot access the feature, you may not have the correct user permissions. Please confirm this with your account admin.

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