How Does 'Set Expiry for the Credit' Work?

Understand how the Set Expiry for the Credit feature works in the Leave Module. Configure expiry periods for leave credits to ensure unused leave is either forfeited or managed according to your company’s leave policies.

How 'Set Expiry for the Credit' Works

The Set Expiry for the Credit option allows you to define a validity period for leave credits. This applies to leave types like replacement leave or other credits, ensuring they expire after a specified duration.

Steps to Configure Leave Credit Expiry

In HR Lounge, go to the Leave Module.
Select the applicable leave type and policy.
Under Leave Credit Settings, enable the Set Expiry for the Credit option.
Define the expiry period (e.g., credits expire after 12 months).
Save the settings to apply changes.

What Happens After the Expiry Period?

Any unused leave credits will be automatically:
- Forfeited based on policy rules.
- Carried forward, depending on the leave configuration.

This helps in better leave balance management and aligns with company leave policies.

Notes & Tips:

Setting Expiry for Credit: This setting is useful if you want to prevent employees from accumulating too many unused leave days. It helps enforce a "use it or lose it" policy, ensuring that leave balances are used within a certain time frame.
Replacement Leave Credit: For more details on how to set up credit leave, refer to this article on how to create and set up a replacement leave credit type.
Carry-Forward Option: If you allow employees to carry forward unused leave credits, you may need to adjust the expiry period accordingly to prevent unclaimed leave from being lost.