Why This Matters #
At HRSimplified, we believe businesses should spend less time worrying about admin and more time focusing on their people. Managing leave effectively is a big part of that.
Annual leave forfeiting helps you:
- Control leave liability
- Encourage employees to take time off
- Stay aligned with company policy and labour practices
- Avoid excessive leave accumulation
Where to Configure Leave Forfeiting #
To access the leave forfeiting settings:
👉 Settings → Leave
Scroll to Leave Rules and System Behaviour
You will find:
- Annual Leave Forfeit (On/Off)
- Annual Leave Forfeit Type
- Annual Leave Forfeit Period
⚠️ These are company-level settings and apply to all employees.
How Leave Forfeiting Works #
1. Annual Leave Forfeit (On/Off) #
OFF:
- Employees can accumulate unlimited annual leave
- No automatic balance reduction occurs
ON:
- The system enforces a maximum leave accumulation limit
- Any excess leave is automatically reduced
2. Annual Leave Forfeit Type #
Choose how the leave cycle is calculated:
Option A: Company Set Date #
- Uses a single leave cycle for all employees
- Typically aligned with:
- Financial year-end
- Calendar year
- Best for consistency and simpler administration
Option B: Employee Anniversary #
- Each employee has their own leave cycle
- Based on their start date
- More personalised, but slightly more complex to manage
⚠️ Note: #
If forfeiting is enabled, selecting a “no forfeiting” type is not applicable in the current UI.
3. Annual Leave Forfeit Period #
Defines how long leave can accumulate before forfeiture applies.
- Maximum: 18 months
Examples:
- 12 months → Max = 1 year’s leave
- 18 months → Max = 1.5 years’ leave
The system calculates the cap based on:
- Employee leave entitlement
- Selected forfeiture type
4. Automatic Monthly Processing #
When enabled:
- The system runs a check monthly
- If an employee exceeds the allowed leave balance:
- The excess leave is automatically forfeited
This ensures continuous control of leave liability without manual intervention.
Important Notes #
- Applies only to Annual Leave
- Configured at company level
- Works automatically once enabled
- Maximum forfeiture period is 18 months
- If disabled, leave accumulates without restriction
- Employers must ensure compliance with local labour laws
Recommended Best Practice #
Before enabling forfeiture:
✔ Clearly define your leave policy
✔ Choose between Company Cycle or Employee Anniversary
✔ Communicate the policy to employees
✔ Ensure employees have a fair opportunity to take leave
Summary #
Annual leave forfeiting in HRSimplified gives you a structured, automated way to manage leave balances across your organisation.
By setting clear limits and letting the system handle enforcement, you reduce admin, improve compliance, and create a healthier work environment for your team.
