STB Encashment

The STB Encashments feature on ZenHR allows eligible employees to request early encashment of their accrued Service Termination Benefits (STB) directly through the platform. It enables HR and finance teams to configure request rules, set limits, and manage approvals, while ensuring full payroll integration and compliance. 

Once activated, this feature streamlines the entire encashment process, from setup and employee requests to approvals and automatic financial transactions, making STB encashments easier to track, control, and process. 

TABLE OF CONTENTS

• STB Encashment
  • How to Activate This Feature 
  • Manage Encashments
  • My Encashments
  • Termination
  • Approval Cycle

How to Activate This Feature 

User Menu → System Preferences → Financial Setup → Service Termination Benefits → STB Encashments

Only Super Admins and Financial Admins can activate this feature.

When you enable STB Encashments, you can: 

• Set who’s eligible to request encashments

• Define request frequency and encashment limits

• Choose how encashments are labeled in salary slips

When you activate the toggle "Allow employees to request", you must choose the Default payroll status for requests:

• This determines whether employee-submitted requests will be included in Payroll or as Off-cycle payments.
  
  

• You can also define a default STB type per contract type.

  • When an employee with that contract submits a request, the system will apply the matching STB type automatically.
    

Manage Encashments

Main Menu → Payroll→ Manage Encashments → STB Encashments

The admins with the roles Super admin, Financial officer, and employees with permissions given in the permission matrix can access the Manage Encashments page. 

To Add an Encashment:

1. Click "Add Encashment".

2. A side panel will open.

3. Select the Employee

   • The system will automatically populate the STB types that match the employee’s contract.
     
     

4. Select an Effective Date

   • The system will now display the eligible STB amounts and the allowed range.
     
     

5. Choose the Payroll Status (In-Payroll or Off-Cycle)

Once an encashment is added, it will automatically create a financial transaction. The financial transaction will be (income, taxed), and the status will be based on the payroll status chosen for the encashment, and it can’t be edited or deleted in the financial transaction pages. 

My Encashments

Main Menu → Payroll→ My Encashments → STB Encashments

To Submit a Request, the Employee Must:

• Enter the Effective Date
  
  

• The Amount field will be locked until a date is selected.
  
  

• Once a date is picked:
  
  

  • The system checks the employee’s contract type.
    
    

  • It pulls the applicable STB type.
    
    

  • It shows:
    
    

    • Total STB accrued to date.
      
      

    • Eligible STB amount (with a minimum and maximum limit)
      
      

• Fill in any Notes and Attachments (only if marked mandatory in setup)
  
  

• If no STB type is defined for the employee’s contract type:
  
  

  • The Amount will default to 0

The entered amount must:

• Be greater than or equal to the minimum
  
  

• Be less than or equal to the maximum.
  
  

The system will not allow the form to be submitted unless the value is within the allowed range.

Termination

If an employee is terminated after requesting an STB encashment:

• The system will automatically deduct the encashed amount from their final settlement.
  
  

• This will be labeled as “STB encashment settlement.”

Approval Cycle

When the feature is activated:

• A default approval cycle is added automatically.

• The approver is the Direct Manager.

• The default name of the approval cycle is:
   “Service Termination Benefits Encashment Requests”.