Will unused leave be automatically converted to leave encashment when an employee resigns?

Created by Auto Count Support, Modified on Thu, 22 Oct at 2:26 PM by Auto Count Support

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Answer: 


Unused leave is not automatically calculated as encashment when an employee resigns. 

The payroll user needs to manually enter the number of unused leave days to be paid under Paid Leave during the payroll process.




To update the employee’s leave balance, the payroll user can either:

  • Reset the leave balance to zero by creating a Leave Entry; or
  • Leave the balance unchanged if adjustment required.


Note: Leave encashment is calculated during the year end closing process. Therefore, unused leave encashment for a resigned employee must be handled manually during payroll processing.



By Azirah 261022