As per the leave policy, our company allows the employees to encash their Earned Leaves. How can I process the encashment if leave year end process is completed?

Earned leave, also known as annual leave or vacation leave, refers to a type of leave granted to employees based on the duration of their service with an employer. It is a form of paid time off that allows employees to take a break from work for personal reasons, such as relaxation, travel, or other personal commitments. 

There are two possible scenarios which can occur: 

1. Leave encashment is already defined in the leave policy with the relevant payroll component. In this scenario, as an admin, you are not required to take any action as leave encashment is automatically processed. At the time of leave year end, the system will post an encashment transaction wherein payroll will fetch this data, and process encashment in the concerned payroll month.
2. As an admin, you have just modified the leave year end policy with encashment provision. When there is a leave year end policy change during year-end process, the system will post an encashment transaction. However, you may not have envisaged a relevant component in the payroll and hence not defined it in the payroll. So, there is a lapse in the payroll data. We recommend you contact our support team to assist you further.

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Related Links:

Video:

• To watch the automatic Leave year end process, click here.
• To watch the manual Leave year end process, click here.

Documentation:

• To read more about automatic Leave year end, click here.
• To read more about manual Leave year end, click here.

Product Update - To read our product update, click here.