Create Leave Type - A summary of the activity

Through this activity, you can define the different types of leave. A leave type is a classification of leave, applicable for an organization unit for a definite period.

For the leave type, you are to also enter the specific attributes applicable to it; these leave attributes will influence the way the system will process the leave units for the employees who will avail this leave type. For example, if the leave type is Casual leave and the attribute is Holiday Inclusive - "Public Holiday", the system will include the public holidays within the leave period as leave units.

The leave attributes for a leave type are as follows:

• The unit of leave

• Whether calendar based or non-calendar based

• Whether holiday is included

• Entitlement of leave

• Posting of leave

• Encashment of leave

• Carry-over of leave, and negative balance

• Whether quick leave is applicable

• Whether supporting documents are required

The unit of leave: Each leave type may be maintained either in days or in hours.  Days and hours are called leave units. For example, you could specify that the leave type casual leave must be maintained in hours, while the leave type privilege leave must be maintained in days.

The employees leave will be calculated in the leave unit you specify, for each leave type.

Whether calendar based and non-calendar based: The type of leave that you define must be either calendar based or non-calendar based.

If the leave type is calendar based:

• It will be effective for a specific date range. For example, if the leave type privilege leave is calendar based, and the effective period of the calendar is Apr 02 to Mar 03, privilege leave will be effective for the date range Apr 02 to Mar 03. This date range will apply to all employees mapped to privilege leave, unless you specify otherwise.

• You can create a prorata rule through a stored procedure, to calculate the number of leave units to which an employee is eligible, when he or she joins in the middle of the calendar year. When the next calendar year starts, the employees eligible leave units will be regularized. Tell me more. For example, an employee joins the organization during the leave calendar CAL, which is from 01 April 2002 to 31 March 2003, in grade 'Middle Management' and level 'L2'. The employees entitlement units will be proportionately given, according to the duration of the calendar. You can also create the prorata rule to handle any other complex situation in an organization. Example.

If the leave type is non-calendar based:

• It will be effective for a specific duration such as 6 months, but  no date range will be specified. The non-calendar based leave type is said to be based on periodicity. Typically, the start date of an employees effective period will be calculated from his or her date of joining. For example, the leave type casual leave is non-calendar based, and the duration of the leave type is 1 year. If the employee joins the organization on 5 May 2003, his or her casual leave will be effective from 5 May 2003 to 4 May 2004.

 
You can decide whether the eligible leave units will be credited to the employee right at the start of the effective period or only at the end of the effective period. For example, if the periodicity is 3 months and the employees entitlement units are 3 for the leave type vacation, he or she will be eligible for vacation leave of 3 days for the period 01 Jan 2002 to 31 March 2002.
 If you specify that the employee will accrue leave at the end of the duration, he or she can avail 3 days on 31 March 2002 although eligible for the leave throughout the period 01 Jan 2002 to 31 March 2002. If you specify that the employee will accrue leave at the start of the duration, he or she can avail the 3 days on 01 Jan 2002.

• You can also specify whether the periodicity of the employees leave will be affected by him or her availing any other type of leave. If it will be affected, you are to list these specific leave types, in the Accrual Period Computation Parameters page. For instance, you can specify that the leave types loss of pay and sick leave will affect the leave type vacation.
  Using the example above, the employee avails 5 days of the leave type loss of pay from 05 January 2002 to 10 January 2002. The system will extend the periodicity of the leave type vacation from 31 March 2002 to 05 April 2002. If you had specified that the employee will accrue leave at the end of the duration, he can avail the 3 days on 05 April 2002. Tell me more.

Whether holiday is included: You can specify whether the system must treat the intervening holidays and weekly offs within the leave period as leave. For example, you specify that the holiday privilege leave is off day inclusive, and an employee applies leave from August 7 2003 until August 12 2003. The Saturday and Sunday that occur within this period will also be treated as leave days, when the system calculates the privilege leave availed by the employee.

Entitlement of leave: Entitlement of leave refers to the total number of leave units of a given leave type, allocated to employees, for either a leave calendar or a periodicity.

You are to first indicate whether the leave type can be entitled. Leaves types such as Loss of Pay are not entitled to the employee. Tell me more. If it can be entitled, you are to specify the conditions of leave entitlement in one of the three ways below:

• Indicate that the entitlement conditions are applicable for the entire set of employees in the organization. If you choose this option, the system requires you to enter the number of leave units.

