This feature will allow you to set the encashment for the unused leave in the incomplete month if the employee is resigned in the middle of the month.
1. Go to Settings
2. Go to Leave
3. Select 'Leave Policy'
4. Select the leave policy you would like to set and click on 'Edit Button'
After the Leave Policy settings window is open, scroll down the page and you will find the 'Convert Leave on Incomplete Month'
5. Set the Priority of Encashment
By default this will set as 'Forfeit' meaning the unused balance will remain the same (no deduction) in Leave Balance Report. If you want to set it as 'Encashment' you need to click on the 'Encashment' option.
6. Set the Encash Balance Amount
Set leave balance that you want to encash for resigned employee & set adhoc Exemption Policy. For example, if the encashment is set for Annual Leave is 5 days, hence :
- if unused balance when resign is 2 days, in edit archived employee will appear 2 days not 5 days
- if unused balance when resign is 9 days, in edit archived employee will appear 5 days but user can edit it to encash balance until max 9 days.
7. Convert Encashment from Archived Employee
To convert the unused leave balance encashmennt, you may first Edit the Archived Employee.
8. Enter the Balance Amount
To convert the unused leave balance encashment, you may first Edit the Archived Employee. After that you can enter the amount of unused leave balance you would like to encash.
9. Choose the Exemption Policy
The amount of the leave encashment will appear in the selected Adhoc Exemption Policy. This will appear in the Payment Exemption table and Employee's payslip.
Click 'Save Changes' once done.
The Employee's Payslip
The amount of encashment in the system will calculate based on the following formula:
Basic Salary X 12 / (52 X weekly working days) X total leave day to encash
