Set up Time in Lieu

You can set up Time In Lieu for when an employee works a certain amount of hours in a week and is paid a lesser amount with the remaining hours being banked for the employee to take at a later date. 
Example:  The employee works 45hrs in a particular week and is only paid 38hrs, the remaining 7hrs are banked. In the 4th week, the employee only works four days and the fifth day is taken as a day off but paid using the banked hours.

In this article we will cover: 

  1. How to set this up and
  2. How to process in Wage Easy Payroll

1. Setting up the Award interpreter file to include the Time In Lieu leave type

Start by creating the new Time In Lieu leave type:

  1. In the appropriate Award (Setup>Awards>Edit) under Leave, choose to Add/Delete Leave.
  2. Click Next

  3. Click Add New Leave Type>Next> In the Leave Type, Description, and Short Description fields enter the new leave type title i.e. TIME IN LIEU
  4. Click Next>Next>Finish
  5. You will be taken back to the Award file. Go to Leave > Time In Lieu
    On the Accruals Tab ensure the calculation method is Per Pay with an accrual rate of 0.0

  6. Go to the Auto Payments tab. Tick the box “Deduct leave Accrued from Pay”. This way the hours will come off the employee’s pay and instead accrue in their file toward Time In Lieu.
  7. Go to the Payments tab, ensure “Payments can be edited at Wages Processing” is ticked.
  8. If payments should be Superable or included in Period Overtime calculations please go to the “Other” tab and tick the bottom two tick boxes as relevant

2. Processing Time In Lieu

If the employee has worked more than rostered and needs to accrue Time In Lieu:

  1. At Wages > Timesheet > Enter the total hours worked onto the timesheet click Next. From Adjustments Screen, select Leave and Double-click/Edit the Time in Lieu line.
  2. When the Edit Leave Payment window has opened, under Payment Calculation = Hours, put negative hours and minutes that are over the rostered hours (This will credit those hours to the employees Time In Lieu entitlement and reduce the amount paid on this payslip). Click OK   >    Next.
  3. View the payslip to confirm the hours are being reduced from payment and banked.

If the Employee is taking Time In Lieu 

  1. Enter the total hours worked onto the timesheet>Next
  2. In Adjustments Screen, select Leave>Add>Time In Lieu
  3. Select the dates that Time In Lieu was taken, in both To and From dates. In Payment Calculation = Hours, put positive hours and minutes. (This will increase the amount of pay, but reduce the employees Time In Lieu entitlement)
  4. View the payslip to confirm the hours are increasing the employee’s payment through Time In Lieu.

On the payslip: If you wish to keep track of the TIME IN LIEU hours being banked on the payslip, from Setup,
Preferences, Payslip, select to show TIME IN LIEU on the payslip.
Leave Reporting
On any leave entitlement reports, a negative amount ($ or hours) indicates an employee has been paid more TIME
IN LIEU than they have accrued, where a positive amount indicates they have TIME IN LIEU available to take.

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