Someone who joins in July is not entitled to the full annual leave balance. This article shows how to calculate and configure leave balances on a pro-rata basis, and the key points to remember when employees join or leave the company mid-year.
The pro-rata principle
The most common method is to divide the annual balance by 12 and then multiply by the number of working months remaining in the year. Someone who joins on July 1 with an annual balance of 12 days will have 6 days for the rest of the year.
| Start date | Months remaining | 12 days/year balance |
|---|---|---|
| 01/01 | 12 | 12 days |
| 04/01 | 9 | 9 days |
| 07/01 | 6 | 6 days |
| 10/01 | 3 | 3 days |
| 11/15 | 1.5 | 1.5 days — round according to company policy |
The rounding method must be set out in writing before it is applied: round up, round down, or keep 0.5-day fractions. Without a written policy, everyone does it differently and there will be complaints.
Configure it in the system
- Go to HR and open the employee profile.
- Switch to the Leave tab.
- Fill in Total leave days with the pro-rated figure.
- Record the calculation method in the notes field, for example "Joined 07/01, 6/12 of a 12-day balance".
Recording the calculation takes ten seconds but saves you from an argument six months later, when the employee asks why they only have 6 days.
Probation period
Leave policies during probation vary by company and by each country's labor regulations. Three common models:
- No leave during probation — the balance is granted on the date the official contract is signed.
- Leave from the start date — the balance is granted pro rata from the start date.
- Accrued but not yet usable — the balance is granted immediately, but the leave type is disabled for probationary employees.
Regulations on annual leave and probation are a legal matter, vary by country and may change. Let your company's HR and legal departments determine the policy; the software only enforces it.
Employees who leave mid-year
- Export the leave balance as of the termination date.
- Calculate the pro-rated number of leave days they were entitled to up to that date.
- Compare it with the number of days actually taken.
- If the difference is positive, pay it out or grant compensatory time off; if negative, handle it according to company policy.
- Send the result to the payroll team to include in the final pay period (article B9).
Checklist for every new hire
- The Start date has been entered correctly in the profile — this is the reference point for all calculations.
- The leave balance has been granted pro rata and the calculation noted.
- The employee has been included in the scope of the approval flow (the Initiation block includes their branch and department).
- The employee has been shown how to view their leave balance in the app (article B8-11).
