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Caution

Some of the configuration/policy setup features require expertise in greytHR setup and configuration. Changes may impact the defined business rules or specific setups. Utmost care should be exercised while modifying the settings. It is strongly recommended to allow modifications by expert users only. Perform an impact analysis, consult with the experts, receive authorization from respective stakeholders and then implement the changes. If assistance is required in setup changes of a complex nature, we request you to create a support ticket.

 
What is Leave?
The term Leave refers to 'leave of absence' from work.
Functionally, it is a term used to describe a period of time that one has to be away from a primary job while maintaining the status of employee.
This term is in contrast to a regular off day or a holiday.
What is leave year ending and why is it required?

Most of us are familiar with the financial year closing of books and opening of the new financial year.
In a similar manner, most companies follow either calendar year ( Jan - Dec) or financial year (Apr - Mar) for leave accounting.

The unused balance of some leave types (E.g.: Earned Leave) is carried forwarded to the next year or may be encashed or the entire balance is lapsed depending on the leave type.
Also to close the leave year, all pending leave transactions must be cleared/completed.

Once the current leave year is closed, setup holidays for the next year and then ensure leave is granted for the new year.

Leave year ending is critical like financial year accounting as each year, leave accounting must be done.
This may involve indirect financial accounting as leave encashment may be part of the practice.

Is there anything specific to be done to complete leave year ending?

1. Clear all pending leave applications for the current year. This involves following up with managers to review pending leave applications, employees to apply for absent days (if any).
2. Setup Holidays for the new leave year

3. Grant leave(s) for the new leave year ( if automatic leave grant is not enabled)

What is automatic leave year ending?

The system performs leave year ending on a predefined date and time.
While processing it considers the set leave policy and performs computations and arrives at a balance for the next year (if carry forward is set).

Also the system will change the leave year to the next year and grant for the new year (yearly/monthly/quarterly), if the automatic grant is enabled.
Admin has to only setup holidays for the new year

How do I setup automatic leave year ending?
  1. Navigate to System Settings > Leave > Leave Options.
  2. Select the auto year end options as explained in the video below:

 

If I have disabled automatic leave year end process, is there a way to process year end manually?

Yes. Go to Leave > Overview
A banner will be enabled to handhold the leave year end process.

See the video below for more information:

 

What happen to leaves once the leave year ending is performed?
1. Previous leave year will be closed and new year will be considered
2. Carry forwardable balance will be moved to new leave year
3. Leave balance lapse, if enabled will be performed
4. Automatic encahshment, if enabled, will be performed ( payment will not be automatic)
5. Leave will be granted for the new year, if the automatic grant is enabled ( annual/monthly/quarterly)
6. Restrict employees to apply leave for the previous leave year
What is the ideal situation for a seamless leave year ending process?

1. All leave applications for the current leave year are processed and reviewed
2. Year end policy is verified and final

Is there any predefined date for automatic leave year ending process?
Yes. 31 Dec, 23.59 for Jan - Dec Leave Year and 31 Mar, 23:59 for Apr - Mar Leave Year
Can I reschedule the predefined date of year ending to another date of my choice?
Yes.
The banner prompts you to either use the preset date or schedule another day. Here, you can select another date for the year end process.
How do I setup the holiday list?
  1. Navigate to Leave > Setup > Holiday List.
  2. Click the Add Holidays button.
  3. For more information, see the video below:

 

I am using Leave module but do not have leave administration access. How do I verify ?
Request the super admin in your organization to enable access for you.
What happens if leave year ending is performed with pending leave applications?
For employees with pending leave applications, leave year ending will not happen.
As and when their leaves are reviewed, the system will perform leave year end process.
If the automatic leave year end process is not enabled, Admin has to perform this manually.
How do I clear pending leave applications before leave year end date?
This involves following up with managers to review pending leave applications, employees to apply for absent days (if any).
What are the best practices to get most of the leave applications reviewed by respective managers?

1. Send a mail to all managers for whom leave applications are pending to remind review of all such requests on or before 31 Dec or 31 Mar based on the leave year followed.
2. If using feeds, drop a post suggesting employees as well as managers to apply & review leaves on behalf of the Leave Year about to complete, on or before
2.1  31 Dec -  if the leave year followed is Jan - Dec
2.2. 31 Mar - if the leave year followed is Apr - Mar

Leave year end process is done but employees are finding no balance, why?
The leave auto-grant may not be enabled. In that case, grant leaves manually.
I would like to introduce a new leave policy, should I do so before year end? How do I do it?
Yes. It is ideal to introduce the new policy once the year end is done.
Before year end, make sure you disable leave auto-grant.
Share the new policy to the support team when you create the ticket.
As per the policy, if entire Earned Leave balance can be encashed, once the year end process is over, what should I do to make encashment happen?
There are two scenarios
  1. Leave encashment is already defined in the leave policy with the relevant payroll component for this. So, there is no need to do anything extra for encashment. At the time of leave year ending, the system will post an encashment transaction and payroll will fetch this data and process encashment as well in the concerned payroll month.
  2. You have just modified the year end policy with encashment provision. When there is a year end policy change during year end process, the system will post an encashment transaction. However, you may not have envisaged a relevant component in the payroll and hence not defined it in the payroll. So, there is a lapse in the payroll data. Create a support ticket and Greytip will assist with this.
After processing the leave year end, is it possible to update missing leave transaction of the previous year?
Yes. However, each time you post a transaction for the previous year, the system will perform the year end process again.
Is there an option to remove the access for employees to apply for leave, till the completion of year end activity?
No shortcut for this. Admin has to disable the rights manually and it is not recommended.
Ideally, employees and managers are informed to apply/review leaves on or before 31 Dec ( if Jan - Dec leave year is followed) and 31 Mar (If Apr - Mar leave year is followed).
To disallow employees to apply for previous years, go to System Settings > Leave > Leave Options and select the option "Restrict employees from applying leave for previous years".
Can I perform Grant Leave for new year process, before the leave year end process?
No. You can perform Grant Leave for New year after leave year end process only.
Wait for the system mail, confirming the leave year end process.
Also please note that if the leave auto-grant is enabled, there is no need to perform manual grant.
Before manual grant, we recommend to refer the step by step explanation of the grant process 
Does greytHR acknowledge/remind me about leave year end process and when?

Yes. In the given scenarios

  • When you select automatic process in the popup banner
  • When you select manual mode in the popup banner
  • 7 days before the date set for automatic year end
  • 7 days before the leave year end deadline when manual mode is selected (preset, 31 Jan for Jan - Dec and 30 Apr for April - Mar periods)
  • On the day of leave year end process
  • On completion of the leave year end process

You can view the video on how to perform the leave year end process from the below links:
Automatically
Manually

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