New Feature: Employee Leave Expiration

Introducing the latest system expansion from the SimplePay team: employee leave expiration for leave days carried over.

With our aim to give you the ultimate payroll experience, you can now customise your leave settings even further by specifying how long leave carried over from a previous
leave cycle remains valid for. For example, you might have a policy that any unused leave from 2019 may carry over to 2020, but if it is not used by the end of June 2020, it will expire and be forfeited.

This is usually done to ensure that your employees’ leave does not excessively accumulate and aligns with the BCEA, which requires leave to be taken within 6 months of the end of a cycle. In addition, by prompting employees to take their leave in due course, it leads to increased employee well-being which has long-term benefits for both employees and the company. Before implementing this on the system, ensure that it aligns with your company’s leave policy and your employees’ contracts to avoid any labour disputes.

To make use of this new feature on current policies, follow these easy steps:

  1. Go to Settings > Leave.
  2. Click on View next to the leave type that you wish to edit.
  3. Under Available Entitlement Policies, click on View next to the entitlement policy that you wish to edit.
  4. If the Allow leave to be carried forward to next cycle? checkbox is set, there will now be an additional line that appears under it.
  5. In the new field , enter the number of months that leave must be held for before expiring.
  6. Click Save.

If you are creating a new leave policy, you will be able to follow the same process when creating the entitlement policy.

For more information on creating and editing leave entitlement policies, head over to our help page here.

Team SimplePay

7 Replies to “New Feature: Employee Leave Expiration”

  1. now we only need a reminder feature for all active staff a few months before expiry with the EXACT amount of leave days that will expire – currently it’s impossible from the leave balance to distinguish between current cycle leave that won’t expire any time soon and previous cycle leave that will expire

    1. Hi Kilian, thanks for your feedback.

      One of our Support Consultants will reach out to you shortly to discuss further.

  2. Hey Brandon, under current BCEA legislation, it is illegal to have a “use it or lose it” policy – be careful automatically docking people’s leave with this rule (I just spotted it had happened to me) – basic leave entitlement is 15 days and those days are a legal entitlement, you can’t just remove them. A leave policy could allow for an issue above the BEA minimum of 15 days, and this additional allocation could be docked using this rule because those are additional days offered by the company, but you can not dock the BCEA minimum under any circumstances.

    Be careful, this could be a massive can of worms for your clients, and thus for you.

    1. Hi Grant. Thank you for your message and for sharing your concerns. The BCEA states that unused leave should be carried over for a period of 6 months after the leave cycle ends, so we agree with your interpretation. The legislation is unclear as to what happens after those 6 months if employees have not taken the leave, and many companies in practice do expire this leave after a certain period. We implemented this functionality based on the number of user requests from clients to help them mirror the system with their company policy. However, we always stress to clients that they should use a labour lawyer or labour law practitioner when determining their company policy.

    1. Thank you for the suggestion, Ali. At SimplePay, we believe in doing one thing, and doing it well. As payroll is our passion, we have partnered with Xero, one of the best cloud-based accounting software packages in the market, to serve your accounting needs. We integrate the two systems using an API to allow you to easily send information from SimplePay to Xero.

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