By default, each company may set up the master leave settings in Cloud Payroll, whereby all leave types will follow this initial leave policy to calculate the leave type entitlement, apply leave and calculate Unpaid Leave and Paid leave. Read on to learn more.
By default, Leave entitlement is calculated in prorate manner.
An obvious example - Annual Leave is prorated by default in the system unless you changed the calculation method at Human Resources> Leave Type. Other than that, this screen also let you modify other leave settings in general.
Go to Company> Company Profile> Settings > Leave Settings
Calculation Year of Service : select by join Date or Confirm Date - this will decide when the company wants to start calculate the annual leave entitlement for the employees.
Leave Calculation Method: Based on setting of Calculation Year of Service, this determine how system calculate the employees prorate leave days
You may check on this KB on the calculation formula of each calculation method - How to calculate Leave Entitlement
Apply Leave mechanism:
This setting will decide whether or not the company allow employees to apply leave more than what they have earned up to the leave dates they apply for.
Earned Leave: The employee must continue his service until the end of the year to earn all his leave entitlement of the year.
Entitlement Days: The Leave entitlement that the employee suppose to get in current year until year end. (assuming he's not leaving the company this year)
Use Earned Days
Allow employee to apply leave based on prorated leave days they have earned up to the leave dates they apply for.
For example, if the employee's leave entitlement for this year = 12 days and leave calculation method is by month proportion.
In June, his earned leave is roughly 6 days*, based on this earned leave, he can apply a maximum of 6 days leave only* in June.
He will gain more leave days as he continue his service throughout the year (max 12 days in this case)
* the actual figure may differ based on leave calculation method user selected and other settings
Use Entitlement Days
For this option, there will be no leave date restrictions or whatsoever on how many days the employee can apply for leave and at when. As long as the maximum leave days they apply does not exceed the Leave Entitlement of the year.
Taking the same example as above, employee yearly Leave Entitlement = 12 days, he can apply all 12 days anytime throughout the year.
Leave Balance Check Earned Leave (Prorate days)
In the system, only Annual Leave will have Earned Leave column. You may check the employee's earned leave as at the date in Balance Leave as at column.
For other details on Leave Module in system, you can sign up in our Academy portal and enroll in this course, Chapter 5: