Assigning Accrued Annual Leave to an employee

Assigning Accrued Annual Leave to an employee % rule, hourly leave, part-time workers, time off, annual leave David Rynne

Before you can assign an employee to Accrued Annual leave, it must be enabled by an admin for your company and activated in that employee's office

Once this has been completed any Admin or manager with directory access can update their employee's with the Accrued time off system

What is the Accrued Annual Leave system and how does it work?

In order to be on the Accrued annual leave option, your employee must have their annual leave recorded in hours rather than days.

Accrued annual leave must be applied to the full leave year. If you are applying accrued leave to an employee mid-year, you can add a manual adjustment to represent the leave they were allocated until their accrued leave period begins, and give them a 0% accrual until the switchover date. (see below)

Accrued annual leave is different from Allocated annual leave because at the start of an annual leave year, an employee on accrued annual leave starts with a balance of 0 hours and they must submit timesheets, recording their hours worked, in order to build up annual leave on a weekly basis. This is in contrast to Allocated leave where the full leave entitlement for the year is granted to the employee on the first day of the year.

Employees on Accrued Annual leave must have timesheets turned on and they will only be granted annual leave when their timesheets are submitted and approved.

The rate at which annual leave is accrued is decided by the percentage rule applied to that employee. For example, if you grant them annual leave at 10%, this means if they submit a timesheet showing they have worked 40 hours that week when the timesheet is approved, their annual leave balance will be increased by 4 hours.

If the timesheet needs to be changed, the manager can reactivate that timesheet, this will result in those accrued hours being subtracted from the employee's balance until the timesheet is re-submitted and approved again.

For employees who are not submitting timesheets for one reason or another, eg, if they are on maternity leave, the Manual adjustment option is available to add accrued leave to their balance without the need for timesheets to be submitted. The manual adjustment must be submitted in hours, not days.

If an employee requests more leave than they have already accrued, HRLocker does not prevent this from being submitted, but we will show the time off approver that their balance is lower than their leave request, and allow the time off approver to decide to grant or reject the leave request on a case by case basis.

How to activate accrued annual leave for your employees

To do this, you need to

Select Directory on the black ribbon
Locate the employee
Press View
In the employee's Summary page, press Edit next to their Annual leave entitlement

When you click Edit, you'll see the below screen. To turn on accrual, just select this option from the 'Annual leave calculations' dropdown menu.

When you select this option, a popup window will appear with a warning message and a request that you populate 'How many hours represent 1 annual leave day'
The purpose of this is to convert any potential carryover or manual adjustments from days into hours. Simply enter a value here for what a normal working day for his employee would be.

When you click Change, the employee will now have been switched to Accrued Leave.
Next, you need to tell us what percentage rule to apply to this employee. (Typically, in Ireland and the UK, an employee is entitled to a minimum of 8% of their hours worked as annual leave. If an employee has additional leave entitlements then this percentage can be increased in line with their employment contract.)
You can also set a maximum accrual. In Ireland and the UK, the minimum statutory leave is 4 working weeks per year. (This is typically 160 hours for workers on an 8 hour day but may vary. HRLocker does not apply any pro-rata calculations to this value if an employee joins partway through the year.)