Future Leave Management: Configurations and Guidelines - Leave 2.0

Note: You can access the detailed release notes for the December 2024 update here. These notes include comprehensive information on Future Leave, Rollover Expiry, and enhancements to the Negative Balance Limit.

Objective

To enable businesses to manage future leave bookings effectively by combining rollover and negative balance thresholds, allowing employees to utilize a calculated future leave balance based on:

1. The maximum allowable rollover balance derived from the current year’s leave.
2. An additional balance provided through the defined negative balance threshold.

This ensures flexibility in future leave planning while maintaining adherence to the business’s leave policies.

Key Change Requirements

1. Introduction of New Leave Settings for Future Years
   • A new setting, “Allow Future Leave Requests”, has been introduced. This checkbox enables businesses to permit leave requests for future years, regardless of whether the leave type follows a calendar year or an anniversary year structure.
     
     
     
     
   • Multiple logics are applied when booking future leave. These are explained in detail below:
     • 1. Based on annual allocation - Future leave requests are allowed based on the annual leave allocation for the next year.
       2. Based on rollover threshold - Leave requests consider any rollover balance from the current year as part of the available future leave.
       3. Based on negative balance threshold - Requests can be made up to a defined negative balance threshold, allowing for future leaves to be booked in advance.
       4. Combination of rollover and negative balance threshold - Both rollover balances and the negative balance threshold are combined to calculate the total future leave eligibility.

1. 1.  Note: In all the use cases mentioned above, the future year’s balance will be recalculated to account for any negative balances consumed.

Based on annual allocation

If a business provides an annual leave allocation for future years and enables the “Allow Future Leave Requests” setting, employees can book future leave based on that allocation. This will be applicable even if the businesses add any special allocations for next year.

Example:

• Annual Allocation - 25 Days

• Leave Settings – “Allow Future Leave Requests” ~ Enabled

• Rollover ~ Disabled

• Negative Balance ~ Disabled

Outcome: In this scenario, the employee will be able to book future leave up to the annual allocation of 25 days.

Based on rollover threshold

If a business has rollover settings enabled with a defined threshold and allows future year bookings, employees can book future leave based on the maximum allowable rollover balance obtained from their current leave balance.

Example 1:

• Annual Allocation - Not allocated, as the business waits until the next year to allocate

• Current Balance - 10 Days

• Leave Settings - “Allow Future Leave Requests” ~ Enabled

• Rollover ~ Enabled with 5 Days of threshold balance.

• Negative Balance (Paid/Unpaid) ~ Disabled

Outcome 1: The employee can book 5 days of leave for the future year, based on the rollover threshold. This 5-day rollover value will be deducted from the current balance, leaving the employee with 5 days remaining for the current year.

Example 2:

• Annual Allocation - Not allocated, as the business waits until the next year to allocate

• Current Balance - 2 Days

• Leave Settings - “Allow Future Leave Requests” ~ Enabled

• Rollover ~ Enabled with 5 Days of threshold balance.

• Negative Balance (Paid/Unpaid) ~ Disabled

Outcome 2: The employee can book 2 days of leave for the future year, as this is the maximum available from the current balance. This value will be deducted, leaving the employee with 0 days for the current year.

Additional Note:

If an employee utilizes their entire rollover balance for future year bookings and has no remaining current balance, they will not be able to book any further leave for the current year.

Based on negative balance threshold

If a business enables negative balance settings with a specified threshold and allows future year bookings, employees can book future leave based on the total negative balance threshold set.

Example 1:

• Annual Allocation - Not allocated, as the business waits until the next year to allocate

• Current Balance - 10 Days

• Leave Settings - “Allow Future Leave Requests” ~ Enabled

• Rollover ~ Disabled

• Negative Balance (Paid/Unpaid) ~ Enabled, with a 10-day threshold

Output: The employee can book 10 days of leave for the future year, based on the negative balance threshold. In the following year, the employee’s balance will start as -10 days, which will be adjusted when the annual allocation is applied.

For instance, if the annual allocation for the next year is 25 days, the balance will be adjusted to 15 days by deducting the 10 days of future leave already booked.

Combination of Rollover & Negative Balance threshold

If a business enables both Rollover and Negative Balance settings with defined thresholds and allows future leave bookings, employees can book future leave based on a combination of the maximum rollover value and additional balance from the negative threshold.

Example 1:

• Annual Allocation - Not allocated, as the business waits until the next year to allocate

• Current Balance - 10 Days

• Leave Settings - “Allow Future Leave Requests” ~ Enabled

• Rollover ~ Enabled with 5 Days of threshold balance.

• Negative Balance (Paid/Unpaid) ~ Enabled, with a 10-day threshold balance

Outcome:

The employee can book a total of 15 days for future leave, comprising:

• 5 days from the rollover balance

• 10 days from the negative balance threshold

Additional Note:

If the current balance is less than the rollover threshold, only the maximum available balance (up to the rollover limit) will be considered for the future year. The negative balance threshold will then be added to this value.

Conclusion

The introduction of future leave settings provides businesses with flexible and customizable options to manage leave requests for upcoming years. By leveraging combinations of annual allocations, rollover thresholds, and negative balance thresholds, organizations can streamline leave planning while ensuring policy compliance. These settings empower employees with greater clarity and access to their leave entitlements, fostering a balanced and efficient leave management process.

This documentation serves as a guide to understanding and configuring the settings, enabling businesses to optimize their leave management system for future planning.