When setting up your leave policies, future leaves and negative leaves can be enabled or disabled. It is important for us to know the difference between these two as this drastically affects the manner in which leaves are applied for and how credits are accrued over time.
When filing a leave in advance and sufficient leave credits will have already been earned at the date of that leave, these are what we call Future Leaves.
On the other hand, when filing a leave in advance but credits are not yet sufficient or are not yet earned by the time the leave happens,but will be accrued afterwards, these are called Negative Leaves.
To understand these, below are separate scenarios for future leaves and negative leaves.
Scenarios for Future Leaves against Future Credits:
Assume the following
- Accrual rate is 1 credit every 1st of the month
- Current available leave credits of employee is 2
- Today is May 30, 2017.
1. If filing of future leaves against future credits is not allowed, and an employee files a leave application dated July 3-5, 2017, it will be equivalent to 2 days leave WITH pay and 1 day WITHOUT pay.
2. But if filing of future leaves against future credits is allowed, and an employee files a leave application dated July 3-5, 2017, it will be equivalent to 3 days leave WITH pay. This is because, by that time, the employee has already earned additional 1 leave credit, totalling to 3 available leave credits.
Scenarios for Negative Leaves:
Assume the following
- Accrual rate is 1 credit every 1st of the month
- Current available leave credits of the employee are 2
- Today is June 5, 2017.
1. If negative leaves are not allowed, and an employee files a leave application dated June 21-23, 2017, it will be equivalent to 2 days leave WITH pay and 1 day WITHOUT pay. Though he will earn additional credits in the future, the employee is not allowed to use it in advance.
2. If negative leaves are allowed (up to 2 credits), and an employee files a leave application dated June 21-23, 2017, although he has only 2 available credits, it will still be equivalent to 3 days leave WITH pay. This is because the employee can use the leave credits in advance even before the date he accrues the leave credit. The system will automatically deduct credit used in advance (in this case, 1 credit) as the employee earns it.
To explain this further, below are scenarios for the different combinations of policies on future leaves and negative leaves.
Scenarios for the Different Combination of Future Leaves and Negative Leaves:
Assume the following
- Accrual rate is 1 credit every 1st of the month
- Current available leave credits of the employee are 2
- Today is June 1, 2017.
1. If both future leaves and negative leaves are not allowed, and an employee files a leave application dated June 28 - July 4, 2017, it will be equivalent to 2 days leave WITH pay and 3 days leave WITHOUT pay.
2. If the filing of future leaves is allowed but negative leaves are not allowed, and an employee files a leave application dated June 28 - July 4, 2017, it will be equivalent to 3 days leave WITH pay and 2 days leave WITHOUT pay. The 3 days paid consist of the 2 available credits and the additional 1 credit that will be earned on July 1.
3. If the filing of future leaves is not allowed but negative leaves are allowed (up to 2 credits), and an employee files a leave application dated June 28 - July 4, 2017, it will be equivalent to 4 days leave WITH pay and 1 day leave WITHOUT pay. The 4 days paid consist of the 2 available credits and the 2 negative leave credits allowed (August and September leave credits).
4. If both future leaves and negative leaves are allowed, and an employee files a leave application dated June 28 - July 4, 2017, it will be equivalent to 5 days leave WITH pay. The 5 days paid consist of the 2 available credits, the additional 1 credit that will be earned on July 1, and the 2 negative leave credits allowed.
You’ve just learned how future leaves and negative leaves work on Sprout HR.
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