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How to Choose the Correct Leave Entitlement and Period of Entitlement Settings?
How to Choose the Correct Leave Entitlement and Period of Entitlement Settings?

Upfront leaves. Accrued leaves. Calendar Year. Anniversary of employee's date of hire.

Nicholas avatar
Written by Nicholas
Updated over a week ago

Leave Entitlement and Period of Entitlement settings in Talenox are determined by your company's leave policy.

Before deciding on the specific setting, here is the definition between leave entitlement and period of entitlement options:

1. Leave Entitlement

For the "Available Upfront (prorated by either completed months or days for an incomplete period)" option, when an employee joins the company / resigns from the organisation halfway through the period of entitlement, his / her leave entitlement will be prorated according to the amount of completed days/months have passed.

This also means that leaves will be available upfront all at once to your employees at the start of a new period of entitlement.

For example, if an employee's period of entitlement is based on 'Calendar Year', and his / her leave entitlement is 7 days for that year, he / she will be able to take all 7 days of leave from the start of 1 January of the year.

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For "Accrued by completed month/day", this option means that leaves will be earned by the employee throughout the year according to the completed months / days that have passed.

As an example; for an employee with 7 days leave entitlement with a 'Calendar Year' period of entitlement, when he / she checks his / her leave balance in July, his / her leave balance will be accrued based on the number of completed months that has already passed:

  • 7/12 x 7 completed months = 4 days (rounded down)

Hence, the employee will have 4 days of accrued leaves in her leave balances.

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2. Period of Entitlement

Calendar Year means that leave entitlement is calculated from 1 Jan to 31 Dec. Entitlement period for all employees will be the same (Calendar Year). If an employee is hired on December, that year is still counted as 1st year and January of the following year will 2nd year. For example:

Hired Date: 1 December 2019

Year 1: 1 - 31 December 2019

Year 2: 1 - 31 December 2020

It works the opposite for Anniversary of employee's date of hire. 1st year will always be calculated from employee's hired date. Also, all employees will have different leave cycle because it's based on employee's hired date. As an example:

Hired Date: 1 December 2019

Year 1: 1 December 2019 - 30 November 2020

Year 2: 1 December 2020 - 30 November 2021

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