Unpaid Vacation Breakdown

We're excited to announce that we have made improvements to our Unpaid Vacations feature and have introduced a comprehensive breakdown of unpaid vacations. 

With this update, you can now access detailed information about the unpaid vacation breakdown, including the months of unpaid vacation, the number of unpaid days in each month, and the calculation base for each month. This new update allows you to manage, track, and edit your employees' unpaid vacations with ease. 

This breakdown of unpaid vacation calculations has been added to the Manage Time Off page. Once an unpaid vacation request is approved or added by HR, its breakdown will be automatically generated.

TABLE OF CONTENTS

• Unpaid Vacation Breakdown
  • How to Add an Unpaid Vacation to an Employee
  • How to Edit The Unpaid Vacation Breakdown
  • Unpaid Vacations and Cut-Off Dates
    • Unpaid Vacations Added Before the Cut-Off Date
    • Unpaid Vacations Added After the Cut-Off Date
  • Breakdown of Unpaid Vacations Based on Cut-off Date:
    • How to Activate the New Option
    • Breakdown Of Unapid Vacation Examples

How to Add an Unpaid Vacation to an Employee

To add an unpaid vacation for a specific employee, please follow these steps:

• Go to Main Menu →Time Management → Leaves & Vacations → Manage Time Offs 

• Then click on the “+Add Transaction” button.

• Within the slider on the right side of the screen, find and select the name of the Employee to whom you want to add the unpaid vacation.

• Choose the relevant Time off type for the unpaid vacation from the drop-down list.

• Enter the Dates of the vacation.

• If necessary, include any relevant Notes or Attachments related to the vacation.

• Finally, click on the "Add" button to add the unpaid vacation for the selected employee.

Note: Unpaid vacations requested through the employee side will need to be

approved first before their breakdown can be viewed.

How to View The Unpaid Vacation Breakdown

Main Menu → Time Management → Leaves & Vacations → Manage Time Offs

After successfully adding the unpaid vacation for the employee on the Manage Time Offs page, click on "Edit" under the Actions column of the desired unpaid vacation record.

The breakdown of the unpaid vacation will be displayed in the Breakdown section, providing detailed information about the vacation. It will include the Months of the unpaid vacation, the number of unpaid days in each month (No. of Days), and the unpaid Calculation Base for each month.

How to Edit The Unpaid Vacation Breakdown

If a case occurs where you would like to edit the breakdown of unpaid vacations, you can easily do so by clicking on the “Edit” button in the Breakdown section:

You can then proceed to modify the number of days to be deducted from each month. Please note that the sum of these days must not surpass the Total number of days for the unpaid vacation. When calculating the salary for each month, the breakdown will reflect the number of days deducted from the total salary for each month.

Note: The number of unpaid days for months in which the salary has already been calculated cannot be edited.

Unpaid Vacations and Cut-Off Dates

Unpaid Vacations Added Before the Cut-Off Date

This section pertains to unpaid vacations that are added before the cut-off date for a specific month. In such cases, the unpaid days will be included in the salary month without any complications.

Example:

Cut-Off Date: 25 (25th of June)

Vacation Dates: June 16, 2023, to July 15, 2023

In this scenario, the first 15 days of the vacation will be deducted from the salary for June since they were added before the cut-off date. The remaining 15 days (in July) will be deducted from the salary for July.

Unpaid Vacations Added After the Cut-Off Date

This section applies to unpaid vacations that are added after the cut-off date for a specific month. In such cases, the unpaid days occurring after the cut-off date of the initial month of the vacation will be carried over and deducted at the end of the vacation period.

Example:

Cut-Off Date: 15 (15th of June)

Vacation Dates: June 16, 2023, to July 15, 2023 

In this scenario, the first 15 days of the vacation fall after the cut-off date for June's salary. Therefore, they will not be deducted from the salary for June and will instead be carried over to be deducted from July's salary.

Breakdown of Unpaid Vacations Based on Cut-off Date:

We have added a new option in the Payroll Setup, allowing you to Break down unpaid vacations based on cut-off dates. 

When the option is selected, unpaid vacation days will be broken down based on the cut-off dates of each month. The daily rate for the unpaid vacation days that come after the cut-off date will be calculated based on the number of days in that month, but the amount will be deducted from the next month since they come after the cut-off date.

Note: This option is only for users that have a specified cut-off date and set their unpaid calculation base as "Calendar".

How to Activate the New Option

To activate the new option, navigate to the User Menu → System Preferences → Financial Setup → Payroll Setup. 

Within the Unpaid Calculation section, select the checkbox labeled "Break down unpaid vacations based on cut-off dates" and click on “Update”.

Breakdown Of Unapid Vacation Examples

Example 1:

 This example shows the breakdown of the unpaid vacation when the checkbox "Break down unpaid vacations based on cut-off dates” is not checked.

Cut-off Date: 25
Unpaid Calculation Base: Calendar

Vacation Duration: August 27th - October 5th

Example 2: 

This example shows the breakdown of the unpaid vacation when the checkbox "Break down unpaid vacations based on cut-off dates” is checked.

Cut-off Date: 25
Unpaid Calculation Base: Calendar

Vacation Duration: August 27th - October 5th