Navigation: Leave>> Leave Setup>> Leave-Payroll Links
No Pay Leave
Unpaid leave refers to time off from work during which an employee retains their job but does not receive a salary. In some instances, an employee on no pay leave does not accrue vacation or annual leave during that period of absence.
To setup the No Pay leave:
- Create the leave type named No Pay Leave.
- Create the No Pay Leave earning code.
- Setup the Leave Payroll Link for No Pay Leave.
Create No Pay Leave Type
Create the No Pay Leave Earning Code
Note that the Earn Factor on the No Pay Leave earning code is set to 1. This works together with the factor set in the Leave Payroll link which in our example below is set to -1 which gives a net factor of -1 to be used in the calculation of days to be paid to the employee.
In this case the days are not paid, but they are in fact deducted from the employee's salary.
Setup the Leave Payroll Link for No Pay Leave for Salaried Employees
Company Code/Name: Select the name of the company using the drop-box.
Pay Group/Pay Group Name: Select the Pay Group to which the linkage is to be applied.
Leave Code/Description: Select the Leave Type Code (that you would have previously built) for which you are setting up the Payroll Link.
Payroll Code/Description: Select the Payroll Code for which you are setting up the Leave Link.
Link Description: Give the Link you are building a name.
Apply Link to Full Time/Part-Time: You can choose if this Link is applicable to All employees within the Pay Group, Full Time only employees or Part Time only employees.
Apply Link to Salaried/ Non-Salaried: You can choose if this Link is applicable to All employees within the Pay Group, only Salaried employees or only Non-Salaried employees.
Payment Rules
Units: Indicate whether the Leave Type for which the Link is being built is one that is based on hours or days
Number of Hours in a Day: Indicate how many hours make up your Company’s standard work day for the chosen Pay Group e.g. 8, 7.5, 10 etc. (Note, the default value is 8).
Limit Full Pay To: Indicate how many days of Full Pay the employee will be entitled to when on this No Pay Leave. Note that in this example, we Limit Full Pay to 0 days as no leave is paid. The number of days you should enter here should be based on your company's leave policy.
Apply 1st Factor of: Indicate the Pay Factor that you wish the application to calculate the employee’s Pay in the event that his/her Leave Taken goes over the amount of days stipulated at Full Pay. Note, that in this example that the factor is -1 and the number of days is 365. This means that for each day up to 365 days that an employee is on No Pay Leave, the number of days pay will be deducted from their salary.
Pay as Lump Sum: You can choose if the Payment is to be given as a Lump Sum or if it will be made each cycle (if the employee’s Leave straddles multiple Cycles).
Status: For the calculations to take effect the Status of the Linkages built must be set to Active.