When changing the annual leave policy from hire date to fiscal year date, the remaining annual leave will be 'expired' in accordance with the set fiscal year date (January 1). You must reach an agreement with members in advance on whether to carry over or expire annual leave for mid-term and continuous workers, and whether to provide allowance payments if expired.
Before Policy Change (Annual Leave Granted on Hire Date)
If [Settings] → [Annual Leave Settings] → [Annual Leave Grant Settings] is set to grant monthly leave and annual leave based on the member's hire date as shown in the image (example)
Members received annual leave and monthly leave based on their respective hire dates, and the remaining balances at the end of December were as follows.
Before Policy Change | Hire Date | 2023 Granted Amount (Granted on Hire Date) | 2023 Used | 2023 Expired | 2023 Adjusted | End of Dec 2023 Remaining Balance |
Member A | Jan 3, 2022 | 15 annual leave days | 12.5 | 1 unused monthly leave expired | 0 | 2.5 days |
Member B | Aug 28, 2023 | 4 monthly leave days | 2 | 0 | 0 | 2 days |
Member C | Oct 13, 2022 | Total 24 days 9 monthly leave 15 annual leave | 8.5 | 2.5 unused monthly leave expired | 0 | 14 days |
Member D | Mar 17, 2022 | Total 17 days 2 monthly leave 15 annual leave | 14 | 0 | 0 | 3 days |
Member E | Feb 1, 2020 | 16 annual leave days | 15.344 days | 5.75 days → 2022 unused annual leave expired | 0.656 | 3.625 days |
After Policy Change (Annual Leave Granted on Fiscal Year Date)
If you changed the grant policy to fiscal year date in [Settings] → [Leave Settings] → [Annual Leave Grant Settings], such as granting annual leave based on the period worked as of the first fiscal year date (example)
As soon as the policy is changed, the members' remaining balances will change. In particular, you can see that the remaining balances of Members C and D, who were mid-year hires in 2022, changed to 2.5 days and 0 days respectively.
After Policy Change | Hire Date | 2023 Granted Amount (Granted on Fiscal Year Date) | 2023 Used Amount | 2023 Expired Amount | 2023 Adjusted Amount | Remaining Balance After Change |
Member A | Jan 3, 2022 | 15 annual leave days | 12.5 | 1 unused monthly leave expired | 0 | 2.5 days |
Member B | Aug 28, 2023 | 4 monthly leave days | 2 | 0 | 0 | 2 days |
Member C | Oct 13, 2022 | 9 monthly leave, 3.5 annual leave (total days of service / 365 days * 15 days) | 8.5 | 2.5 unused monthly leave expired | 0 | 2.5 days |
Member D | Mar 17, 2022 | 2 monthly leave, 12 annual leave | 14 days | 0 | 0 | 0 days |
Member E | Feb 1, 2020 | 15 days | 15.344 days | 9.375 → 2022 unused annual leave expired | -0.565 | -1 day |
By downloading the [Leave History] report before and after the grant policy change and comparing them, you can more clearly see the differences in granted days and remaining balances for each member.
Shall we compare the detailed annual leave breakdown for each member?
Shall we compare the detailed annual leave breakdown for each member?
When the annual leave grant policy is changed to fiscal year date basis, the remaining balance will expire on the next fiscal year date according to the expiration policy.
For Members A and D, the remaining balance was expired as a result of changing the annual leave policy to fiscal year date basis.
For Member B, since the remaining balance is entirely 'monthly leave,' it is carried over without expiration,
and the monthly leave is scheduled to expire on August 28, 2024 if not used before the 1st anniversary of employment, in accordance with the 2020 Labor Standards Act amendment.For Member D, the amount used in advance was deducted from the granted days, resulting in 15 days being granted.
Post-Change Verification Items
For annual leave where the remaining balance is correct but scheduled to expire on the fiscal year date, after expiration, either pay out as allowance based on agreement with members or carry over using the annual leave adjustment feature.
For annual leave where the remaining balance has decreased and is scheduled to expire on the fiscal year date, after expiration, either pay out as allowance based on the remaining balance before the grant policy change or carry over using the annual leave adjustment feature. For detailed information about the adjustment feature, please click Annual Leave Adjustment Feature Guide on the right.
When the grant policy is changed to fiscal year date, employees hired in 2021 may not receive additional annual leave on the 2024 fiscal year date. For mid-year hires in 2021, although it is the 3rd year by count, the system determines that 3 years have not been reached when calculated based on the hire date. Please configure [Settings] → [Leave Settings] → [Annual Leave Policy Settings] → [Grant Settings] with additional settings so that additional annual leave is granted on odd fiscal year dates.
FAQ
Do I not need to change the employment rules when changing the annual leave grant policy?
Do I not need to change the employment rules when changing the annual leave grant policy?
When changing the grant policy from hire date to fiscal year date, we recommend adding the following clause to the employment rules: 'The calculation reference date for annual paid leave shall be managed on a fiscal year basis (1/1-12/31) for administrative convenience and efficiency, and upon resignation, the number of leave days shall be recalculated based on the hire date to ensure no disadvantage to the member.'
We plan to implement annual leave promotion as part of changing the grant policy to fiscal year date.
Will annual leave carried over through the adjustment feature be included in the leave promotion target amount as of July 1, 2024?
We plan to implement annual leave promotion as part of changing the grant policy to fiscal year date.
Will annual leave carried over through the adjustment feature be included in the leave promotion target amount as of July 1, 2024?
Yes, it will be included in the leave promotion process. If you grant 3 additional days through annual leave adjustment with the adjustment application date set to January 1, 2024, flex will recognize that the member was granted 18 annual leave days in 2024. If the member has used a total of 8 annual leave days by the promotion period, promotion will proceed for the remaining 10 days.
We plan to implement annual leave promotion as part of changing the grant policy to fiscal year date.
Can the annual leave carried over through the adjustment feature be excluded from the promotion target amount?
We plan to implement annual leave promotion as part of changing the grant policy to fiscal year date.
Can the annual leave carried over through the adjustment feature be excluded from the promotion target amount?
If you grant the remaining annual leave amount that needs to be paid as [Custom Leave] through the annual leave adjustment feature, it will not be counted in the promotion target amount. Additionally, you can manage it so that the existing remaining annual leave is granted as custom leave and that leave is used first. For detailed information about granting custom leave, please refer to the guide below.