Leave Encashment

Some Business would not be able to allow their staff to take their Annual leaves and would rather have a policy that the staff would be able to encash these leaves instead.

If your Business has this policy, then you would need a leave type and a pay category to ensure the smooth process of leave count being approved and paid off with employee salary.

This article will give you details on how to create a Leave Encashment Leave Type

Steps to Create a Leave Encashment Leave Type

1. 1. Go to Settings → Leave → Leave Type and click Add Leave Type.

   2. Set the Leave Category to Leave Encashment.

   3. Choose the Approval Pipeline: 

      • You can use the same pipeline as other financially impacting leave types (e.g., Unpaid Leave, Sick Leave).

      • If you wish to create a new pipeline specifically for Leave Encashment, please contact your Account Manager for guidance.

       

   4. Update the General Ledger (GL) Code as advised by your payroll team.

   5. Save the leave type

      Optional Configurations

      You can also configure additional policies, such as:

      • Requiring supporting documents

      • Setting a minimum length of service before eligibility

      • Defining maximum encashment days allowed

      
      
      

Adding the Leave Type to Leave Groups

• To ensure employees can apply for Leave Encashment, the Leave Type must be added to the relevant Leave Groups:

1. Go to Settings → Leave → Leave Group.

2. Select the leave group(s) that should include Leave Encashment and click Edit.

3. Click Add Leave Type and select Leave Encashment.

4. Save the changes.

Once configured, employees will be able to go to the Leaves section in Yomly and submit a Leave Encashment request against their available leave balance.