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Creating and configuring leave codes

Setting up leave types and customising leave settings.

Updated over 3 months ago

Leave codes define:

  • What leave types exist

  • How they accrue

  • How they are consumed

  • How they appear in pay runs and reports

SmoothPay provides preconfigured leave codes based on jurisdictional minimums, but you can customise these or create new leave types.


Default Leave Codes

Each jurisdiction includes:

  • Annual leave / holidays

  • Sick leave

  • Bereavement leave

  • Public holidays

  • Local or legislative leave types

  • Any additional region-specific entitlements

These defaults are already configured to meet legal requirements.

You can edit them if your organisation provides additional benefits.


How Leave Settings Work

All leave configuration is managed in the Codes screen under the Leave codes category.

To configure or create leave types:

  • Default leave types can be edited

  • New leave types can be added

  • Existing employees inherit settings only when the owner applies them using the spanner button

Spanner button (Owner only)

Located beside the Use or accrue field.

This button applies the leave code’s rules to:

  • All existing employees

If not used, only new employees inherit the updated rule set.


Leave Code Settings

When you create or edit a leave code, you configure the following fields:

Abbreviation

  • Internal identifier used in imports and reporting

  • Keep this short and unique

Description

  • The display name of the leave type

  • Appears on payslips and reports

Classification

  • Determines the hard-coded rule set

  • Controls valuation rules, termination behaviour, caps, and jurisdiction logic

  • Options vary by country

Use or accrue

Defines the unit of measurement:

  • Hours

  • Days

  • Weeks

  • Percentage per pay

This also determines how leave consumption is recorded in pay runs.

Accrual starts after

  • The number of months before accrual begins

  • Used for jurisdictions where leave accrual is delayed after commencement

Then receives full entitlement

Controls whether the leave:

  • Accrues only annually on the anniversary (ticked), or

  • Accrues progressively using the to-date method (unticked)

Accrual rate

  • The amount of leave granted per year

  • Or a percentage if using percentage per pay

Capped at

  • Sets a maximum leave balance

  • Applies either to the anniversary or to-date balance depending on the classification

Cost centre

  • Sets the default cost centre for this leave type

Auto-balance

  • Disables accrual

  • Allows the leave to be recorded without affecting balances

  • Common for unpaid leave or administrative leave

Show balance on payslip

  • Displays the leave balance to employees

Leave without pay

  • Records leave at $0 without affecting balances

Counts towards RDO/Flexi-time

  • Includes this leave type in automatic TOIL/RDO calculations


Percentage per Pay Settings

This section appears only when:

  • Editing an existing percentage-per-pay leave code

  • Creating a new percentage-per-pay leave code

You can select which paycodes contribute to the accrual calculation:

  • All

  • Taxable

  • Superable

  • Toggle (invert current selection)

You can also manually tick or untick individual paycodes to fine-tune inclusions.


Changing Default Leave Settings

When you edit a leave code:

  • New employees will automatically inherit the updated settings

  • Existing employees will not be updated unless:

You use the spanner button (Owner only)


To change leave code settings:

  1. Go to the Codes screen

  2. Select the Leave codes category

  3. Select the leave type to amend

  4. Click the edit button

  5. Adjust the required settings

  6. Click Save


Creating New Leave Codes

You can create additional leave types whenever needed.

All new employees will inherit any leave codes that exist at the time of creation.

To create a new leave code:

  1. Go to the Codes screen

  2. Select the Leave codes category

  3. Click the + button

  4. Apply the leave code settings

  5. Click Save


Important Notes

  • Some leave types are hard-coded due to strict legislative rules

  • These settings cannot be modified beyond what is permitted

  • If you need a variation not supported by the interface, contact Support for guidance

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