Leave Codes

Leave Codes is used to define and configure "Leave" in the system. A corresponding paycode is automatically created for each leave code.

Reports

Leave Code Listing

Steps to create a leave code

Click on the "Green Plus Sign". This will open the "Edit Form"
Enter below details
1. Code - Enter a code to define the leave. The code is alphanumeric and should be abbreviated to easily identfy the leave description. Example "ASL10" can be used for "Annual Sick Leave" where the Privilege is 10 days.
2. Description - Enter the detailed description of the leave code.
3. Category - The Category identifies the type of leave. The type of leave defines how calculations impact the current pay. This includes:
  1. Annual
  2. Bereavement
  3. Leave without Pay - The rate and line total is always zero. Hours for "Leave without pay" is deducted from "Normal Hours".
  4. Long Service
  5. Maternity
  6. Others
  7. Sick Leave
4. Workflow - Workflow is used to determine how the leave entries are approved.
  1. Users in the selected workflow will be the final approvers.The leave application will go through the "User Workflow" in "User Maintenance" followed by the "Activity Type" workflow.
    
    For example, lets say we need the "team leader" approve leave for all employees in a department, and "Maternity leave" is approved by the "team leader" and then by the HR team. To achieve this, create the workflow as follows:
    Create a "Approval Workflow" with the team leader and assign the workflow in "User Maintenance" for the employees.
    Create a "Approval Workflow" with the HR user and tag the workflow to the "Maternity" leave code.
    When an employee applies for annual leave it will be approved by the team leader.
    When an employee applies for "Maternity" leave it will be approved by the team leader and then HR.
5. Override Workflow - When "Override workflow" is enabled, leave applications will be directed to the selected workflow in 4 above.
  1. For example, lets say you want "Leave Without Pay" to be approved by the supervisor, and that this leave should not follow the "User Workflow". Use the "Override Workflow" to assign a workflow that is the Employees Supervisor.
6. Minimum Balance Limit - This defines the minimum balance for leave . It allows users to configure hours of leave that can be taken by an employee who does not have sufficient leave balance. The "projected Leave balance" will be summed to get the "current leave balance" for leave that accrue periodically. For example:
  1. "Employee A" has 8 hours of annual leave balance. Minimum Balance Limit for annual leave is 0.
    1. "Employee A" will be able to apply for only 8 hours of leave.
  2. "Employee B" has 8 hours as the annual leave balance. Minimum Balance Limit for annual leave is -4.
    1. "Employee B" will be able to apply for 12 hours of leave.
7. Privilege - This is the total number of hours allocated for a Leave. For example, an employee is entitled to 3 weeks Annual leave per annum that is 15 working days. Privilege is 120 hours (15*8), assuming hours worked per day is 8.
8. Min Allowed - This is the minimum number of hours of leave an employee can take at any one time.
9. Max Allowed - This is the maximum number of hours of leave an employee can take at any one time.
10. Min Service Yrs - This is the number of service years after which the leave is allocated to the employee.
11. Entitle After Years - This is the period of service after which an employee can apply or this leave.
12. Years Valid - This is the years for which the leave is valid. Years Valid is only applicable for Long Service leave.
  1. For example the Years Valid is set as 3. Employee has a long service leave added on 01/01/2016. The valid date on the leave allocation screen will be automatically set to 01/01/2016 to 31/12/2019.
  2. The leave will be removed after 2019 if rollover is set to No. If roll over is set to Yes, the leave will extended to the following year only.
13. Apply Days - This is set to restrict users to apply leave before a certain date. For example +10 means you have to apply 10 days before the 'leave start' date. -10 means you can apply for leave 10 days after the 'leave start' date.
14. One Time Accrual
  1. When set to "Yes", the full leave is allocated at the start of the year. The "Accrual Type" and "Max Accrue" are not used.
  2. When set as "No", leave is allocated at every pay update and is based on "Accrual Type" and "Max Accrue" values.
  3. For example, Leave type such as Annual Leave accrues every pay period whereas Leave Type such as Sick Leave and Bereavement Leave are given at the start of the year.
15. Accrual Type - Accrual Type can be "Standard or "Proportional.
  1. If the "Accrual Type" is "Standard", the amount allocated per pay is the "Privilege" amount divided by the pay frequency. For example an employee has allocation of 80 hours for annual leave and is paid monthly, the allocation equals 80/12 that is 6.66.
  2. If accrual is set as proportional then the allocation is calculated as (Privilege / Pay Frequency) multiple by (Total Hours Worked / Total Hours per Pay).
    1. Total Hours Worked is the sum of the hours for all pay codes which have Calculate Leave set as Yes.
    2. Total Hours per Pay is the hours set on the employee profile.
    3. For example an employee has allocation of 80 hours for annual leave and is paid monthly. For the month for January has 16 hours with calculate leave marked Yes then the accrual is calculated as (80/12)*(16/8) that is 13.33
16. Max Accrue - This is the maximum hours that can accrue for a leave
17. Rollover
  1. When set to "Yes"
    1. The leave balance will rollover to the new year when Year End is performed.
    2. If FMIS Integration is turned ON and "Allowable Carry Over > 0"
      1. GL Journal with the Accrual will be created
      2. If there is a Pay Rate Change, An Adjustment Journal will be created for any previous leave balance
  2. When set to "No"
    1. Leave balance is not carried over to the next year
18. Rollover Method - Rollover Method determines the leave allocation dates for an employee.
  1. Calendar - If the rollover method is "Calendar",leave allocation and rollover dates will be determined using pay calendar setup, for example annual leave allocation for year 2020 will have leave start and end dates as 01/01/2020 to 31/12/2020.
  2. Anniversary - If the rollover method is "Anniversary",leave allocation and rollover dates will be determined using the employee's employment start date,for example annual leave for an employee with start dates as 15/05/2020 will have leave start and end dates as 15/05/2020 to 14/05/2021.
  3. Other - If the rollover method is "Other" users will be able to set the leave start and end dates when allocating leave to employees. This is used by companies who use the financial year dates to manage leave.
19. Allowable Carry Over - This is the hours of leave that will be rolled over to the new year as "Balance Brought Forward".
20. Notes - This is an open text field, users can enter desired content.
21. Void - Void records will be "Disabled" and will not appear in any lookups.
22. Save - Used to Save changes.

Important Note:

FMIS Integration Transactions require the following configuration:
1. Enable integration to General Ledger in menu "Integration ~> Integration Setup"
2. Leave code should have "Rollover" set to "Yes"
3. Leave code should have "Allowable Carry Over > 0"
For Leave Codes that meet the above criteria
1. Accrual Journals are created when the Pay is closed.
2. "Pay Rate Change Adjustment" Journals are created if there is a "Balance" on this Leave code before the Pay Rate was changed.
Special Case:
1. When "One Time Accrual = Y" and "Rollover = Y", the system will Allocate the "Privilige" amount at the begining of the year, for every year.
2. When "One Time Accrual = Y" and "Rollover = N", the system will Allocate the "Privilige" amount at the begining of the year once only.

Figure 1: Leave Code Maintenance Form