We’ve introduced two new options to the System Settings page under a new category called Leaver Settings. These enhancements aim to provide greater flexibility and clarity in managing entitlement calculations for leavers.
Overview of New Settings
1. Prorate Leaver Calculations By:
This setting determines how entitlement for leavers is calculated based on the time they worked in their final year.
Options: Day, Week, or Month.
Functionality:
The calculation uses the number of days, weeks, or months worked in the final year as a proportion of a full year.
This feature has been moved from the Master Admin section to the System Settings page, enabling Admins to adjust it directly and even apply it differently across inheritance levels.
Existing data will remain unaffected, as the current Master Admin setting is mapped to the global value of this new setting.
Tooltip:
Determines whether entitlement for leavers should be calculated based on the number of days, weeks, or months worked in their final year.
2. Leaver Proration Rounding Policy:
This new setting allows admins to define how rounding is applied to leaver entitlement calculations.
Options: Includes our usual selection of rounding policies, such as:
Round up
Round down
Nearest whole number
Away from zero
Towards zero (only relevant for balances that may be negative).
Functionality:
In entitlement pots made up of multiple elements, individual elements are not rounded. Instead, rounding is applied at the pot level to avoid discrepancies where rounded element values don’t match the total pot value.
This feature ensures consistency and reduces confusion.
Tooltip:
Set the rounding policy that should be used for the leaver proration calculation. Away from zero and Towards zero are only relevant for balances which may be negative.
Additional Changes
The existing field for default entitlement rounding policy has been renamed to Rounding Policy for Default Entitlement for clarity.
These settings apply to both pending and locked leavers, maintaining the current behaviour.
Where to Find These Settings
The Leaver Settings section is located beneath the HR Contact Settings in the System Settings page. Here, you can:
Adjust the Prorate Leaver Calculations By setting at the system level (this does not apply at the pot level).
Set the Leaver Proration Rounding Policy, which applies globally within the system.
Practical Application
When previewing leaver entitlements, you’ll see the impact of the rounding policy and proration option (Day/Week/Month) directly in the entitlement preview.
Text changes dynamically based on the proration option selected, providing clear and relevant information.
Why These Changes Matter
These updates aim to provide greater clarity, consistency, and control over how leaver entitlements are calculated and rounded. By enabling settings at the system level with inheritance support, admins can ensure fair and accurate entitlement calculations tailored to their organisation’s needs.
If you have further questions about these new settings, please contact our support team for assistance.