LEAVE MODULE RELEASE NOTE- PRORATION ENHANCEMENT DECEMBER 2025 V 1.1(A)

This release is on proration enhancement and it introduces flexible leave proration options, allowing organisations to calculate prorated leave based on Employment Date, Confirmation Date, or Contract Start Date. This enhancement addresses the diverse leave allocation needs of different organizations, particularly those with contract-based employment structures or probationary periods that affect leave eligibility. The system now accurately handles complex scenarios including multiple contracts within a year, paygrade changes, and mid-year confirmations eliminating manual adjustments and ensuring fair, transparent leave calculations.

When creating or editing a leave policy, admins can now choose how they want leave days to be prorated by selecting from three options:

Employment Date — Leave is calculated from the employee's first day of work to the end of the leave year
Confirmation Date — Leave is calculated separately for probationary and confirmed periods, then combined
Contract Start Date — Leave is calculated based on when the employee's contract begins, with support for multiple contracts within the same year.

Previously, the system only prorated leave based on Employment Date, which created inaccuracies for organizations that tie leave eligibility to confirmation status or contract periods.

How Each Proration Method Works:

Employment Date Proration; Leave is calculated proportionally from the employee's first day of work to the end of the leave year (either Calendar Year or Fiscal Year).

Example: If an employee joins on April 1, 2025, with an annual entitlement of 24 days in a Calendar Year (Jan–Dec), they would receive 18 days for 2025 (9 months remaining ÷ 12 months × 24 days).

Confirmation Date Proration; When an employee transitions from probationary to confirmed status, the system calculates leave separately for the time spent in each status, then adds them together.

Example: If an employee starts on January 1, 2025, with 7 days/year as unconfirmed staff and gets confirmed on April 1, 2025, with 15 days/year as confirmed staff:

Unconfirmed period (Jan–Mar): 1.75 days
Confirmed period (Apr–Dec): 11.25 days
Total eligible: 13 days

If the employee already used 3 days during probation, their available balance would be 10 days.

Contract Start Date Proration; Leave is calculated from the contract start date to the end of the leave year. For employees with multiple contracts or paygrade changes within the same year, the system calculates leave for each period separately and adds them together.

Example — Single Contract: If an employee's contract starts on April 1, 2025, with 24 days annual entitlement in a Calendar Year, they receive 18 days for 2025.

Example — Multiple Contracts: If an employee has three contracts in 2025:

Contract A (Jan–Mar): 3 months with 10 days/year entitlement = 2.5 days
Contract B (Apr–Apr): 1 month with 10 days/year entitlement = 0.83 days
Contract C (May–Dec): 8 months with 10 days/year entitlement = 6.67 days
Total eligible: 10 days

Example — Paygrade Change/Promotion: If an employee is promoted mid-year from a paygrade with 10 days/year to a paygrade with 17 days/year on April 1:

Period at lower paygrade (Jan–Mar): 2.5 days
Period at higher paygrade (Apr–Dec): 12.75 days
Total eligible: 15.25 days

Special Scenarios Handled:

Confirmation with Contracts: When a leave policy has different entitlements for confirmed and unconfirmed staff, the system determines which entitlement to apply to each contract based on whether the confirmation date falls before or after the contract end date.
Negative Balances: If an employee has taken more leave than their prorated entitlement (resulting in a negative balance), the system handles this based on the policy settings. For accrual-based policies, it checks if remaining accrual days can cover the deficit. For non-accrual policies, it rounds the balance up to zero.
Leave Balance Breakdown for Employees: Employees with multiple contracts or paygrade changes during the year can view a detailed breakdown showing time spent at each level, leave balance from each period, total leave balance, leave days taken, and available balance.

Important Notes:

Proration resets at the beginning of each new leave year (Calendar or Fiscal). Calculations from previous years do not carry forward.
Accurate proration depends on correct data in employee records (Employment Date, Confirmation Date, Contract Start Date, Paygrade assignments). Any missing or incorrect information will affect calculations.