HRSimplified offers an automated leave accrual system that ensures accurate leave balance management for employees. This system handles various types of leave based on company policies, including annual, sick, special, study, and family leave.

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Understanding the Leave Accrual System #

In HRSimplified, leave is calculated automatically based on cycle duration and leave days per cycle. You can configure the settings to fit your company’s leave policies.

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Types of Leave and Their Calculations #

1. Annual Leave #

• Accrual Basis: Annual leave is accrued monthly. The system divides the total number of leave days by the cycle duration (typically 12 months) and updates the balance monthly.
• Monthly Increase: Leave balance is updated on the first day of each month, adding the leave amount according to the cycle.
• Example: If an employee has 15 annual leave days per year, they receive 1.25 days each month (15 days / 12 months).

2. Sick Leave #

• Full Balance at Start: Employees begin with the full amount of sick leave for the entire cycle.
• Usage Deduction: Leave balance is reduced as sick leave is used.
• Cycle Reset: At the end of the cycle (e.g., every 36 months), the employee receives a new balance based on their entitlement and start date.
• Example: If an employee is entitled to 30 sick days over 36 months, they start with 30 days, and the balance decreases as they use it.

3. Special, Study, and Family Leave #

• Similar to Sick Leave: These leave types begin with a full balance at the start of each cycle and decrease as the employee uses them.
• Cycle Reset: Balances reset at the end of each cycle (typically 12 months).
• Example: For 5 family leave days in a 12-month cycle, employees start with 5 days, which reset at the end of the year.

4. Unpaid Leave #

• No Balance: Unpaid leave does not have a balance but can still be requested and approved by the system. It is not included in the automated accrual calculations.

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Managing Leave Calculations #

To manage leave balances and accrual settings, you must access the employee profile in HRSimplified.

Location in the System: #

1. Navigate to HR Administration > All Employees.
2. Select the employee whose leave settings you wish to configure.
3. Adjust the Leave Days per Cycle, Cycle Duration, and Increase per Cycle fields based on company policy.

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Setting Up Leave Automation #

Follow these steps to automate leave calculations for each employee:

1. Cycle Duration: Define the number of months in each leave cycle (e.g., 12 months for annual leave, 36 months for sick leave).
2. Leave Days per Cycle: Enter the total number of leave days granted for each cycle.
3. Increase per Cycle: For accruing leave types like annual leave, set the monthly increase amount.
4. Balance Updates: Leave balances are updated automatically, either monthly (for annual leave) or at the end of the cycle (for sick, family, and study leave).

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Important Notes: #

• Auditing and Records: All changes to employee records, including updates to leave balances, are automatically recorded by the system. This audit trail ensures that any changes made to leave data are logged for compliance and tracking purposes.
• Leave Policies: Ensure that your leave policies align with the settings in HRSimplified to avoid discrepancies in leave accrual and usage.
• Avoid Manual Adjustments: While HRSimplified automates leave calculations, manual adjustments can be made if necessary.