Leave Accruals Configuration
Only Administrator role can perform this action.
What is Leave Accruals
Leave accruals are how employees earn time off over time instead of getting it all at once. This approach promotes fairness and follows the company's leave policy and employment laws. Accrued leave can be annual leave, sick leave, or other types of time off that build up based on how many hours an employee works, how long they have been with the company or their contract terms.
Accruals help businesses manage employee leave more effectively, ensuring employees only take the leave they have earned. The rate at which leave accrues can vary based on job type (full-time, part-time, or contract), length of service, and company rules.
Employees can use their leave once they have accrued enough time. Some companies allow taking leave in advance, while others require waiting until it's fully earned. Some companies allow unused leave to be carried over to the next year, while others may have an expiry policy.
Example of Leave Accrual Calculation
Scenario:
A company grants its employees 24 days of annual leave per year, accrued monthly.
Step-by-Step Calculation:
The annual entitlement of 24 days is divided across 12 months.
Leave accrual per month = 24 days ÷ 12 months = 2 days per month
If an employee has worked for 6 months, they will have accrued:
6 months × 2 days per month = 12 days
Thus, an employee who has worked for half a year will have 12 leave days available, while an employee who has completed a full year will have the full 24 days.
Pro-Rata Accrual Example:
If an employee joins mid-year, their leave will be calculated based on the remaining months.
For instance, an employee who joins in July (Month 7) will accrue leave from July to December (6 months):
6 months × 2 days per month = 12 days of annual leave.
This approach ensures that employees earn leave in proportion to their time worked, preventing excessive leave usage before completion of the eligible period.
Setup Leave Accruals
Leave Accruals setup is can only done by the Administrator role. To configure these settings, start by going to the settings in the left-side menu and selecting the "Configurations" option.
Configurations Option
Then click on the "Leave Accruals" option in the side menu.
Leave Accruals Option
This page let you manage Leave Accruals.
Leave Accruals Page
Before you add Leave Accruals, make sure to check these two points. These are also shown on the Accrual Leave Page.
- Please ensure that these accruals are applicable for the current financial year only.
- Some employees do not have a joining date. Please add a joining date for accruals to work correctly.
If you set the annual leave allowance upfront, you may not need to configure leave accruals for the same leave type, as this could result in additional leave being added.
- First, select a leave type from the dropdown that you want to assign as Leave Accruals.
- Next, add the annual limit for that leave type. You can use up and down arrow heads here or just type your number.
- If your company allows you to use those accruals in the same year, keep the tick. If not, click to remove the tick.
- After finishing, click the green round icon to save your changes.
Select a Leave Type
Setup Accrual Annual Limit
You can see a success notification like below.
Example
All employees in the company now receive 12 leave days each year, which is 1 day per month. If an employee does not use their leave in a given month, it carries over to the next month. For example, if an employee has 2 leave days left over from January and February, they can use them in March.
In March, Alex has 2 annual leave days because he did not take any in January and February.
Edit / Remove Leave Accruals
To edit or delete a Leave type, first select it from the dropdown menu. This will show the information you previously added.
To edit, change the Annual Limit and "Can Use in Same Year" options, then click the green button.
Update existing Leave Accruals
To remove it, simply uncheck the Accrual Status box and click the green button.
Remove Existing Leave Accrual
Recalculate Accrual Allowances
To recalculate your accrual allowances, click the "Recalculate Accrual Allowance" button located below the Leave Accruals table. You can also find the last updated date for the accrual allowances next to that button.
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