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ℹ️ Important read: Get to know Planday's leave management to find out which leave set-up fits your needs.
What is prorated leave?
If an employee starts in the middle of the holiday year with a holiday account that includes a fixed number of days or hours upfront, the opening balance may need to be adjusted according to the employee's hire date. Planday automatically calculates adjustments, letting you update the opening balance as needed.
Follow these steps to adjust the opening balance for employees who begin mid-year.
Set the hire date in employees’ profiles
Go to People > Employees.
Edit the relevant employees.
Under Personal details, set the Hire date.
Create a fixed leave policy
Without the automatic creation option
Without the automatic creation option
Go to Settings > Leave & Overtime (or Absence & Overtime) > Policies > Create policy.
Create a fixed leave policy by selecting either:
Preset (predefined) (1), or
Custom (2)
If you choose to create a custom policy:
The Accruing rate should be “Do not use”.
The Opening balance should be a number other than 0.
With the automatic creation option
With the automatic creation option
Go to Settings > Leave & Overtime (or Absence & Overtime) > Policies > Create policy.
Create a fixed leave policy by selecting either:
Preset (predefined) (1), or
Custom (2)
If you choose to create a custom policy:
The Accruing rate should be “Do not use”.
The Opening balance should be a number other than 0.
Under “Who should be eligible for this leave policy?”, check both of the following options:
‘Create automatically’
‘Calculate the opening balance based on the hire date’.
If you choose to create a preset policy:
Once the policy is created, edit it and in the “Optional rules’’ section, click Edit. Then, enable both of these options:
‘Create and assign accounts automatically’
‘Calculate the opening balance based on the hire date’.
Automatic opening balance adjustment
If you’ve chosen the automatic creation for your fixed accounts and enabled the option to adjust the balance based on hire date, Planday will automatically adjust the opening balance and change the start date of the account to the employee’s hire date.
Adjust the opening balance in the leave accounts
If you haven’t selected automatic creation, once the leave accounts are set up, go to Schedule > Leave Accounts (or Absence accounts).
Then, follow these steps:
Click on “Additional filters”.
Choose the leave account’s name.
Click on the relevant accounts. They will be flagged with a warning sign.
Under “Opening balance”, click on “Adjust”. The balance (either days or hours), will then be prorated automatically based on the employee’s hire date.
In the example above, the employee's start date is 01/10/2024, while the policy's start date is 01/01. The total balance allocated upfront for the holiday policy is 400 hours. However, based on the employee's hire date, the recommended opening balance adjustment for this employee is 100.55 hours.
The calculation is as follows:
400 (total entitlement)×92 (number of days remaining in the year) / 366 (total number of days in the year) = 100.546, rounded to two decimal places: 100.55 hours.
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