Icehrm has tools to implement complex leave policies. So most of the companies are covered by it. For example, due to government regulations of some European countries, the leave policies of companies have become a bit too complicated, but still, IceHrm can handle those. This section describes the process of implementing an advanced leave policy that involves multiple leave groups and rules in multiple countries.
Let’s think of a company operating in Germany and Singapore.
In IceHrm each Leave day is attached to a Leave Period. So It’s important to configure the Leave Periods. Leave Periods are displayed under Manage -> Leave -> Leave Periods.
If your company has not been using Icehrm before, it is recommended to delete all previous leave periods and keep only the current leave period.
After setting up leave types you can manually add all details about carried forward leave days and already taken leave days using Paid Time off tab under Leave Settings.
Singapore company has three leave types.
Every employee gets 14 days off per year. The remaining leave days can be carried forward indefinitely. For example, if you were an employee since 2020 and took 10, 13 annual leave days respectively in 2020 and 2021, by 2022 you will have 19 annual leave days. 14 from 2022 and 5 days from previous years.
Creating Leave Type for Annual Leave
Each employee gets 7 days per year. Can not be carried forward.
Creating Leave Type for Casual Leave
A working mother can take this leave 4 weeks before the expected date of childbirth. Up to 48 leave days can be taken.
Creating Leave Type for Maternity Leave
For testing, we have added 5 employees.
As you can see some employees are based in Singapore and some are based in Germany.
For testing the leave balance of each of them you can use the Employee Leave Entitlement report. Go to Admin Reports -> Reports to generate it.
Here all the employees are entitled to have all the leave types. Also, the leave numbers are as expected.
As you can see there is a problem with the above leave entitlement report. The leave types we have defined are entitled to all the employees, even the ones based in Germany.
In order to, correct the problem, you need to use leave groups. Leave groups are a way to allow only certain employees the ability to apply for certain types of leave.
Define a Leave Group for Singapore under Manage -> Leave -> Leave Groups -> Edit Leave Groups.
Then add all the employees in Singapore to this leave group by going to Manage -> Leave -> Leave groups -> Leave Group Employees.
As the next step set Leave Group of the Annual Leave to Singapore.
Repeat this for the other two Leave Types as well.
Now generate the Employee Leave Entitlement report again. Now you will see that only Singapore based employees are entitled to the Leave Types we just created.
We still have a problem with the above leave entitlement for Singapore. Only working mothers should be allowed to apply for Maternity Leave. This can be achieved by adding a new Leave Group.
Now generate the Employee Leave Entitlement report again. Now you will see that Nicole Smith is entitled to Maternity Leave. This is because Maternity Leave is under Leave Group Singapore Working Mothers and only Nicole Smith is in that Leave Group.
The German company has three leave types.
● Every employee gets 25 days off per year. The remaining leave days can be carried forward for three months.● If the employee has been working for more than 2 years. They get 1 additional vacation day.● If the employee has been working for more than 3 years. They get another 1 additional vacation day.● If the employee has been working for more than 4 years. They get another 2 additional vacation days.● For an example of your 5th year in the company, you get 29 vacation days.
● Create a Leave Group for Germany
● Add all other employees to this Leave Group
● Create a Leave Type named Vacation. Set leave carried forward to YES and allow carry forward to 3 months. Also, make sure to set the Leave Group to Germany
Employees are entitled to Sick Leave given without a limitation. We will set a limit of 14 days per year for Sick Leave but allow employees to apply it without a restriction by setting Employees can apply beyond the current leave balance to Yes.
Now generate the Employee Leave Entitlement report again. Only employees in Germany should be entitled to Vacation and Sick Leave.
But still, we have a problem with Vacation Leave. How to apply different amounts of leave to employees based on years of experience.
This can be implemented using Leave Rules.
Leave rules are a way to alter Leave Types for individual or specific groups of employees. For example, you can increase the number of leave days only for employees having permanent work contracts by adding a Leave Rule.
Now generate the Employee Leave Entitlement report again.
Even though you just configured your company leave policy in IceHrm, your employees might have been applying for leaves even before. Assume you migrated to IceHrm in March 2022. In this case, you can use the Paid time off tab to add already taken leave details for employees. For example, assume Jason Wood has already taken 5 Vacation Days off. And Johanna Fischer still has 6 Vacation days carried forward from the previous year. In order to implement this, you can add a negative paid time off for Jason Wood positive paid time off for Johanna Fischer.
3. Add 6 Vacation days for Johanna Fischer
As you can see Jason Wood’s Vacation days are reduced from 30 to 25 and Johanna Fischer’s Vacation days are increased from 27 to 33.
Assume Johanna Fischer worked 2 additional Saturdays to get your urgent project released. So you can compensate her with two additional Vacation days using Paid time off.
Currently, both offices only work from Monday to Friday. Let’s say you want to make Singapore employees work half a day on Saturday also.
Note that this will be applied to employees having Country set to Singapore on their profile.
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