Click [Attendance Management] -> [Leave Management] -> [Leave Balance Status] tab, then click [Adjust Leave] at the top right to check the remaining annual leave of active and resigned employees, and proceed with deduction adjustments and settlement as needed.
Required Permissions: Administrators who have been granted all [Leave]-related permissions, or who have been granted [View Leave] + [Edit Leave] + [Annual Leave Policy & Promotion Management] + [Custom Leave Management] permissions can use the remaining annual leave adjustment feature for active and resigned employee settlement.
Common
Remaining annual leave adjustment and settlement consists of two main steps.
Adjustment Step: Check the remaining annual leave and record the amount to be deducted through settlement as an annual leave adjustment
Settlement Step: Compensate the deducted amount through payroll.
For example, if 5 days of remaining annual leave are left from the 2024 grant,
First, proceed with a -5 day adjustment (deduction adjustment) from the annual leave,
Then compensate the deducted 5 days through payroll.
Remaining Annual Leave Adjustment for Active Employee Settlement
Click the [Remaining Annual Leave Adjustment for Active Employee Settlement] button.
You can determine which month's payroll to attribute it to based on the configured [Settlement Attribution Month].
The adjustment records will be automatically loaded as payment targets in the payroll settlement with the same attribution month as the [Settlement Attribution Month].
Annual leave whose last usable date falls within the configured [Usage Deadline] period is subject to settlement.
The usage deadline can be selected independently from the settlement attribution month.
An example image of active employee remaining annual leave adjustment is shown below.
In this example, the records will be loaded when processing January 2025 attributed payroll.
In this example, settlement is performed for annual/monthly leave where the last usable date falls within December 2024, by leave policy.
Monthly leave granted to employees who joined during December 2023 (usable until hire date + 1 year - 1 day)
Annual leave granted on the hire date under the hire date-based grant policy (usable until grant date + 1 year - 1 day)
Annual leave granted on January 1, 2024 under the fiscal year-based grant policy (usable until December 31, 2024)
1. Automatically Calculated Remaining Annual Leave
Remaining annual leave is calculated by automatically excluding registered usage, promotions, and existing adjustments. If unused annual leave remains, it automatically calculates the adjustment and settlement amount to bring the balance to 0. If leave was used in advance (advance usage) resulting in excess usage, it automatically carries it over to the next year without additional adjustment. You can also manually edit the amounts if desired.
2. Edit Deduction Amounts and Check Estimated Payment
Enter deduction amounts not registered in flex and check the estimated allowance payment. If for any reason there are unregistered usage, promotion, or settlement records in the system, you can simply enter the amount and leave a reason at the time of settlement.
3. View History Anytime from Records
You can review the adjustments exactly as they were made. You can also edit reasons and cancel for all or some members. If you do not subscribe to flex payroll settlement, you can download the adjustment records as Excel and use them for settlement.
4. Import Payment Amounts in Payroll Settlement
You can automatically import and settle the adjusted remaining annual leave amounts in flex payroll settlement.
Before starting payroll settlement, please set up [flex Integration] for work hours input in [Payroll Settlement] -> [Settlement Template List] -> [Select the settlement template in use] -> [Basic Settings].
After setting up and proceeding with payroll settlement, the adjusted annual leave amount will be automatically imported under 'Active Employee Annual Leave Allowance' among the variable payment items in payroll settlement.
Remaining Annual Leave Adjustment for Resigned Employee Settlement
Click [Attendance Management] -> [Leave Management] -> [Leave Balance Status] tab, then click [Adjust Leave] at the top right, and click the [Remaining Annual Leave for Resigned Employee Settlement] button.
You can perform settlement for resigned employees using the [Remaining Annual Leave Adjustment for Resigned Employee Settlement] button.
You can load resigned employees for settlement based on the configured [Resignation Date] period.
The adjustment records will be automatically loaded as payment targets in the payroll settlement that includes the resigned employee.
In the example below, the records will be loaded when processing payroll that includes employees who resigned in July 2025.
1. Comparison with the Labor Standards Act
Click [Settings] -> [Annual Leave Settings] -> [Resigned Employee Annual Leave Adjustment Standard Settings] at the bottom of the left menu
Set the adjustment standard and compare between the Labor Standards Act and company policy-based grant amounts. You can configure whether to re-settle based on the Labor Standards Act standard or settle based on the company policy grant amount when more leave was granted than the Labor Standards Act standard.
2. Check Resigned Employee's Pre-Adoption Annual Leave
You can review and edit annual leave details for members who joined before flex was adopted. If pre-adoption usage, promotion, or settlement records are not registered in flex, you can simply enter the amount and leave a reason at the time of settlement.
3. View History Anytime from Records
You can review the adjustments exactly as they were made. You can also edit reasons and cancel for all or some members. If you do not subscribe to flex payroll settlement, you can download the adjustment records as Excel and use them for settlement.
4. Import Payment Amounts in Payroll Settlement
You can automatically import and settle the adjusted remaining annual leave amounts in flex payroll settlement.
Before starting payroll settlement, please set up [flex Integration] for work hours input in [Payroll Settlement] -> [Settlement Template List] -> [Select the settlement template in use] -> [Basic Settings].
The adjusted annual leave amount will be automatically imported under [Resigned Employee Annual Leave Allowance] among the variable payment items in payroll settlement.
FAQ
Promotion records conducted separately are not registered in flex. Is it possible to settle considering this?
Promotion records conducted separately are not registered in flex. Is it possible to settle considering this?
Yes, it is possible. If there are promotions conducted outside of flex, you can directly enter the promotion target amount from the remaining balance in the 'Promotion' column value during active and resigned employee settlement.
What happens to the existing 'Unused Annual Leave Allowance' payment item?
What happens to the existing 'Unused Annual Leave Allowance' payment item?
The previously used Unused Annual Leave Allowance and various custom-named annual leave allowances added by customers will be discontinued. If needed, you can continue using them through [View Unused Items] → [Reuse Item]. We recommend using the newly updated Active Employee Annual Leave Allowance and Resigned Employee Annual Leave Allowance for their intended purposes rather than custom annual leave allowances.
I have questions about the changes. How can I inquire?
I have questions about the changes. How can I inquire?
Please click the flex logo at the bottom right within flex to leave a real-time chat message.