Configure Leave Credit and Lapse Rules

For each leave type, there are credit and lapse rules. Leaves are credited to an employee on the basis of their applicability  and leaves are lapsed as per the defined rules. Configuration of leave lapse rules decides which leave type can be forwarded and which leave types get lapsed at the end of the year.

For example: An Earned leave is carried forward to the next year whereas Casual leaves are lapsed at the year end. This help page demonstrates step-wise instructions to configure leave lapse rules and how leave(s) can be credited to an employees’ leave account.

Note: In Free Payroll and HR software, only a limited number of leave types are available. Upgrade to a paid version to avail the functionality to create multiple leave types and configure their credit/ lapse rules.

You can configure leave credit rules for leave types according to your requirements. To configure leave credit rules, you need to:

  1. Log into the system as HR manager/ HR admin.
  2. Go to Settings page and scroll down to Employee Self Services Settings. Click Setup Leave Types  link.The Setup Leave Types page appears, as shown in Figure 1.
  3. Click the corresponding Edit icon for a specific leave type to configure its rules.leave-Setup-leave-type1

    Figure 1

    The Setup leave Types page appears, as shown in Figure 2.

    Figure 2

  4. Setup workflows and configure leave rules. Learn how to configure leave rules.

    Configure leave credit rules

    Note: Configuration of credit and lapse rules for Compensatory Off and Work From Home leave types are similar to regular leave types.

  5. Go to Leave Credit Rules section on the page, as shown in Figure 3.
  6. Specify that the leave is creditable or not by selecting Yes/ No from the Is Leave Creditable field. You can select No option in this field for leave types that you want to provide to employees when required but don’t want to credit these leave types in their account every year. For example Birthday leave, Maternity leave, and Higher Education Leave.If you select Yes option then leave credit related options appear.These options are:
    • Rules for mid period joining: This option is applicable to employees who have joined the company in the middle of the year. The Same rules as above option is  selected by default to specify that the same rules will be applicable to employees who have joined in the middle of the year as the rules for employees who were there at the beginning of the year.
    • Credit Date: This option allows you to specify how leave should be credited to employees’ leave account. The Manual Credit as and when required option is selected by default to credit leave to employees as and when required.
  7. Select Applicable to all employees to whom the leave is applicable checkbox from Applicability field if the leave is applicable to all the employees of the company, as shown in Figure 3.

    Figure 3

    Configure Lapse Rules

  8. Configure the leave lapse rules by selecting the appropriate option from the Lapse Rules field, as shown in Figure 4.The available options are:
    • Set the balance to 0: Select this option, if you don’t want to carry forward the leave balance to next year.
    • Set the balance to _, if the current balance is more than _: Select this option, if you want to carry forward a limited number of leave to next year. You also need to specify the number of leave to carry forward and the maximum no of leave balance after which the leave lapse in both the text boxes respectively.
      Input a number in the textbox to set the limit.

      Figure 4

    •  Transfer leave to another leave type: Select this option if you want to transfer the selected leave type to another type of leave. This option allows you to either transfer all the leave to another leave type by selecting the Full Leave option or transfer a limited number of leave by selecting the Max number of days option and then specifying the number of leave to be converted in the Credit amount text box, as shown in Figure 5.

    Figure 5

  9. Click Save to save the leave credit rules that you have configured and then click OK on the message that appears. The leave rules are successfully saved and a message suggesting the same appears on the screen.

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