Example: Pro rata accrual during an unpaid absence

The Accrue During Unpaid Absence field in the Absence Accrual Rule determines how absence entitlement accrues during an unpaid absence:

Picklist. How entitlement to absence of this reason is to accrue during an accrual period that contains unpaid absence.

Select the picklist and select from:

  • Full

    Accrue at the full rate throughout the period.

  • None in Period

    Do not accrue while the Team Member is on unpaid absence. If selected and the accrual includes even one day of unpaid absence, nothing accrues during the entire accrual period.

  • Partial

    Accrue at the full rate if part of the accrual period is unpaid absence; do not accrue if the complete period is unpaid absence.

  • Pro Rata

    Accrue at the full rate for the part of the accrual period that is not unpaid absence; do not accrue for the part of the accrual period that is unpaid absence. Time defined as Public Holiday is excluded from the accrual.

  • Pro Rata Including Public Holidays

    Accrue at the full rate for the part of the accrual period that is not unpaid absence, but include Public Holiday; do not accrue for the part of the accrual period that is unpaid absence.

When an unpaid absence falls in more than one accrual period, the selected option applies to each period in which the absence falls.

The following table shows an example of a Team Member's working days and absence days in a month.

Day of month Working day Absence Absence reason
1 Yes Yes Unpaid leave
2 Yes Yes Public Holiday
3 No No Not applicable
4 No No Not applicable
5 Yes Yes Public Holiday
6 Yes No Not applicable
7 Yes No Not applicable
8 Yes No Not applicable
9 Yes Yes Unpaid leave
10 No No Not applicable
11 No No Not applicable
12 Yes No

Not applicable
13 Yes No Not applicable
14 Yes No Not applicable
15 Yes Yes Unpaid leave
16 Yes Yes Unpaid leave
17 No No Not applicable
18 No No Not applicable
19 Yes No Not applicable
20 Yes No Not applicable
21 Yes No Not applicable
22 Yes Yes Unpaid leave
23 Yes Yes Unpaid leave
24 No No Not applicable
25 No No Not applicable
26 Yes No Not applicable
27 Yes No Not applicable
28 Yes No Not applicable
29 Yes No Not applicable
30 Yes Yes Unpaid leave

 

Assuming: 

  • Entitlement accrues per month

  • The Team Member accrues either 2.0833 days or 13.3333 hours per month

... then this is how the partial and pro rata options for Accrue During Unpaid Absence affect accrual during the example month:

  • Partial

    The Team Member accrues at the standard rate through the month, including the unpaid absences: 2.0833 days or 13.3333 hours. If the unpaid absence spans the entire accrual period (month), the accrual is 0.

  • Pro rata

    The Team Member accrues at the standard rate through the month, excluding Public Holidays or unpaid absences to give a pro rata accrual: 

    • The example month has 22 working days. Absence does not accrue on Public Holidays, so the entitlement accrues over 20 days.

    • The monthly accrual rate (2.0833 days or 13.3333 hours) is divided by the number of working days (20) to get the accrual amount per day: 0.104165 days or 0.666665 hours accrued per day

    • The accrual from the seven unpaid absence days (7 times 0.104165 or 7 times 0.666665) is then deducted from the full accrual amount to arrive at the pro rata accrual for the period: 1.354145 days or 8.666645 hours

  • Pro rata including Public Holidays

    The Team Member accrues at the standard rate for all working days in the accrual period, excluding unpaid absences: 

    • The example month has 22 working days, including two Public Holidays.

    • The monthly accrual rate (2.0833 days or 13.3333 hours) is divided by the number of working days (22) to get the accrual amount per day: 0.094695 days per day or 0.606059 hours per day

    • The accrual from the seven unpaid absence days (7 times 0.094695 or 7 times 0.606059) is then deducted from the full accrual amount to arrive at the pro rata accrual for the period: 1.420432 days or 9.090886 hours

The pro rata calculations do not consider if the unpaid absence spans the entire day or not. A partial day unpaid absence is treated the same way as a full day unpaid absence. If you want to award a pro rata accrual for the hours worked on partial unpaid absence days, you can add an Absence Adjustment for the Team Member.