It is just mid of March and one of my staff has used up his leave entitlement of 9 days. He has been in our Company since 2012. Are we suppose to pro-rata his annual leave entitlement to safeguard the company’s interest?
Generally, there are 2 ways of how company can grant the annual leave to employees, based on "Earned" method and "Annualized" method, based on Company policy.
For the Earned Leave, employees gain their leave entitlement from month to month, for example, if the annual entitlement is 12 days, then their leave balance that they can apply for is 6 days in June. Such system usually applicable to rank and file employees and supported with the HRIS system that can accurately calculate the prorated leave from time to time.
For the Annualized Leave, employees will be eligible for their full year of the leave entitlement since beginning of year. For example, if annual entitlement is 12 days, employees can apply for 12 days leave right away in January. However, in the event of attrition during the year, employee has to pay back their leave that over-consumed for the year.
