Dear Fellow HR Practitioners,

The annual leave policy of our company is as follows:

1st year – 4th year 8 hrs./pay period = 12 days/yr. (96 hrs)
5th year – 9th year 10 hrs./pay period = 15 days/yr. (120 hrs)
10th year - 19th year 12 hrs./pay period = 18 days/yr. (144 hrs)
20th year and over 14 hrs./pay period = 21 day/yr. (168 hrs)

For eg. if an employee joins on 11th July 2016, for the first year the leave period would be 11th July , 2016 to 10th July, 2017 which means for this period the employee will be entitled for 12 days or it should be prorated from July, 2016 to Dec, 2016 ,the leave entitlement would be 6 days till December, 2016 and then from Jan, 2017 to December, 2017 , the leave entitlement would be 12 days. Please advise.

Also, please let me know if leaves can be carried forward to the next year and how many leaves can be carried forward to the next year. As per the MOM, the leaves are forfeited if the employee fails to take his leave within 12 months after the end of the 12 months of continuous service.

Thank you.

1. I think it is better use the period 11th July 2016 to 10 July 2016 (1st year) if the leave is changed when the service year increased. This will be fair to everyone. You should use system to track leave if use this method to record. Hard to remember all staff’s join date. Normally, company allow to bring over 7 days to next year. But need to set up a expire/cut-off day.