Before Policy Change (Annual Leave Granted on Fiscal Date)
When [Settings] → [Annual Leave Settings] → [Annual Leave Grant Settings] is configured as shown in the image — granting annual leave for the period worked up to the first fiscal date (example)
Members received annual leave and monthly leave according to their respective hire dates, and the remaining balances at the end of December were as follows.
Before Policy Change | Hire Date | '23 Granted | '23 Used | '23 Expired | '23 Adjusted | Remaining Balance at End of Dec '23 |
Member A | Jan 3, '22 | 15 annual leave days | 12.5 | 1 unused monthly leave expired | 0 | 2.5 days |
Member B | Aug 28, '23 | 4 monthly leave days | 2 | 0 | 0 | 2 days |
Member C | Oct 13, '22 | 9 monthly leave days + 3.5 annual leave days | 8.5 | 2.5 unused monthly leave expired | 0 | 2.5 days |
Member D | Mar 17, '23 | 2 monthly leave days + 12 annual leave days | 14 days | 0 | 0 | 0 days |
Member E | Feb 1, '20 | 15 days | 15.344 days | 9.375 → Unused annual leave from '22 expired | -0.565 | -1 day |
After Policy Change (Annual Leave Granted on Hire Date)
When the policy is changed as shown in the image in [Settings] → [Leave Settings] → [Annual Leave Grant Settings] — granting monthly leave and annual leave to members according to their hire date (example)
As soon as the policy is changed, the remaining balances for members will change. In particular, you can see that the remaining balances for Members C and D, who joined mid-year in '22, have changed significantly.
After Policy Change | Hire Date | '23 Granted | '23 Used | '23 Expired | '23 Adjusted | Remaining Balance After Change |
Member A | Jan 3, '22 | 15 annual leave days | 12.5 | 1 unused monthly leave expired | 0 | 2.5 days |
Member B | Aug 28, '23 | 4 monthly leave days | 2 | 0 | 0 | 2 days |
Member C | Oct 13, '22 | Total 24 days: 9 monthly leave + 15 annual leave | 8.5 | 2.5 unused monthly leave expired | 0 | 14 days |
Member D | Mar 17, '23 | Total 17 days: 2 monthly leave + 15 annual leave | 14 | 0 | 0 | 3 days |
Member E | Feb 1, '20 | 16 annual leave days | 15.344 days | 5.75 days → Unused annual leave from '22 expired | 0.656 | 3.625 days |
By downloading and comparing the [Leave History] report before and after the policy change, you can more clearly see that the number of days granted and remaining days have changed for each member.
You can confirm that the number of days used and adjusted days have not changed for each member.
For Member B, who only received monthly leave as a mid-year joiner, and Member A, who has no carried-over monthly leave and only received annual leave, the granted, used, expired, adjusted, and remaining days are all the same.
Things to Check After Policy Change
When the annual leave grant policy is changed from fiscal date to hire date, each member must use the remaining balance shown after the policy change until their hire date in '24.
If the conditions (balance) after the policy change are not disadvantageous to the member, no separate adjustment is needed. However, if the leave balance is negative (-) or 0 days until the next hire date as a result of changing to the hire date grant policy, an [Adjustment] must be made to correct the member's annual leave balance.
FAQ
When changing the annual leave grant policy, do employment regulations need to be updated as well?
When changing the annual leave grant policy, do employment regulations need to be updated as well?
When changing the grant policy from hire date to fiscal date, it is recommended to add the following clause to the employment regulations: 'The base date for calculating annual paid leave is managed on a fiscal year basis (1/1-12/31) for administrative convenience and efficiency. 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 conduct annual leave promotion after changing the policy to fiscal date.
Will the annual leave carried over through the adjustment feature also be included in the annual leave promotion target count as of July 1st of '24?
We plan to conduct annual leave promotion after changing the policy to fiscal date.
Will the annual leave carried over through the adjustment feature also be included in the annual leave promotion target count as of July 1st of '24?
Yes, it will be included and the annual leave promotion will proceed. When adjusting annual leave with an adjustment effective date of January 1st, '24 and granting 3 additional days, flex will recognize the total annual leave granted to that member in '24 as 18 days. If the member has used a total of 8 days of annual leave at the time of the promotion, the promotion will proceed for the remaining 10 days.
We plan to conduct annual leave promotion after changing the policy to fiscal date.
Is it possible to exclude the annual leave carried over through the adjustment feature from the promotion target count?
We plan to conduct annual leave promotion after changing the policy to fiscal date.
Is it possible to exclude the annual leave carried over through the adjustment feature from the promotion target count?
If you grant the remaining annual leave amount that needs to be paid through the annual leave adjustment feature as [Custom Leave], it will not be counted as part of the promotion target. Additionally, by granting existing remaining annual leave as custom leave, you can manage it so that this leave is used first. For more details on granting custom leave, please refer to the guide below.