Part A: Steps of calculation
Step 1: The system will use the company profile's leave calculation method to determine the employee's yearly leave entitlement.
Step 2: Once the user enters the employee’s resignation date, the system will use this information to calculate the prorated leave entitlement.
| No. | Condition | Formula |
| 1. | Resign Year = Join Year | Yearly entitlement x (resign date – join date + 1) -------------------------------------------------------------- (Last day of the year – join date + 1) |
| 2. | Resign Year ≠ Join Year | Yearly entitlement x (resign date – first day of the year + 1 ---------------------------------------------------------------- Total days of the year |
Step 3: Determine whether the annual leave entitlement must be prorated monthly.
| No. | Entitlement Calculation Method | Formula |
| 1. | Yearly Leave | Final calculation refers to step 2 |
| 2. | Earn Leave: i. Resign Date = End date of the month | (Step 2 Figure) x worked months ----------------------------------------- Total months |
| Earn Leave: ii. Resign Date ≠ End date of the month | (Step 2 Figure) x (worked months – 1) ----------------------------------------------- Total months | |
| 3. | Advance Earn Leave | (Step 2 Figure) x worked months ----------------------------------------- Total months |
Step 4: Finally, check the rounding rules applied to the leave entitlement calculation.
| No. | Entitlement Calculation Method | Leave's Roundup Method | Round As Below |
| 1. | Yearly Leave | Hourly | Round up to nearest 2 decimals |
| Half Day | Decimal < 0.1 round to 0 | ||
| Decimal >= 0.1 & < 0.6 round to 0.5 | |||
| Decimal >=0.6 round to 1 | |||
| Full Day | Decimal > 0.51 round up else round down | ||
| 2. | Earn Leave / Advance Earn Leave | Hourly | Round up to nearest 2 decimals |
| Half Day | Decimal < 0.49 round to 0 | ||
| Decimal >= 0.49 & < 0.99 round to 0.5 | |||
| Decimal >=0.99 round to 1 | |||
| Full Day | Decimal <= 0.99 round to 0 | ||
| Decimal > 0.99 round to 1 |
Part B: Scenario Reference
Notes:
The employee’s leave entitlement is 12 days per year.
The company uses an earned leave concept and allows employees to apply for half-day leave.
Scenario (a):
If Employee A resigned on 31/01/2023, the calculation is as follows:
| Step | Condition | Formula | Calculation |
| 1 | Resign Year ≠ Join Year | (Yearly Entitlement × (Resignation Date − First Day of the Year +1)) | = [12 x (31 - 1 + 1)] ÷ 365 = 12 x [31 ÷ 365] = 1.019178 |
| 2 | Resign Date = End date of the month | "Step 1 Figure" × Worked Months | = (1.019178 x 1 month) ÷ 1 month) = 1.019178 days |
| 3 | Rounding Method | For earn leave with half day | = 1.019178 days ≈ 1.0 ∴ Employee A is entitled 1.0 day leave on Year 2023 |
Scenario (b):
If Employee B resigned on 01/02/2023, the calculation is as follows:
| Step | Condition | Formula | Calculation |
| 1 | Resign Year ≠ Join Year | (Yearly Entitlement × (Resignation Date − First Day of the Year +1)) ----------------------------------------------------------------------- Total Days in the Year | = [12 x (32 - 1 + 1)] ÷ 365 =1.052055 |
| 2 | Resign Year ≠ End date of the month | "Step 1 Figure" × (Worked Months−1) ------------------------------------------- Total Months | =[1.052055 × (2−1) months] ÷ 2 months = 0.526027 days |
| 3 | Rounding Method | For earn leave with half day | = 0.526027 days ≈ 0.5 ∴ Employee B is entitled 0.5 day leave on Year 2023 |
By Winnie 230410, Azirah 250814