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Employees can be awarded additional amounts of leave based on the number of years’ service they have completed. This calculator shows how this can be calculated.
It is typical for an organisation to award leave entitlement based on a fixed leave year. Additional leave increments are then calculated at the start of the year based on the employee’s length of service at that time. An alternative method is to pro rata the incremental leave within the leave year based on their anniversary date.
If the increment is awarded on the anniversary of their joining date, it will likely be a fractional amount of a day. This reflects the proportional amount of the increment based on the amount of the leave year remaining. The full increment is then awarded at the start of the next leave year.
In some cases, an organisation chooses to award the additional leave as a complete amount in the leave year that an employees anniversary occurs. This can be achieved in the calculator below by reducing the required years of service. An alternative is to award the whole day on the anniversary date. In most human resource management systems this can be done through a manual adjustment to the employee’s allowance. A side effect of this strategy is that the employee may not book use this portion of their entitlement at the start of the leave year.
Incremental leave and leave entitlement can be awarded based on an employee’s full-time equivalence (FTE). As the award may be fractional it may be necessary to manage such increments manually in order that the award is sufficient to meet minimum absence booking length.
All leave allowance must be reconciled when an employee leaves and this includes reconciliation of the employee’s length of service on their leaving date.
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