This guide will cover everything you need to know to setup a Leave Policy:

Leave Basic Settings

1. How to Count Days

With this setting, you can select how to calculate a particular leave, whether you want to be calculated as Working Days or Calendar Days.

Here is the difference:

  • Working Days: Only business days are counted as days of leave, weekends and company holidays (those on the calendar) do not count as used leave.

  • Calendar Days: Every day from departure until arrival is counted against your leave balance, even if some days fall on a weekend or public holiday.

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2. Unpaid Leave

With this setting enabled, any unpaid leave taken by employees can be synced seamlessly into the payroll.

Depending on the country, Unpaid Leave/No-Pay Leave is calculated with either of the following formulas:

(Gross Salary/Total number of WORKING DAYS in that month) * No. of Unpaid Leave days taken
(Gross Salary/Total number of CALENDAR DAYS in that month) * No. of Unpaid Leave days taken

Note: kindly reach out to our support team if you require further clarification.


Leave Entitlement Settings

1. Leave entitlement increases after a set period (Accrual Leave)

With this setting enabled, you'll be able automatically assign different max entitlements based on an employee's number of years of service.

Example:
Assuming the an employee is entitled to 7 days annual leave in year zero (upon confirmation), 14 days in the second year (>24 months), 20 days in the fifth year (>60 months) and so forth.

The setup in HReasily will be as follows:

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2. Use Common Leave Year Period

With this setting enabled, leaves will now be refreshed based on the date defined under this setting.

Without this setting enabled, leaves will not be refreshed.

Best practice:

  1. Have the common leave year period set as 1st January of the following year. Having all employees' leave refreshed together makes it easier to consolidate and manage as compared to tracking based on an employee's join date.

  2. Common leave year period does not need to follow a company's financial year. Following the calendar year makes it easier for employees to plan their holidays.

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3. Leave Entitlement Mode

This setting will allows you to set how you'd like to assign the leave entitlement for employees from the available options:

  • Employee Receives Full Entitlement Upfront

With this setting enabled, once the leave is assigned to employees, then employee should receive the full leave days assigned to them.

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  • Employee Receives a Prorated Amount according to the Company’s Leave Year Period

With this setting enabled, Leave entitlement will be assigned by using the pro-rated amount based on employee’s join date.

Note:

  1. If you select this option, Common Leave Year Period will be mandatory.

  2. If the Leave entitlement increases after a set period setting is also enabled, only after upon completion of 1 year, employees will receive their next year increment.

  3. Upon enabling prorated leave, you may choose to set the Rounding Options.

Example:

Assuming the following settings are used:

Accrual days:
Year 0: 12 days
Year 1: 14 days

Leave Year Period: 1 January

Employee's Join Date: 1 June 2021

Between the employee join date until 1 day before the Leave Year Period 2021, the system calculates the prorated leave, similar to when prorated leave setting is used as a standalone:

Scenario

Join Date

No. of completed months in Y0

Prorated Leave in Y0

first day mid month

1/6/21

7

7

Between the leave year period 2021 until 1 day before the next leave year period 2022, the system sums up the remaining leave in Y0, and the prorated leave in Y1.

We take into account the setting used for Accrual leave (Y0: 12 days, Y1: 14 days) as seen below:

Scenario

Employee 1 year anniversary

No. of remaining months in Y0

Remaining Prorated leave in Y0

Prorated leave in Y1

Remaining leave in Y0 + prorated leave in Y1

First day mid month

1/6/22

5

5

8.166666667

13.17

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  • Employee Earns a Portion of The Leave Entitlement after Each Month of Employment (Earned Leave)

With this setting enabled, Leave entitlement will be pro-rated according to the following formula:

(No. of completed months of service / 12 months) x Leave entitlements


Note: If an employee joins mid way through the year, leaves will be prorated based on the join date. If a common leave year period is set, leave will be prorated based on this setting in the following year.

Note:

Upon enabling earned leave, you may choose to set the Rounding Options:

  1. No Rounding (Default)

  2. Round Nearest 1.00

Example:

Employee A is entitled to 7 days of annual leave a year with Earned Leave settings enabled.

So, Employee A will earn: 7/12 = 0.58 days/month

If you choose round to nearest 1.00, then:


Month 1: 0.58 days, round off become 1 .00 days
Month 2: 1.17 days, round off become 1.00 days
Month 3: 1.75 days, round off become 2.00 days
Month 4: 2.33 days, round off become 2.00 days

Leave Rollover Settings

1. Allow rollover days to next year

Also commonly referred to as brought forward or carried forward leave, as the title suggest, this setting allows for leftover leaves to be rolled over to the next year.

Example:
Company A allow employees to rollover up to 5 days annual leave but must be utilised before then end of the first quarter (31st March). The setup will be as follows:

Set rollover expiry date [Optional]

This setting allows you to determine a 'use by' date for the rolled over leaves. Without this setting enabled, rolled over leave can be accumulated throughout the year.

Best practice:

  1. Allow rollover leave if leaves are prorated. This is to ensure employees have sufficient leave balances for the initial months for important festivities like Chinese New Year.

  2. Set a rollover expiry within the first quarter to reduce the likelihood of employees accumulating excessive number of leaves and taking a long break which may affect day-to-day operations.

Leave Application Settings

1. This Leave can be Applied for

This setting allows you to determine 'when' the staff can apply for leave.

  • Immediately [Default]: Upon assigning leave types to employees, they will be able to apply for leave as soon as possible.

  • Upon Confirmation: Requires an employee to have a 'Confirmed' employment status to be able to apply for leave.

  • After a fixed period: Requires an employee to work for certain period (days or months) before they're able to apply for leave.

  • After a fixed period or upon confirmation, whichever is earlier: Requires an employee to have a 'Confirmed' employment status or work for certain period (days or months) before they're able to apply for leave, whichever is earlier.

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2. Minimum Leave Taken

Requires an employee to take a minimum of X no. of days when applying for a related leave type.

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3. Minimum Days Notice

Requires an employee to apply for leave X no. of days prior to actual leave date otherwise an error will be prompted as seen below:

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