How to record a career break/unpaid leave in annual leave entitlement

unpaid leave, career break, no annual leave accrued,

When an employee takes a career break or unpaid leave, it is essential to update their annual leave entitlement to reflect this period correctly. Employees on a career break or unpaid leave do not accrue holidays, and this needs to be accurately recorded in HRLocker. Here’s how to do it.

Steps to Record Career Break/Unpaid Leave

Access the Employee’s Profile

  1. Log in to HRLocker:

    • Log in to your HRLocker account.
  2. Navigate to the Directory:

    • Select the Directory and choose the relevant employee.

Edit Annual Leave Entitlement

  1. Open Annual Leave Entitlement:
    • On the employee’s summary page, locate the section for Annual Leave Entitlement and click Edit.

Add a New Row for Unpaid Leave

  1. Add a Row:

    • Click Add New Holiday Entitlement Rate to add a new row.
  2. Set to 0 Days/Hours:

    • Set the holiday entitlement for this row to 0 days/hours to reflect the period of unpaid leave.
  3. Adjust Dates:

    • Change the Last Day of the previous row to the day before the unpaid leave starts.
    • Click Submit to save the changes. This will set the Start Date of the new row to the first day of the unpaid leave.

Add a New Row for Post-Unpaid Leave

  • Add Another Row:

    • Click to add another new row.
  • Adjust Dates:

    • Change the End Date of the unpaid leave row to the date the unpaid leave ends.
    • Click Submit to save the changes. This will set the Start Date of the new row to the first day that paid leave starts again.
  • Set Entitlement:

    • The system will automatically adjust the number of days/hours allocated. For example, if the leave entitlement is 20 days per year and the unpaid leave spans one month, the annual leave entitlement for the year will be recalculated based on the remaining 11 months.
    • Therefore enter in 20 in both paid leave entitlements.
  • Final Submission

    • Click Submit to finalize all changes.

Detailed Example

Assume an employee takes unpaid leave from June 1 to June 30. Here’s how you would adjust their annual leave:

  1. Adjust Existing Row:

    • Last Day: May 31
    • Entitlement: Current entitlement (e.g., 20 days per year)
  2. First New Row (Unpaid Leave Period):

    • Start Date: June 1
    • End Date: June 30
    • Entitlement: 0 days
  3. Second New Row (Post-Unpaid Leave):

    • Start Date: July 1
    • End Date: December 31
    • Entitlement: Current entitlement (e.g., 20 days per year)

Example Calculation

  • Total Annual Leave Entitlement: 20 days
  • Duration of Unpaid Leave: 1 month (June)
  • Remaining Paid Period: 11 months

HRLocker will automatically adjust the annual leave entitlement for the remaining paid period (11 months). The new entitlement will be calculated as follows:

Rounding to the nearest half day, the adjusted entitlement will be 18.5 days for the remaining part of the year.