Overview #

HRSimplified does not currently include a dedicated Leave Encashment transaction type. When an employee’s leave is encashed through your payroll process, the leave balance must be adjusted manually to reflect the reduction in available leave.

For audit purposes, it is also recommended that an Employee Note is created and stored on the employee’s profile to document the encashment and any supporting information.

---

Step 1: Update the Employee’s Leave Balance #

Navigate to:

HR Administration → All Employees

1. Locate the employee.
2. Click Actions → Edit.
3. Open the Leave Information tab.
4. Locate the relevant leave type (for example, Annual Leave).
5. Update the Current Balance by deducting the number of days that were encashed.
6. Click Update to save the changes.

Example #

Description	Value
Current Annual Leave Balance	15.00 Days
Leave Encashed	1.50 Days
New Annual Leave Balance	13.50 Days

The leave balance will immediately reflect the updated value.

---

Step 2: Create an Employee Note (Recommended) #

To maintain a clear audit trail, it is recommended that a note is recorded against the employee profile explaining the leave encashment.

Navigate to:

HR Administration → All Employees → Actions → Notes

Create a new Employee Note containing:

• Date of the leave encashment
• Number of leave days encashed
• Reason for the adjustment
• Payroll reference number (if applicable)
• Any supporting comments

---

Step 3: Make the Note Visible to the Employee #

When creating the note, you have the option to:

Visible #

Enable the Visible option if you would like the employee to view the note through their Employee Self-Service portal.

This promotes transparency and ensures the employee has access to the information recorded on their HR file.

Request Signature #

Enable Request Signature if you require the employee to formally acknowledge the leave encashment.

The employee will be able to review the note and electronically sign it within HRSimplified.

---

Step 4: Attach Supporting Documentation #

The Notes feature also allows supporting documents to be attached.

Examples include:

• Payroll reports
• Leave encashment approval forms
• Employee requests
• Management approvals
• Signed documentation

These attachments become part of the employee’s permanent HR record and provide additional supporting evidence for future audits.

---

Best Practice Recommendation #

Whenever leave is encashed:

1. Process the payment through Payroll.
2. Adjust the leave balance in HRSimplified.
3. Create an Employee Note detailing the encashment.
4. Attach any supporting documentation.
5. Make the note visible and request employee acknowledgement where required.

Following this process ensures that leave balances remain accurate while maintaining a complete audit trail for compliance and employee record-keeping purposes.