This guide will assist you in setting up the various types of leave in your company by providing a checklist of items required for the creation of the leave.
Checklist of items / information required when it comes to setting up leave types in a company:
i) Code
- A code used to identify the type of the leave. Usually in a form of short form, example; code for 'Annual Leave' will be 'AL' or 'ANL', code for 'Medical Leave' will be 'MC'.
ii) Description
- A description is the full description of the leave type, usually used to describe the leave. Example; Description for 'AL' will be 'Annual Leave', description of 'MC' will be 'Medical Leave'.
iii) Limits
- An indicator used to determine whether the leave is allowed to be taken beyond it's balance or if the leave is only limited to it's balance. There will usually be three options:
a) Unlimited
- Leave can be applied indefinitely and the balance will NOT be affected in anyway.
b) Limited with Advance
- Leave CAN be applied in an advance manner where the balance could fall below 0 and become negative.
c) Limited without Advance
- Leave CANNOT be applied beyond it's balance, meaning once the balance hits 0, the employee will not be allowed .
iv) Entitlement Calculation Method
- An indicator used to define the calculation of the leave entitlement. There are 6 types of leave entitlement calculation method:
a) Yearly Leave by Calendar Year
- Leave entitlement will be calculated based on the employee's join year and be given in a lump sum.
b) Yearly Leave by Employee's Join / Confirm Date
- Leave entitlement will be calculated based on employee's join / confirm date and be given in a lump sum.
c) Advance Earn Leave by Calendar Year
- Leave entitlement will be calculated based on employee's join year and be given in a monthly basis, Example : January Entitlement will be given on the month of January.
d) Advance Earn Leave by Employee's Join / Confirm Date
- Leave entitlement will be calculated based on employee's join / confirm date and be given in a monthly basis. Example : January Entitlement will be given on the month of January.
e) Earn Leave by Calendar Year
- Leave entitlement will be calculated based on employee's join year and be given in 1 month later basis, similar like salary concept. Example : January's Entitlement will be given on the month of February, February's entitlement will be given on the month of March.
f) Earn Leave by Employee's Join / Confirm Date
- Leave entitlement will be calculated based on employee's join / confirm date and be given in 1 month later basis, similar like salary concept. Example : January's Entitlement will be given on the month of February, February's entitlement will be given on the month of March.
v) Parent Leave Type (if applicable)
- A function used to link one leave's application with another, example; Medical Leave parent's leave type is Hospitalization Leave. Upon applying for Medical Leave, the leave balance for Hospitalization Leave would also be affected as well. Meaning if employee applies for 5 days of MC, and upon approval, 5 days of MC and Hospitalization leave would be deducted from their balance.
vi) Gender (if applicable)
- A function used to determine which gender is allowed to apply for this specific type of leave. Example : Gender for Maternity Leave would be Female.
vii) Advance Notice Days
- A type of restriction for the specific type of leave where it would require the employees to apply leave in advance.
viii) Is Unpaid?
- To determine whether that specific type of leave is an unpaid leave.
ix) Attachment is Required for Leave Application
- To determine whether an attachment is required during the leave application process, commonly used for leave like Medical Leave, Hospitalization Leave, and such.
x) Include Public Holiday and Rest Days
- To determine whether leave applications on Public Holiday(s) and Rest Day(s) are allowed. Commonly used for Maternity Leave, Paternity Leave & Hospitalization Leave
xi) Disable Prorate
- To determine whether the leave balance will be prorated upon resignation, commonly used for leave types like Medical Leave, Hospitalization Leave, Maternity Leave and such.
xii) Leave Require Replacement
- This function will require employee to select a replacement for them upon leave application. The selected employee will not be allowed to applied for any leave or such during this period of time as he / she is the replacement for the leave applicant.
END OF GUIDE