Assigning Accrued Annual Leave to an employee

Before assigning an employee to Accrued Annual Leave, it must be enabled by an admin for your company and activated in the employee's office. Here’s a comprehensive guide on enabling and managing the Accrued Annual Leave system in HRLocker.

Overview of the Accrued Annual Leave System

• Activation Requirement: Must be enabled for both the company and the relevant office.
  • To enable the option to allocate leave in hours please see Enabling the option for Accrued and Hourly annual leave

• Full-Year Application: Accrued annual leave must be applied to the full leave year. If applied mid-year, add a manual adjustment to represent the leave allocated until the accrued leave period begins and set a 0% accrual until the switchover date.
• Leave Calculation: Employees start with a balance of 0 hours and accrue leave weekly based on approved timesheets.
• Accrual Rate: The rate is determined by a percentage rule. For example, 10% accrual means 4 hours of leave for 40 hours worked.

Assigning Accrued Annual Leave to an Employee

Once Accrued Annual Leave is enabled for the company and relevant offices, you can assign it to employees.

• Access the Directory:

  • Select Directory from the main menu.
  • Locate the employee.

• Edit Annual Leave Entitlement:

  • In the employee's summary page, press Edit next to their Annual Leave Entitlement.

• Select Accrued Leave:

  • From the Annual Leave Calculations dropdown menu, select Accrued Leave.
  • A popup window will appear with a warning message and a request to populate "How many hours represent one annual leave day." This converts any carryover or manual adjustments from days into hours. Enter a value that represents a normal working day for the employee.

• Confirm and Set Accrual Percentage:

  • Click Change to switch the employee to Accrued Leave.
  • Set the percentage rule for the employee (e.g., 8% for minimum statutory leave).
  • Optionally, set a maximum accrual based on statutory or company policy.

Managing Accrued Annual Leave

• Timesheet Submission: Employees must submit timesheets, and leave is accrued based on approved timesheets.
• Manual Adjustments: For situations like maternity leave, manual adjustments can be made in hours without needing timesheets.
• Exceeding Leave Requests: 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.

Viewing Annual Leave Allocation: Hours vs. Days

• Time Off Graph: The graph will show leave allocation in hours. Switching to the days view will follow the Working Time Act of 1997, rounding fractions of days to the nearest half-day to comply with the law. This rounding ensures compliance but may show slightly different numbers from the hours view.

Time Off Graph:

• Hours View: Accurate reflection of leave hours.
• Days View: The hours divided by the number of hours that were set in a standard day for annual leave.

• Hours View: This view shows the exact number of leave hours your employees have. It directly reflects the hours they have available for leave, providing an accurate picture of their leave entitlement.

• Days View: When switching to the days view, HRLocker follows the Working Time Act of 1997, which prohibits deducting fractions of days from an employee's annual leave entitlement. Therefore, if an employee has a fractional leave entitlement (e.g., 0.27 of a day), it will be rounded up to the nearest half-day (e.g., 0.5 days) to comply with the law.

So, in the days view, you might see slightly different numbers because of this rounding to comply with the Working Time Act of 1997.
Since your employees are allocated their leave in hours, the Time Off graph is accurate when viewed in hours. Viewing in days will only be an approximation.

For further assistance or detailed guidance on managing accrued annual leave in HRLocker, please contact HRLocker support.