You can set up accrual and conversion rules for Leave Credit. Go to Company Setup > Time > Leaves > Leave Entitlement.
Note: At any time, you can still manually add or remove Leave Credit.
Click Add Leave Entitlement. The form will pop up.
Leave Entitlements are assigned to the Ranks you have previously created. Form more information on creating Ranks, click here.
Note: If you have users of the same rank (i.e. both managers) but would like to assign different Leave Entitlements to them, create multiple ranks of the same type, but numbered differently (i.e. Manager 1, Manager 2, etc.).
Select the Rank and the Leave Type that will be used for this Leave Entitlement. Next, in the Accrual Setup section, select how many hours are earned every period, how often they accrue and set the amount of time before the Leave hours start accruing.
Note: In the Leave Hours Accrued section, please note that the system will accept decimal amounts, for example 6.67 hours accrued per month, and the system will accrue these correctly.
In the example above, the Manager can earn 8 hours of Vacation Leave every month, to accrue after 6 months of employment.
You can determine the frequency of leave accrual in the Accrue Every box:
- Once Off - leave accrual will only happens once.
- Year - leave accrual will happen every year.
- Month - leave accrual will happen every month.
- Week - leave accrual will happen every week.
Note: You can set Quarterly leave accrual by entering Accrual Every 3 months.
Note: Monthly leave accruals happen on the day of the month that the employee was hired. For example, if the employee was hired on January 2, accruals will happen every 2nd of the month.
You can set the amount of time before the Leave hours start accruing in the Start Accruing After box, with the following options:
- Year - leave hours will start accruing after 'x' number of years.
- Month - leave hours will start accruing after 'x' number of months.
Conversion Setup lets you determine what happens to Leave hours after a certain period of time, which you can also set. You can also set what happens to Leave hours after an employee resigns or is terminated.
When you click the Leave Conversion Run box, you can select from the following options:
- Semi-Annual - accrued leave hours will be converted every 6 months. Conversion will occur on June 30, and will reflect on the pay run that contains that day.
- Annual - accrued leave hours will be converted every 12 months. Conversion will occur on December 31 and will reflect on the pay run that contains that day.
- Anniversary - accrued leave hours will be converted one year after the employee's hire date.
Please note that the conversion, if converted to cash, will be added to taxable income.
When you click the What Happens to Unused Leaves box, you can select from the following options:
- Convert to Cash - unused leave hours will be converted to cash, per the employee's hourly rate.
- Carry Over to the Next Period - unused leave hours will be carried over to the next leave period.
- Forfeited - unused leave hours are forfeited.
Finally, when you click the What Happens to Unused Leaves upon Termination box, you can select from the following options:
- Convert to Cash - it means that unused leave hours are converted to cash upon termination or resignation, and will be added to the employee's final pay.
- Forfeited - unused leave hours are forfeited upon termination or resignation.
Click Add. You will be led back to the Leave Entitlement page.
Note: If an employee has negative leave credits, when Leave Conversion Convert to Cash occurs, the employee will be deducted for the amount of the negative leave credit he has.
You can edit the Leave Entitlements you have created. Click the Leave Entitlement you would like to edit. The Edit Leave Entitlement box will pop up. Click Save afterwards to finalize. Otherwise, click Cancel.
You can also delete the Leave Entitlements you have created. Leave Entitlements can be deleted one at a time or simultaneously. To delete one at a time, tick the box of the Leave Entitlement you would like to delete and click the Trash button next to the Add Leave Entitlement button.
A warning prompt will pop up.
Click Yes. Otherwise, click No.
If you want to delete all Leave Entitlements simultaneously, click the tick box at the first column and a Trash button will appear next to the Add Leave Entitlement button. All of the boxes will be ticked. You can untick the boxes for the Leave Entitlements you do not want to delete. Click the Trash button.
You are now ready to add a new Leave Entitlement.