Leave Accrual
This guide will walk you through setting up leave accrual for employees who:
Have a set leave entitlement, which accrues throughout the year
Accrue leave entitlement based on the hours they have worked (only available for employee's with hourly leave entitlement).
If your employees have a set leave entitlement, you may not want them to have access to their full entitlement right away. In this case, you can tick 'Accrues Leave?' in the Leave tab of their profile. They will then accrue leave at a rate of 1/12th their entitlement each month (this can be applied for both daily and hourly leave allowances). Employees who accrue leave will need a 'Join date' set in the HR information tab of their profile.
By default, employees will only accrue leave during the first leave year they are employed with you. If you'd always like them to accrue leave monthly, even in subsequent leave years, you can turn off 'Accrue Only in First Employment Leave Year' in Account > Settings.
For employees who work irregular hours, you can set their leave entitlement to accrue as a percentage of their hours worked. Hours worked is any hours they have worked (regular + overtime hours excluding leave hours). This is only available for employee's who have been set to receive an hourly leave entitlement (you will need to convert leave from daily to hourly entitlement first).
Tick 'Accrues Leave?' and then tick 'Accrues Based on Percentage of Time Worked?'. The default percentage is 12.07%, but this can be amended to reflect your businesses' own policy or the employee's contract. Employees who accrue leave will need a 'Join date' set in the HR information tab of their profile.
Under Account > Settings, you can also set additional rules for leave accrual, that you can configure to suit your business.
To allow employees to book leave for more that they have accrued, tick 'Allow Negative Leave for Accrual Employees'. The default is employees can only request leave that they have accrued.
The Working Time Regulations advocates that an accrual system should be used in the first leave year for an employee. The default in TimeKeeper is to only accrue leave for the first leave year for that employee, then from leave year 2 onwards, they have access to their full entitlement.
If you want employees to always accrue leave even in subsequent leave years, tick 'Accrue Only in First Employment Leave Year' off.
To round leave entitlement up to the nearest half day, tick 'Round Accrued Days to Nearest Half Day'. Entitlement which is less than a half day will be rounded up to a half day. If entitlement is between a half day and full day, it will be rounded up to a full day.
TimeKeeper uses the advice of the Working Time Regulations 1998 here for it's defaults.
Have a set leave entitlement, which accrues throughout the year
Accrue leave entitlement based on the hours they have worked (only available for employee's with hourly leave entitlement).
How to set up monthly leave accrual
If your employees have a set leave entitlement, you may not want them to have access to their full entitlement right away. In this case, you can tick 'Accrues Leave?' in the Leave tab of their profile. They will then accrue leave at a rate of 1/12th their entitlement each month (this can be applied for both daily and hourly leave allowances). Employees who accrue leave will need a 'Join date' set in the HR information tab of their profile.
By default, employees will only accrue leave during the first leave year they are employed with you. If you'd always like them to accrue leave monthly, even in subsequent leave years, you can turn off 'Accrue Only in First Employment Leave Year' in Account > Settings.
How to set up accrual based on time worked
For employees who work irregular hours, you can set their leave entitlement to accrue as a percentage of their hours worked. Hours worked is any hours they have worked (regular + overtime hours excluding leave hours). This is only available for employee's who have been set to receive an hourly leave entitlement (you will need to convert leave from daily to hourly entitlement first).
Tick 'Accrues Leave?' and then tick 'Accrues Based on Percentage of Time Worked?'. The default percentage is 12.07%, but this can be amended to reflect your businesses' own policy or the employee's contract. Employees who accrue leave will need a 'Join date' set in the HR information tab of their profile.
Leave Accrual Scenarios
Under Account > Settings, you can also set additional rules for leave accrual, that you can configure to suit your business.
Scenario: I want my employees to be able to book more leave than they have accrued
To allow employees to book leave for more that they have accrued, tick 'Allow Negative Leave for Accrual Employees'. The default is employees can only request leave that they have accrued.
Scenario: I want my employees to accrue leave only on the first year
The Working Time Regulations advocates that an accrual system should be used in the first leave year for an employee. The default in TimeKeeper is to only accrue leave for the first leave year for that employee, then from leave year 2 onwards, they have access to their full entitlement.
Scenario: I want my employees to accrue leave every year
If you want employees to always accrue leave even in subsequent leave years, tick 'Accrue Only in First Employment Leave Year' off.
Scenario: Round to Nearest Half Day
To round leave entitlement up to the nearest half day, tick 'Round Accrued Days to Nearest Half Day'. Entitlement which is less than a half day will be rounded up to a half day. If entitlement is between a half day and full day, it will be rounded up to a full day.
TimeKeeper uses the advice of the Working Time Regulations 1998 here for it's defaults.
Updated on: 03/12/2023
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