[Accrual by rule] Accrual for an employee starting/leaving during any period

Before getting started

This article is about managing the accrual of leave for employees who start at or leave a company during the accrual period, in scenarios where leave is credited on a yearly basis.

This article only covers the accrual via rules engine.

Use case: In company E, accrual is completed on January 1st for the calendar year.
  • Employee C1 joined the company on 10 May. Prorated leave therefore needs to be provided, which they will be entitled to when they arrive.
  • Employee C2 left the company on 6 June. Their excess leave (acquired since the beginning of the year) needs to be removed as soon as their contract end date is known.

Default functioning of the accrual engine

How does the accrual engine account for the arrival of an employee during the accrual period?

The functioning of the accrual engine described below is the default when it is set up using the rules configured in automatic mode. In other words, this is what will happen without manual intervention.

When an employee:

  • Starts at the company during the accrual period,
  • AND benefits from a yearly accrual of leave,
  • AND arrives after it has been run for the year,

The accrual engine will credit the prorated leave that the employee is entitled to on the last day of the month in which they arrive.

For a rule where leave is credited annually on January 1st for the calendar year: 
Martine starts at the company on June 6th. In the evening on June 30th, she acquires her entitlement for the current accrual period.

How does the accrual engine account for the departure of an employee during the accrual period?

The functioning of the accrual engine described below is the default when it is set up using the rules configured in automatic mode. In other words, this is what will happen without manual intervention.

When an employee:

  • Leaves the company during the accrual period,
  • AND has benefited from a yearly accrual of leave,

The accrual engine removes the excess leave that they were given at the start of the accrual period and does this on the last day of the month once their departure date is known. A departure date is said to be known as soon as it is entered into the employee page/HR file.

For a rule where leave is credited annually on January 1st for the calendar year:
Martine leaves the company on 6 June. Her contract end date is entered in Lucca on March 20th. In the evening on 31 March, she is debited the overpayment for the period of 7 June to 31 December.

Adjustment on a chosen date of the month (manually)

Some companies want the credit to be allocated on the day on which the employee starts, without waiting for the end of the month. It is not possible to do this automatically in Timmi Absences, but it is possible to credit the employee manually on the day on which they arrive.

How can I credit an employee on the day on which they arrive?

The option to trigger an adjustment manually without waiting for the end of the month is provided on the To do list page.

The section "Accrual adjustments for arrivals/departures" can be used to:

  • Simply identify which employees are starting or leaving,
  • Credit an employee with the amount calculated by Timmi Absences,
  • Edit the amount to be credited if this is not correct.

There are several possible scenarios:

  • Scenario 1 → The amount proposed is correct: Simply "Adjust" the amount directly in the "Accrual adjustments for arrivals/departures" section. This triggers a credit. The accounting date for this will be the day of the action. The employee will be able to use their entitlement from this date onward.
  • Scenario 2 → The amount proposed is incorrect: This can be edited.
    • Scenario 2.1: → Editing the rule settings – this is therecommended method. The edit will apply to all employees who are eligible for this rule and will joining the company in the future. (See the various calculation methods proposed here.)
    • Scenario 2.2 → Manual correction. This edit will be needed for each new starter if you choose to do a manual correction for each individual.

How can I debit an overpayment to an employee once their departure date is known?

The same principle applies as for employees starting during the accrual period. A debit operation will be completed.

Page content

Was this article helpful?
1 out of 1 found this helpful