Employees are entitled to a minimum of vacation leave according to Law as shown on the excerpt below. In HRplus, the vacation leave entitlements are automatically calculated based on the following setup.
The Minimum Vacation Leave Entitlement calculation is only applicable to Companies that are NOT using HRplus Time!
Step 1 - Set up Leave Types
Please ensure that the Leave Types that are to be used for the vacation leave processing MUST BE SET:
- As accumulative.
- To use anniversary date.
Benefits>>Leave>>Leave Setup>>Leave Types
Ensure that the Leave Type is linked to a Company (Benefits>>Leave>>Leave Setup>>Leave Types>>Link Leave Types to Companies)
Step 2 - Set up Leave Rules
The Vacation/Cumulative Leave Rule for the leave type that is being processed MUST be set up to use:
- Years of Service Required
- The respective Leave Entitlement value.
Benefits>>Leave>>Leave Setup>>Leave Types>>Vacation and Other Cumulative Leave Rules
Step 3 - Enter Opening Balances (optional)
Any Opening Balance that is entered MUST have:
- A balance date that is an anniversary date of the employee and must balance as at that anniversary date (Benefits>>Leave>>Leave Overrides>>Opening Balances).
- Leave Taken entries must be entered accordingly (Benefits>>Leave>>Leave Transactions>>Leave Taken).
Step 4 - Set up System Constants
System Constants enable HRplus to use the codes set up here for processing purposes. It is a one-time setup. System Constants MUST be set up for the following:
1. Company Code. 1. Company Code
2. Leave Type Code. 2. Leave Type Code
3. Leave Minimum Exceptions. 3. Leave Type Code - for Exceptions
4. Leave Minimum Lower Limit. 4. Leave Minimum Lower Limit
5. Leave Minimum Upper Limit. 5. Leave Minimum Upper Limit
System Constants MUST be entered in UPPERCASE
1. Company Code
Enter the following:
- System Code: JMLMC1
- Description: JM LEAVE MINIMUM COMPANY 1
- Value: <valid Company Code in HRplus> (set up via Personnel>>Setup>>Organisation>>Structure>>Companies)
Enter JMLMC2, JMLMC3 for multiple companies.
System Configurations>>System Codes
2. Leave Type Code
Enter the following:
- System Code: JMLMLC1
- Description: JM LEAVE MINIMUM LEAVE CODE 1
- Value: <valid Leave Type Code in HRplus> Step 1 - Set up Leave Types
Enter JMLMLC2, JMLMLC3 for additional leave codes.
System Configurations>>System Codes
3. Leave Type Code - for Exceptions
Enter the following for Leave Types that are to be EXCLUDED from the counting of work days for employees:
- System Code: JMLMEXC1
- Description: JM LEAVE MINIMUM EXCEPTIONS 1
- Value: <valid Leave Type Code in HRplus> Step 1 - Set up Leave Types
Enter JMLMEXC2, JMLMEXC3 for additional EXCEPTION leave codes.
System Configurations>>System Codes
4. Leave Minimum Lower Limit
Enter the following:
- System Code: JMLMLLIM
- Description: JM LEAVE MINIMUM LOWER LIMIT
- Value: 110
This is the lower limit of days that the employee must work, for the anniversary year, in order to be entitled to vacation leave. It is currently set at 110 days.
System Configurations>>System Codes
5. Leave Minimum Upper Limit
Enter the following:
- System Code: JMLMULIM
- Description: JM LEAVE MINIMUM UPPER LIMIT
- Value: 220
This is the maximum number of days that the employee must work, for the anniversary year, in order to be entitled to the full entitlement of vacation leave. It is currently set at 220 days.
System Configurations>>System Codes
How the Leave Processing works
The processing applies to ALL:
- Employees in the Company entered in System Constants.1. Company Code
- Leave Codes entered in System Constants.2. Leave Type Code
Work Days
1. are calculated as all week days (Monday to Friday) for the employee from his/her anniversary date to the date until the leave is being calculated in the leave (anniversary) year.
2. used in the assignment of the entitlement are the work days calculated in 1 above less the number of omitted days calculated in 3 below.
Omitted Days
3. are calculated as all week days (Monday to Friday) under Leave Type Codes entered in System Constants 3. Leave Type Code - for Exceptions from the date taken to the last day of leave in the anniversary year for the employee.
Leave Entitlements are assigned as follows:
- NO LEAVE ENTITLEMENT: for employees with work days (calculated in 2 above) that are less than or equal to the minimum number of days (110). 4. Leave Minimum Lower Limit
- NUMBER OF DAYS (calculated in 2 above) DIVIDED BY 22 (rounded to the NEXT WHOLE DAY): for employees with work days (calculated in 2 above) that is greater than the minimum number of days (110) and that is less than or equal to the maximum number of days (220) 5. Leave Minimum Upper Limit )
- FULL LEAVE ENTITLEMENT (based on Leave Entitlement Rules) Step 2 - Set up Leave Rules For employees with work days (calculated in 2 above) that is greater than the maximum number of days (220) 5. Leave Minimum Upper Limit 4. Leave Minimum Lower Limit
In summary:
- 0 to <= 110 work days = 0.0 days
- 111 to 220 work days = work days / 22.0 days (rounded to the next higher whole day)
- > 220 work days = full leave entitlement based on leave entitlement rules