Crystal Annual Leave (Default)

Please see the main article here: https://crystalpayroll.freshdesk.com/en/support/solutions/articles/51000461992-annual-leave-settings-in-depth-overview

Pro Rata Annual Leave Accrual Within the Same Anniversary Year

This guide explains how employees can accrue annual leave on a pro rata basis when their default hours change within the same anniversary year.

This means that one year of entitlement will include hours accrued from more than one set of default hours.

For example, if an employee works 40 hours per week for six months and then 20 hours per week for the remaining six months, they will be entitled to 120 hours of annual leave for that year. (2 weeks at 40 hours = 80 hours) + (2 weeks at 20 hours = 40 hours) = 120 hours.

How to set it up

Go to "Company Settings", then "Payroll Settings", then "Leave Settings".

Ensure both "Update Leave Entitlement Based on New Default Hours" and "Use Default Hourly Rate for Calculating Annual Leave Pay" are unticked.

These are company-wide settings, but note that "Use Default Hourly Rate for Calculating Annual Leave Pay" may also be enabled for individual employees under "Process a Pay", then "Leave Pay Rate".

Make sure it is turned off for each relevant employee as well.

How the system calculates accrual

When default hours are set, the system will use them for accrual over 52 weeks unless an update is made before the next anniversary. If an employee accrues 2 weeks of leave under one set of hours and 2 weeks under another, they will receive a pro rata total. In the earlier example, this adds up to 120 hours.

From the date the new default hours are applied, the employee will start accruing leave at a new weekly rate.

The system uses the date entered under "Default Hours" to determine when the accrual rate changes.

Green Box: 4 ÷ 52 = 0.076923 × 20 hours = 1.54 hours per week

Red Box: 4 ÷ 52 = 0.076923 × 40 hours = 3.08 hours per week

The employee will be paid based on the most recent set of default hours. In this example, that means being paid 4 hours per day for their 4 weeks of leave.

The payslip will show the leave balance adjusting accordingly as the accrual progresses.