Here is in-depth explanation of the terms used in setting up your company leave policy.

Jump to:

  1. Accrual Leave

  2. Prorated Leave

  3. Allow rollover days to next year

  4. Set Leave Year Period

  5. Unpaid Leave

  6. Minimum Leave Taken

  7. Minimum Days Notice

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1. 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. Prorated 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.

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3. 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.

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4. Set 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 be refreshed based on an employee's join date.

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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5. 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 * 12 months)/Total number of WORKING DAYS in a year] x 

No. of Unpaid Leave days taken

Note: Kindly reach out to our support team if you require further info.

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6. 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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7. 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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