Dayforce uses Long Service Leave (LSL) policies to determine an employee’s eligibility for LSL based on their region, employment status, and leave type. You can customize your LSL policies based on the needs of your organization. For example, you can create an LSL policy for specific employees if their eligibility requirements differ from other employees. Depending on your needs, you can apply each LSL policy to multiple regions or countries, or you can create a single policy for each region.
You configure LSL policies in Pay Setup > Long Service Leave in the Policies tab. For each LSL policy you add in Dayforce, you must define at least one version of each record described below:
| Record Type | Description |
|---|---|
| General settings and calculation mode |
In the General tab of the policy slide-out panel, you can configure the policy’s general settings, such as its name, description, and reference code. In this tab, you can also configure how Dayforce calculates LSL. In the Mode drop-down list, you can select one of two different modes that control the level of validation that Dayforce enforces when processing LSL. Depending on which calculation mode you select, some settings and options for configuring LSL become unavailable. For more information about these calculation modes, see Calculation Modes. |
| Regional |
A regional record controls how LSL is accumulated and calculated in a specific region. For each regional record, you can define additional configuration records depending on your business and regional requirements. You configure these records in the State/Territory Details tab of the policy slide-out panel. |
| Configuration |
A configuration record is added to each regional record. The configuration record dictates the effective period, continuous employment period length, and the length of continuous employment required for payment for each regional record. You can add multiple configuration records to each regional record. You configure these records in the Configuration section of the State/Territory Details tab. |
| Employment category |
An employment category record applies leave type and employment status thresholds to your pay classes. These thresholds control how TAFW pay codes and employment status changes affect continuous employment. Leave type and employment status thresholds are configured in the Leave Categories and Employment Statuses subtabs, as described below. You can add multiple employment category records under each configuration record. You define these records in the Employment Categories subsection of the Configuration section for each configuration record. |
| Leave category |
A leave category record controls how specific TAFW pay codes or employment status reasons (that is, leave reasons) affect your employees’ continuous employment. For example, you can select a TAFW pay code that represents a leave type and define whether that leave type extends or breaks the continuous employment threshold. You can add multiple leave category records under each employment category record. You configure these records in the Leave Categories subtab of the Employment Categories subsection for each employment category record. Important: Only employment status reasons that are configured as leave reasons are available in the Leave Categories subtab. That is, in HR Admin > Employment Status Reason, the employment status reason is configured with the Leave Reason checkbox selected. |
| Employment status |
An employment status record controls how continuous employment is affected, or unaffected, by an employee’s change in status (for example, changing to Pre-start or Rehire). You can add multiple employment status records and the reason for each status change under each employment category record. You can also customize when the continuous employment period ends after the status change. You configure these records in the Employment Statuses subtab of the Employment Categories subsection for each employment category record. Important: Only employment status reasons that aren’t configured as leave reasons are available in the Employment Statuses subtab. That is, in HR Admin > Employment Status Reason, the employment status reason is configured with the Leave Reason checkbox cleared. Additional Considerations By default, when an employee’s status changes to Terminated or Inactive, Dayforce immediately ends their continuous service. For example, if you don’t configure a record in the Employment Statuses subtab, an employee’s continuous service will end upon their termination, regardless of the reason. To avoid this default behavior, in the Employment Statuses subtab, you need to configure specific thresholds for any employment status and reason combinations that you want to exclude. Additionally, you must set the duration in which continuous service shouldn’t reset using the End Continuous Service After setting. You can also configure employment status records so that the Active status affects LSL eligibility. This functionality supports New Zealand Holidays Act requirements where LSL should extend annual leave entitlement dates, but also exclude casual workers who are cashing out their annual leave. When you configure an employment status record with the Active status, the record works inversely compared to a record that’s configured with the Terminated or Inactive statuses. That is, continuous service will reset only for the included Active status and reason combinations. Important: These settings require a match with the equivalent status and reason combinations in People in the Employment > Employment Settings screen, in the Employment Status tab in the Employment Status and Reason fields. For example, an employment status record that’s configured with the Terminated status and with no reason matches only that exact combination in People. A different reason doesn’t match, so an employee’s continuous service isn’t affected until their status in their employee profile matches your LSL configuration. To configure an employment status record so that all reasons apply, in the Reason drop-down list, select Any Reason not already listed. |
The following topics describe the settings available in the Policies tab that you can use to customize your LSL policy, and how to add an LSL policy: