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How do I handle leave for employees with breaks in service?

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When an employee with a previous period of service is rehired, and if agreed upon by management during the rehiring process, it is important to adjust their hire date in the system to reflect their total tenure. This adjustment ensures that their leave entitlements are calculated based on their combined years of service, providing fairness to both the employee and the employer by avoiding over- or under-allocation of leave.

For example, let’s say an employee was first hired on March 1st, 2020, and they worked until July 25th, 2022, when they left the company. After some time away, they were rehired on January 10th, 2024. In this case, there is a break in service between July 25th, 2022 (their departure date) and January 10th, 2024 (their rehire date).

Steps to Calculate the Break in Service:

  1. Break in Service: Calculate the number of days between their last day of work and the date they were rehired.
    • From July 25th, 2022 to January 10th, 2024 is 533 days.
  2. Adjust the Hire Date: Add the break period (533 days) to their original hire date to get the adjusted hire date.
    • The original hire date is March 1st, 2020.
    • Adding 533 days to March 1st, 2020, results in a new adjusted hire date of August 16th, 2021.

This adjusted hire date reflects the total time the employee actually worked, excluding the break in service. By using this adjusted hire date (August 16th, 2021), the system will calculate the employee’s leave entitlements based on their combined years of service, ensuring fairness by accurately representing the time they have worked, while not giving more or less leave than they are entitled to.

This process ensures a transparent and balanced approach to leave entitlements, protecting both the company’s resources and the employee’s rightful benefits.

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