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Length of Service (LOS) additions explained

Length or Service addition calculations explained.

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Written by Harry Ledger
Updated over 2 months ago

Once you set up your holiday rules to award length of service (LOS) and assign them to employees, the LOS allowance generates based on the continuous service date (CSD) within the employee's record.

LOS additions explained

Each row in the table indicates how much an employee receives based on their LOS rule. Below is an example of how you might set this up.

๐Ÿ“Œ Note: LOS additions do not stack.

Years service

LOS addition

What this means

Five

Four

If the employee has over five years of continuous length of service, they get four additional days of holiday entitlement.

Four

Three

If the employee has over four years but less than five years of continuous length of service, they get three additional days of holiday entitlement.

Three

Two

If the employee has over three years but less than four days of continuous length of service, they get two additional days of holiday entitlement.

Zero

Zero

If the employee has less than three years of continuous length of service, they don't get any additional days of holiday entitlement.

๐Ÿค“ Tip: If the employee's holiday history record is set to hours but the holiday rule is set to days, the LOS addition value multiplies by the notional hours against the working pattern type for the employee's career history record.


Pro-rate the LOS additions

To understand the length of service additions rule, here are some examples for each rule, based on a CSD of 30 January 2006 and 15 years LOS.

LOS rule

Reward date

Adjust for Length of Service at the start of the following holiday year

The employee's qualification date for LOS addition is 30 January 2021.
โ€‹
Their addition generates on 1 January 2022 of the following holiday year start date, on a January - December holiday year cycle.

Adjust for Length of Service at the start of the holiday year

The employee's qualification date for LOS addition is 30 January 2021.
โ€‹
Their addition generates on 1 January 2021, on a January - December holiday year cycle.

Adjust for Length of Service on the 1st of the month after their service date

The employee's qualification date for LOS addition is 30 January 2021.
โ€‹
Their addition generates on 1 February 2021 on a January - December holiday year cycle.

Adjust for Length of Service on the 1st of the month before their service date

The employee's qualification date for LOS addition is 30 January 2021.
โ€‹
Their addition is generated on 1 January 2021.

Adjust for Length of Service on the service date

The employee qualifies and is awarded on 30 January 2021.


Pro-rating FAQ's

Are LOS additions pro-rated based on FTE?

Yes, LOS (Length of Service) additions are pro-rated based on the FTE (Full-Time Equivalent) defined in the employeeโ€™s working pattern. How this is applied depends on the holiday entitlement setup in the holiday rule:

  • If entitlement is in hours, pro-rating is based on the Career FTE.

  • If entitlement is in days, it uses the Holiday FTE.

How is the pro-rating of LOS additions calculated?

There are two different methods of pro-rating, depending on how the holiday rule is configured.

1. If LOS adjustments are not set to be pro-rated:

  • Hours: Career FTE on award date ร— (Addition amount ร— Notional hours per day)

  • Days: Holiday FTE on award date ร— Addition amount

2. If LOS adjustments are set to be pro-rated:

The calculation is affected by the specific LOS option used in the holiday rule. This only applies when using one of the following LOS options:

  • Adjust on the first of the month after the service date.

  • Adjust on the first of the month before the service date.

  • Adjust on the service date.

The formula used:

  • Hours: Pro-rated period ร— Career FTE on award date ร— (Addition amount ร— Notional hours per day)

  • Days: Pro-rated period ร— Holiday FTE on award date ร— Addition amount

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