This feature allows you to check remaining annual leave before settling unused annual leave pay for current and former employees, and to deduct/adjust as needed before proceeding with settlement.
The remaining annual leave adjustment and settlement process consists of two main stages.
Adjustment Stage: Check remaining annual leave through the remaining annual leave adjustment feature for current and former employees, and record the deduction amount using the annual leave adjustment feature.
Settlement Stage: Through flex payroll settlement, compensate via salary for the amount deducted through the remaining annual leave adjustment.
For example, if 5 days of annual leave remain from the 2024 allocation,
proceed with a -5 day adjustment (deduction adjustment) through the current employee remaining annual leave adjustment feature, then compensate the deducted 5 days through payroll.
What is Current Employee Remaining Annual Leave Adjustment?
Current employees' annual leave is paid leave generated according to the Labor Standards Act. Unused annual leave remains as remaining leave, and verification and adjustment are required during settlement.
Annual Leave Accrual Criteria (Based on Hire Date)
Employees with less than 1 year of service: Up to 11 days
Employees with 1 year or more of service: 15 days or more
Usage Principle
Must be used within 1 year from the date of accrual.
If not used, unused annual leave is settled as pay.
Exceptions
If annual leave was not used due to the employer's fault, the leave claim right does not expire and may be carried over or expire. With employee consent, annual leave can be carried over. Annual leave carryover and expiration policies are handled according to the company's rules of employment or labor contract, and carried-over annual leave must be used the following year or settled as unused leave pay.
If annual leave promotion was conducted at the appropriate timing using flex's Smart Annual Leave Promotion feature, but the employee still did not use the leave and it expired, the obligation to pay unused annual leave pay is waived.
When Should I Use the Current Employee Remaining Annual Leave Adjustment Feature?
The current employee remaining annual leave adjustment feature is used before settling unused annual leave pay for the current year.
Specifically, it is used when checking remaining annual leave of current employees and making deductions/adjustments as needed before proceeding with unused annual leave pay settlement.
Check unused annual leave quantity: Confirm the number of remaining annual leave days based on the current year.
Pre-settlement deduction and adjustment: Make deductions and adjustments to remaining annual leave if necessary.
Settle remaining annual leave if no issues: If there are no issues with the adjustment results, settle unused annual leave pay based on that quantity.
What is Former Employee Remaining Annual Leave Adjustment?
When retiring, remaining annual leave can be either used or paid as allowance. The company must settle based on whichever method is more favorable to the employee. If the employee chooses to receive pay for unused annual leave, it should be paid as [Unused Annual Leave Pay].
The former employee remaining annual leave adjustment feature is used to check the remaining annual leave of departing employees and make deductions or adjustments as needed before settling unused annual leave pay.
Are There Any Precautions for Former Employee Remaining Annual Leave Adjustment?
The company must calculate annual leave settlement at retirement in a way that is favorable to the employee.
Calculation Based on Hire Date (Labor Standards Act Basis)
Annual leave is generated after 1 year or more of service based on hire date.
Calculation Based on Fiscal Year
Annual leave is generated for all employees based on the company's fiscal year (e.g., January 1).
Favorable Principle Application
Whichever of the above two methods is more favorable to the employee must be applied. However, even if the annual leave granted based on company policy exceeds that under the Labor Standards Act (hire date basis), if the rules of employment state that 'settlement will be recalculated based on the Labor Standards Act (hire date basis) upon retirement', settlement can be based on the Labor Standards Act.
For example, if Hong Gildong retires and received 45 days based on the fiscal year and 43 days based on the Labor Standards Act (hire date basis), the fiscal year basis is more favorable. However, if the rules of employment include a recalculation clause, final settlement can apply 43 days (Labor Standards Act basis) without issue.
Settling Annual Leave Pay
If you use flex payroll settlement, annual leave pay for current and former employees is automatically calculated based on the remaining annual leave adjustment.
FAQ
What is the difference between the existing annual leave adjustment feature and the remaining annual leave adjustment feature for current and former employees?
What is the difference between the existing annual leave adjustment feature and the remaining annual leave adjustment feature for current and former employees?
Existing Annual Leave Adjustment Feature
Purpose: Used when an admin needs to immediately grant or deduct an employee's annual leave
Timing: Used as needed during routine operations
Examples:
When 2 extra days of annual leave need to be granted to a new hire
When 1 day of incorrectly deducted annual leave needs to be restored
When 1 day of annual leave needs to be granted company-wide as a reward
When deducting annual leave usage history from before flex adoption without uploading usage records
→ In other words, this is a feature for simply modifying/correcting granted annual leave.
Remaining Annual Leave Adjustment Feature for Current and Former Employees
Purpose: Just before annual leave pay settlement, check remaining annual leave and deduct/adjust as needed to reflect in payroll settlement
Timing: Used at the end of the current year or before retirement annual leave settlement
Examples:
For a current employee with 15 days of annual leave in 2024, 10 days used, 5 days remaining → Record -5 day adjustment, and 5 days of unused annual leave pay is automatically calculated during payroll settlement
→ In other words, this is a feature for recording purposes related to unused annual leave pay settlement, directly linked to payroll.