How the Leave Entitlement Being Calculate When Employee Join Date Is Future Date?

How the Leave Entitlement Being Calculate When Employee Join Date Is Future Date?

August 24, 2015 Blog 0

Introduction

In some way, HR would create employee record before the new employee starts. This could be onboarding process by making sure things that are required for new employee is ready.

In this article, we will create 2 new employees record before them start. The examples will demonstrate how the leave entitlement being calculate when employee join date is future date.

Prerequisites

Both examples, you will need:

  • Logon as Administrator.
  • New employees’ company email are created.

Configurations

Leave cut off is on 1st Jan.

Annual Leave Policy:

  • Accrual / Earn: Accrue Monthly (At start of the month) – utilisation based on closing balance
  • Entitlement: 12

Sick Leave Policy:

  • Accrual / Earn: Accrue Annually (At start of the cut off month)
  • Entitlement: 12

Unpaid Leave Policy:

  • Accrual / Earn: Do not accrue. Just track usage
  • Entitlement: 12

For more information on how to create Leave Policy, you may visit How To Add a Leave Policy.

Example 1: New joiner John

HR is creating John’s record on 5 February 2015 and John actual start date is on 16 February 2015. Based on the configuration above, John entitles Annual Leave, Sick Leave and Unpaid Leave.

The Annual Leave accrue is configured as monthly basis. As a result, John’s earned 1 day on February. His earning will accumulate every 1st day of the month based on eligible leave entitlement table. His total year end earning is 11 days.

The Sick Leave accrue is configured as yearly basis. Leave entitlement is no prorate on yearly basis accrue. As a result, John’s enjoy full entitlement which is 12 days.

There is no accrue for Unpaid Leave. For no accrue leave policy, system just copy the entitlement to leave profile without consider employee join date. As a result, John’s enjoy full entitlement which is 12 days.

Here are the leave profiles created by the system.

Annual Leave Profile:

Earned: 1

Closing Balance: 11

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
0 1 1 1 1 1 1 1 1 1 1 1

Sick Leave Profile:

Earned: 12

Closing Balance: 12

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
12 0 0 0 0 0 0 0 0 0 0 0

Unpaid Profile:

Earned: 12

Closing Balance: 12

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
0 0 0 0 0 0 0 0 0 0 0 0

Example 2: New joiner Mary

HR is creating Mary’s record on 5 Dec 2015 and Mary actual starts date is on 1 January 2016. Based on the configuration, Mary is entitled Annual Leave, Sick Leave and Unpaid Leave.

Marry is no entitled any Annual Leave on 2015 calendar year because her start date is on 2016. System will update her Annual Leave profile when accrue run on 1 Jan 2016.

Marry is no entitled any Sick Leave on 2015 calendar year because her start date is on 2016. System will update her Sick Leave profile when accrue run on 1 Jan 2016.

There is no accrue for Unpaid Leave. For no accrue leave policy, system just copy the entitlement to leave profile without consider employee join date. As a result, Mary’s enjoy full entitlement which is 12 days.

Here are the leave profiles created by the system.

Annual Leave Profile:

Earned: 0

Closing Balance: 0

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
0 0 0 0 0 0 0 0 0 0 0 0

Sick Leave Profile:

Earned: 0

Closing Balance: 0

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
0 0 0 0 0 0 0 0 0 0 0 0

Unpaid Profile:

Earned: 12

Closing Balance: 12

Eligible Leave Entitlement:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Noc Dev
0 0 0 0 0 0 0 0 0 0 0 0

Conclusion

You should have everything you need for your onboarding process. Keeping in mind that employee join date can be amended and system will re-calculate employee leave earned based on the new joined date. Same happen to changing cut of month.

See Also

How to Add a Staff
Understand the Leave Policy Form

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