Leave Encashment is a valuable feature in HRStop that allows companies to compensate employees for unused leave as per company policies. This guide walks you through how to perform leave encashment using the HRStop control panel.
Pre-requisites
- Ensure that the leave category has the “Encashable” option enabled in Leave Configuration.
- Determine policies regarding taxation, rounding off, future leave inclusion, and eligibility before starting the process.
Steps to Encash Leaves in HRStop
Step 1: Navigate to the Leave Encashment Panel
- Go to: Control Panel → Leaves → Balance.
- Click the drop-down beside the "Manually Adjust" button.
- Select "Encash Leave Balance".
Step 2: Set Leave Encashment Parameters
- Till Date: Date until which leave will be considered for encashment.
- Effective Date: Date on which the arrear (encashment amount) will reflect in the employee's payroll.
- Consider Future Leaves: Check this if future-approved leaves should be included.
- Rounding Options: Choose whether to round off the leave balance (Standard, No Round-off).
- Base Days for Encashment: Enter the base days (e.g., 26, 30) to calculate per-day encashment.
- Taxable Option: Check or uncheck based on whether leave encashment is taxable per your company policy.
Step 3: Define Leave Type and Basis of Encashment
- Leave Type: Choose from eligible leave categories marked as "Encashable".
-
Encashment Basis: Select whether the encashment is based on:
- LOP
- Basic
- Basic + DA
- Specified value (manually entered)
Step 4: Set Eligibility Criteria
- Include or exclude deactivated employees.
- Define minimum present days and leave encashment limits (e.g., 10 days max).
- Set conditions to expire remaining balance if not encashed.
Step 5: Select Employees
- Choose employees using filters like Entity, Department, or Employee Code.
-
Optionally, import employee data using the provided Sample CSV File:
- Download the template.
- Fill in employee details and leave encashment values.
- Upload the CSV.
Step 6: Preview and Confirm
- Review leave categories, encashment amounts, and calculations.
- Download details in CSV format to verify amounts before processing.
- Once confirmed, click Next and then Finish.
Post-Encashment
- A confirmation notification will appear.
- Encashment amounts will reflect in the respective employees' arrears section.