How to create an unpaid leave policy for automatic pay deductions.
You can create an Unpaid Leave policy where any requested leave of this type, is automatically deducted from the employee's pay. (This setting works well if the payroll module is enabled for your company and salaries for employees are configured)
To set up an unpaid leave policy, follow the below steps:
Step 1
Under Settings, click on Leaves and select Leave Policies.
Step 2
Click on Add New to create a new unpaid leave policy for your company.
Step 3
Fill in the name of your policy and other details as explained in this How to create new leave policies and navigate to the Leave pay rate section.
Selecting a partially paid or unpaid option allows you to set up the daily wage calculations for unpaid leaves.
1. Paid leave: no deduction will be added to the employee’s payroll
2. Partially paid leave: a deduction will be added to the employee’s payroll for each leave taken under this policy.
Deduction calculation example:
-
- Partially paid leave: 50%
- Employee’s salary of 3000 AED
- Accepted leave request: 10 days
- Daily wage calculation for this policy: [Basic salary/30 days]
- Deduction calculation: [50% of (3000/30)*10 days] = 500 AED
3. Unpaid leave: a deduction will be added to the employee’s payroll for each leave taken under this policy.
Deduction calculation example:
-
- Employee’s salary of 3000 AED
- Accepted leave request: 10 days
- Daily wage calculation for this policy: [Basic salary/30 days]
- Deduction calculation: [(3000/30)*10 days] = 1000 AED
Conditional pay rate
This setting allows you to set up one policy with different pay rates (Paid, Partially paid, Unpaid) instead of maintaining different policies for each pay rate.
Detailed guide:
How to set unpaid leaves based on the number of leaves taken by an employee
Step 4
Upon saving, assign this policy to the relevant employees as needed using the '>>' icon as shown below or click on move all if this policy is applicable to all employees.
To Unassign employees you can click on the cross 'x' icon or Remove all.
Scroll down and click Next when complete.
Step 5
Confirm or edit the details shown for each employee (Allowance, Pro-rated Days, and Days Used). For example, if one of the employees has already consumed/applied for days of this leave type in the past, you can edit the Used Days column.
Your new leave will be added to your list of leave policies and you can make edits as needed by clicking on the pencil icon.