• Indicate that the entitlement conditions are applicable for each grade -level combination. If you choose this option, the system requires you to enter the number of leave units for every grade -level combination. For example, you could specify that the grade 'Middle Management' and 'L2'  are entitled to 40 days of privilege leave , while the grade Junior Management' and level 'L4'  are entitled to 30 days of privilege leave.

 
Creating a stored procedure rule to determine the allocation of leave units for employees.

Posting of leave: Posting refers to the number of leave units for which an employee can apply, at a stretch, for a given leave type.

You are to specify the number of leave units that can be posted, in one of the three ways below:

• Indicate that the posting conditions are applicable for the entire set of employees in the organization. If you choose this option, the system requires you to enter the minimum and maximum number of leave units. For example, if an employee avails the leave type casual leave, a minimum of half a day and a maximum of 3 days can be availed at a stretch.

• Indicate that the posting conditions are applicable for each grade -level combination. If you choose this option, the system requires you to enter the number of leave units for every grade -level combination. For example, you could specify that the grade 'Middle Management' and level 'L2'  could avail a minimum of 1 day and a maximum of 5 days of privilege leave at a stretch.

• Creating a stored procedure rule to determine the posting of leave units for employees.

You are to specify the grace period for leave application and alteration.

Encashment of leave: Encashment refers to encashing the leave units unavailed during a calendar year or periodicity.

You are to first indicate whether the leave type is encashable. If encashable, you are to specify the conditions of leave encashment in one of the three ways below:

• Indicate that the encashment conditions are applicable for the entire set of employees in the organization. If you choose this option, the system requires you to enter the maximum number of leave units that can be encashed.

• Indicate that the encashment conditions are applicable for each grade -level combination. If you choose this option, the system requires you to enter the number of leave units that each grade -level combination can encash.

• Creating a stored procedure rule to determine the encashment of leave units for employees.

Carry over of leave: Carry over refers to the total balance of leave units of the employee during a calendar year or periodicity, which can be carried over to the next leave calendar or periodicity.

You are to first indicate whether the leave type can be carried over. If it can be carried over, you are to specify the conditions of leave carry over in one of the three ways below:

• Indicate that the carry-over conditions are applicable for the entire set of employees in the organization. If you choose this option, the system requires you to enter the maximum number of leave units that can be carried over to the next leave calendar or periodicity.

• Indicate that the carry-over conditions are applicable for each grade -level combination. If you choose this option, the system requires you to enter the maximum number of leave units that each grade -level combination can carry over to the next leave calendar or periodicity.

• Creating a stored procedure rule to determine the carry-over of leave units for employees.

You are to also indicate whether negative balance is allowed.

Maximum balance units: You are to enter the maximum number of leave units that can be accumulated for the leave type, within a leave calendar or periodicity.

Whether quick leave is applicable: Quick leave refers to the automatic authorization of a leave type, where the employees leave application for this leave type will by-pass the normal authorization process. Quick leave will be subject to the employees leave balance.

You are to specify the applicability of quick leave in one of the two ways below:

• Indicate that quick leave is not applicable for the employees in the organization

• Specify the grade -level combinations for which quick leave is applicable, by means of a stored procedure rule. Any other conditions specific to quick leave can be added as well, through the stored procedure rule.

Whether supporting documents are required: Supporting documents are documents that provide proof that the employee availed leave for the stated purpose. For example, supporting documents such as Medical Certificate are provided for medical leave.

You are to specify whether supporting documents must be provided for the leave type.

Defining eligibility values: Through this activity, you can also maintain different leave eligibility values for a specific leave type,leave scheme and for a specific period. Based on these eligibility values, eligibility process finds out the leave units that are entitled for a specific employee.

For example, you can define a leave eligibility values for a specific combination of department, job and grade. Likewise, you can define different leave eligibility values for the same leave type and leave scheme for a different combination of department, shift group, job, grade or any other parameters.

Note:  You can define the eligibility values in this activity based on the “Leave Eligibility Based On” parameter set in the “Set Parameters” activity. For example if the “Leave Eligibility Based On” parameter is set to “Divisional Status”, you can define the eligibility values only for divisional status.

You can define the leave eligibility values by entering the parameters, such as

•  The department, divisional status, grade set, grade, job and position.

•  The shift group for which you intend to define the leave eligibility values.

•  The service period of the employee for which you intend to define the leave eligibility values.

•  The number of  eligible leave units.

•  The maximum number of leave units, which can be encashed.

•  The number of leave units in each block to encash leave.

•  The number of balance leave units that can be carried over to the next year.

•  The maximum number of years of leave balance that can be carried over to next year.

