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ESS Leave Forfeit

Leave Forfeit process will forfeit leave accruals that has not been utilized for a specific period.

 

The system allows employers to configure selected leave types so that after a predefined number of months, the leave that has exceeded this time will be written off. By Default, Lieu Leave is setup to FORFEIT after 12 months of in-activity.

Process

  1. Configure the "Leave Type" and "Age in Months" for time validation in process ESS025.
  2. Enable Process ESS025 - Forfeit leave for [Leave Type] when "leave balance" age is greater than [N] months.
  3. Once the process has executed validate the "Leave Adjustment" to approve the adjustment.

Example:
An employee has an accrual of 5 hours of leave every month from January 2014. By December 2014, the employee has 60 hours of leave accrued. By December 2015, the employee has accrued an additional 60 hours leave.

 

During 2014 to 2015 employee has taken 40 hours leave. These 40 hours is reduced from the accruals from January to August 2014 (oldest leave used first (FIFO Method)).

 

When the Leave Forfeit process is run in November 2015, the system looks for leave that is over 12 months old and has not been used. In our example, 12 months from November 2015 is November 2014. Therefore leave accrued for September and October 2014 is over 12 months old and is UNUSED. Hence, these leaves will be forfeited from the system.

 

The table below shows the details of this process.The available accrual of 10 hours for September and October in 2014 is forfeited. Refer to Figure 1.

 

A scheduled process will create leave adjustment entries automatically. Refer to Figure 2.

 

A leave adjustment will be created for all lieu balances that have not been utilized once the process runs automatically. Refer to Figure 3.

 

Once the approver approves the leave adjustment, then the lieu leave balance will be reduced.

Figure 1: Details of Leave transactions to explain the “Leave Forfeit” process
 

Figure 2: Leave Forfeit Process
 

Figure 3: Leave Adjustment