Negative Leave Balance Restrictions

Negative Leave Balance Restrictions were introduced from Definitiv v3.10. This feature allows customers to configure whether accrual balances for employees can or can not go into a negative value, based on the configuration of the Accrual Type.
​
This update will provide customers with greater control in regard to whether or not accrual balances for employees should or should not be reduced to a negative balance based on their specific company policies.

Accrual types with Leave Options enabled can be configured in the following ways:

When an employee submits a leave application or a line manager approves an employee’s leave, Definitiv retrieves the configuration of the accrual type and determines how it should be processed.

When an accrual type is configured to “Allow Negative Leave Balance Accrual”, Definitiv calculates the employee’s projected accrual balance up to and inclusive of the leave application start and end dates.
​
The leave application will be submitted as “Pending”, and when approved by the employee’s line manager, the employee's accrual balance will be reduced, regardless of whether the employee has sufficient leave accrued to cover the leave application or not.

When an accrual type is configured to “Do Not allow Negative Leave Balance Accrual”, Definitiv calculates the projected accrual balance up to and inclusive of the leave application start and end dates and then determines if the employee will have a sufficient accrual balance or not.
​
If the employee does have sufficient leave accrued, the leave application will be submitted for approval, or marked as “Approved” if approved by the employee’s line manager.
​
If the employee does not have a sufficient accrual balance, an error message will be displayed to the user, and the leave application will not be submitted or approved.

To configure an accrual type with Negative Leave Balance Restrictions, go to Admin, Configuration, Accrual Types, and click the [Edit] button for the Accrual Type you want to configure.

When an employee submits a leave application and the employee does not have a sufficient accrual balance for an accrual type that is configured to “Do Not allow Negative Leave Balance Accrual”, an error message will be displayed to the employee stating they will not have a sufficient leave balance accrued, and to select another Leave Type.

When an employee’s line manager approves an employee’s leave application and the employee does not have a sufficient accrual balance for an accrual type that is configured to “Do Not allow Negative Leave Balance Accrual”, an error message will be displayed to the employee’s line manager stating the leave application cannot be approved due to insufficient leave balance.

Please note that there are certain scenarios where an employee's accrual balance can still be reduced below a negative balance for accrual types configured to “Do Not allow Negative Leave Balance Accrual”. Please see the Future Enhancements section below for further information.

These scenarios are:

How to resolve: Only enable this feature for accrual types if your organisation is not using the Definitiv Personal and TimeClock Apps.

To resolve this, it is advised to notify the employee that in order to process the accrual cash out, their existing leave application will need to be withdrawn.

To resolve this, ensure that an employee has a sufficient accrual balance for the accrual type before adding leave in a pay run.

To resolve this, ensure that an employee has a sufficient accrual balance for an accrual type before adding or importing line items in a pay run.

The following features in Definitiv will be updated in the future to also cater for Negative Leave Balance Restrictions, and are not currently supported as of the Definitiv 3.10 release.