1. How automated pausing of Leave accrual works.
The automated pausing of monthly accrual leave allowance is a feature designed to streamline HR tasks by automatically pausing the accrual of leave allowances when employees take certain leave, for example, unpaid leave. The system will automatically prorate or pause the accrual based on the total number of days taken from specified leave policies.
2. How to Enable the Feature in New & Existing Leave Policy
To enable this feature for new or existing leave policies, follow these steps:
- Go to Settings > Leaves policies
- For new policies, you will find an option to enable monthly accrual pausing during the creation process.
- For existing policies, edit the policy and look for the monthly accrual section.
Check the box to enable the automatic pausing of monthly accrual for the policy.
5. Select which leave types (e.g., unpaid leave, unpaid maternity leave) that will trigger the pause.
3. How the Pausing Leave Accrual Calculation Works
The system calculates the pause in accrual by considering the total number of days taken from all specified leave policies. Here are some examples:
Example 1:
- The vacation leave policy allows for 2.5 days of monthly accrual and using calendar days.
- An employee takes 14 days of unpaid leave in January.
- The calculation: 2.5 days / 31 days * 14 days = 1.13 days will be paused
- The employee will only accrue 2.5 - 1.13 = 1.37 days for January.
Example 2:
- The vacation leave policy allows for 2.5 days of monthly accrual and using calendar days.
- An employee takes unpaid leave from January 20 to February 10 (21 days total).
- The calculation for January: 2.5 days / 31 days * 11 days = 0.89 days will be paused
- The employee will only accrue 2.5 - 0.89 = 1.61 days for January.
- For February: 2.5 days / 28 days * 10 days = 0.89 days will be paused
- The employee will only accrue 2.5 - 0.89 = 1.61 days for February.
4. How Minimum Days Requirement Feature Works
This feature ensures that your company remains compliant with local labor laws, such as those in KSA, which require a minimum number of days before pausing monthly accrual.
Compliance with KSA Labour Law
The Kingdom of Saudi Arabia (KSA) labor law requires that the pausing of monthly accrual for leave allowances should only take effect if an employee takes a minimum of 21 days of unpaid leave annually. This law ensures that employees' leave accruals are not affected for shorter periods of unpaid leave.
Enabling the Minimum Days Requirement
To enable the minimum days requirement feature when creating or configuring a leave policy, HR administrators should:
- Go to Settings > Leave policies Create or edit existing leave policy.
- Look for the option related to pausing monthly accrual.
Enter a total number of days in the field that specifies the minimum number of days required before pausing accrual can occur.
4. Save the policy to ensure that the system automatically enforces this rule.
5. What Information Is Available to Affected Employees
Affected employees will have access to several pieces of information regarding their leave and accrual status. Providing this information helps maintain clear communication between HR and employees regarding leave policies and their effects on leave balances.
Leave Balance Breakdown
Employees can view their total paused monthly accrual within their leave balance breakdown. This transparency helps them understand how taking unpaid leave affects their accrued leave days.
Leave Request Warnings
When submitting a leave request that will trigger the pausing of monthly accrual, employees will receive a warning. This ensures they are aware of the implications before finalizing their request.
6. Known Limitations
When configuring the pausing monthly accrual feature within your leave policy settings, please keep in mind the following known limitations:
- Configuration Lock-In: Once you have set up the pausing accrual configuration, you cannot edit these configurations. Ensure that you review and confirm all settings before finalizing them.
- Applicability to New Requests: The pausing accrual will only affect new leave requests created after the configuration is enabled or if existing leave requests were approved. It does not retroactively apply to previously created leave requests.
- Type of Days Conversion: If your leave policies use different types of days (Calendar Days vs. Working Days), the system will automatically apply a conversion when calculating the pause in monthly accrual.
- Adjusted Leave Days Calculation: When a leave request’s total days are adjusted, the calculation for pausing monthly accrual will consider the start date of the original leave request as the starting point for the adjusted period.