Managing leave without pay

You can manage leave without pay by creating leave categories that don’t track the leave balance for an employee. This means you can create leave categories that employees are eligible to apply for without needing to accrue the leave first.

To start using leave categories without tracking leave balances, follow these simple steps:

1. From the payroll dashboard, click on Payroll Settings > Leave Categories (listed under the Pay Run Settings heading).

    

2. Create a new leave category or click on an existing leave category and under the 'Employee leave balance' field select "Not Tracked" from the dropdown list and click "Save".

    

3. If you want the leave without pay to show on the payslip, under the Payment setup, tick "Report leave earnings against a specific pay category", choose the pay category from the drop down then tick "Is Unpaid leave"

    

4.  If you don't want to show the leave without pay on the payslips you can just tick "Don't pay for the leave taken" under the Payment setup then "Save"

N.B. There are two system default leave categories for 'Leave Without Pay" that are set up as per the above settings so you do not need to create another Leave Without Pay leave category.

Now, when a leave request is created using a leave category without a tracked balance, there is no reference to a leave balance:

Additionally, when this leave request is applied in the pay run, there’s no associated balance that is updated and therefore no pay run warning will appear about the employee having an insufficient leave balance.