Note: You can enter “*”(asterisk) in the fields; “Department”, “Grade set”, “Grade, “Position”, and “Job”; this implies that the leave eligibility value is applicable to all the departments, grade sets, grades, position and jobs if * (asterisk) is entered in the respective fields.

If you have defined a leave eligibility value for a specific grade and another set of values for all the grades. The leave eligibility values defined for the specific grade takes precedence over the eligibility values defined for all the grades.

Getting familiar with the pages inside

6      Hyperlinked topics below

Prerequisites

Grade and levels must be defined in the organization structure component.

Quick codes must be defined.

Each of these tasks is described in the following sections.

What you can do in this activity  

Create Leave Type         

Define Prorata rule

Define Accrual Period Computation Parameters

Define Entitlement Rule

Define Posting Rule

Define Carry Over Rule

Define Encashment Rule

Define Grade Level for the various attributes such as entitlement, carry over, encashment, quick leave and posting

View Leave Type

When the leave type is calendar based

If you choose the leave type to be calendar based in this activity, you are required to map the leave type to a specific leave calendar. This mapping must be carried out in the Define Leave Calendar activity, where you define a new leave calendar and also map specific leave types to the leave calendar.

Periodicity

The periodicity indicates the duration of the non-calendar based leave type. The periodicity may be in days, months or years or any other interval. The periodicity for each employee will be different for the same leave type, because the starting point of the periodicity will be his or her date of joining the organization.

You can also change the length of each successive periodicity for a leave type; the system will re-allocate the entitlement units across each periodicity. For instance, the first periodicity for the leave type casual leave can be from January 1 2003 until June 30 2003. The next periodicity for the same leave type can be from July 1 2003 until September 30 2003.

Example of prorata rule

An organization might decide to have rules such as follows: If an employee in grade 'Middle Management' and level 'L2' joins before 01 Jun 2002, the entitlement units will be 10 days, while after 01 Jun 2002 the entitlement units will be 5 days.

If no pro rata rule is specified for a calendar year

If a pro rata rule is specified, and an employee joins in the middle of the calendar period, the system will calculate his entitlement units based on the pro rata rule. If no pro rata rule is specified, the system will calculate entitlement units proportional from the date of joining. For example, the entitlement for the period January to December is 12 days, for a leave type.  When an employee joins in June, the system will calculate his entitlement units as 7 days.

Leave types that cannot be entitled

If a leave type does not allow entitlement, it must be marked as Without entitlement. For such a leave type, you are to specify only the posting conditions; in other words you can specify the number of leave units for which employees can apply, at a stretch. 

You cannot specify either encashment or carry-over for such a leave type. A leave without entitlement will automatically have the allow negative balance flag checked.

You can specify all other attributes, just as for a leave type that is with entitlement. For instance, you can decide whether it will be holiday inclusive, or whether quick leave is applicable.

The role of a leave type that affects service period

When you mark a leave type as affects service period while defining it, this leave type can affect the accrual period of other leave types. In other words, it can result in extending the periodicity of the employee, for a non-calendar based leave type.

For example, you can define the following:

• A leave type called loss of pay, and mark it as affects service period

• A leave type called vacation, which will be non-calendar based, and the leave units can be accrued only at the end of the periodicity. You are to also enter the Accrual Period Computation Parameters page, and specify that the accrual of the employees leave units will be affected by the leave type loss of pay.

For employee John, the periodicity of the leave type vacation is from 01 January 2003 until 31 March 2003. Within this period, he avails the leave type loss of pay for 5 days. Accordingly, the periodicity of the leave type vacation is extended from 31 March 2003 to 05 April 2003. Employee Johns vacation leave units will be credited only on 05 April 2003.

Negative balance

If negative balance is allowed, the system will carry the negative balance into the next calendar or periodicity. If negative balance is not allowed, the number of entitlement units for the leave type will be initialized at the start of the new leave calendar or periodicity.

For example, the leave type is privilege leave, the entitlement units are 30 days and negative balance is allowed. If the employee avails 33 days of privilege leave with the periodicity from January 1 to March 31, his entitlement units in the next periodicity will be 27 days. On the other hand, if negative balance is not allowed, his entitlement units in the next periodicity will be 30 days

Note: A leave without entitlement will always have the allow negative balance flag checked.

Grace period for leave application and alteration

You can specify the period for which a leave application can be backdated, provided there is no carry over of leave units

For example, you specify that the grace period is 3 months. If the current date is February 1 2005, you can enter leave applications from November 1 2004 and later . You cannot enter a leave application for October 31 2004.