Overview
If you have the Leave module enabled, all employees with an active job position in Talexio will have a leave balance. Each leave type has its own balance, and the amount available to an employee depends on factors such as their job schedule, start date, and any leave carried forward from previous years. But what happens when an employee’s leave balance runs out? Can leave be booked as unpaid?
Permissions
To set up and manage leave types, you will need the Manage Leave Type permission, which must be assigned globally.
Additionally, the Request Leave permission must also be granted to employees to request leave. The permission Approve Leave should be granted to this who can approve the requests of others.
Booking Paid Leave with no Paid Entitlements
When approving a leave request for an employee as Full Pay and the employee has no leave entitlements available, the error (shown right) will be displayed when attempting to book leave.
To book this leave, an adjustment to the employee's entitlements will be needed. More information on this process can be found here.
Booking Unpaid Leave
For each leave type, you can decide whether unpaid leave is allowed or not allowed to be requested. This is done in the Leave Type settings. Depending on whether it is allowed or not will impact what happens when employees make leave requests when their paid entitlements have been used.
The following steps are required to enable this setting:
- Go to the Leave module
- Select Leave types.
- Click on More for the respective leave type and select More options
- Turn on the toggle for Allow Unpaid.
- Click Save.
When Unpaid Leave is Allowed
When a leave type has been set to allow unpaid leave, an employee who has used all their paid entitlements can continue to request leave.
When they do this, they will not see the pay type of the the leave request, but they will see a warning that they no longer have any entitlements.
The employee may proceed with the request by clicking Submit Leave Request.
Following this, an approver with the Approve Leave permission can then approve the request. By default, since the employee has no paid entitlements remaining, the request's pay type will be unpaid.
When Unpaid Leave is not Allowed
If the leave balance has been used up and unpaid leave is not activated, the error (shown right) will be displayed when attempting to book leave.
Instead, an approver with the Approve Leave and the Manage Payroll permission can then request on the employee's behalf and book the leave as unpaid.
When unpaid leave is not allowed and there is an instance where unpaid leave needs to be booked, an approver with Approve Leave permission is not enough and they will not be allowed to book the leave. It requires the Approve Leave and the Manage Payroll permission.
Approved Unpaid Leave
When an employee has approved unpaid leave, their base entitlements will be reduced because the employee does not accrue the leave for the period unpaid. This means when the employee uses the full annual paid entitlements, and then books unpaid leave, the remaining balance will show as a negative amount, because the leave taken is greater than the base entitlements.
|
Before unpaid leave is booked |
After unpaid leave is booked |
Calculation
The calculation of the Base Entitlement when there is unpaid leave taken is:
Global Base Entitlement * (Total hours worked / Total hours worked by a Full Time employee per year)
192 Hours * (2072 / 2080) = 191.2615 Hours