Why is a reinstated employee's leave balance incorrect?

Why is a reinstated employee's leave balance incorrect?

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This applies to all  Deel Local Payroll powered by payspace payroll editions

Since the employee has been reinstated, it is the company level user's responsibility to create leave adjustments to clear out previous or correct current balances.

The system works on a premise where it retrieves the last available balance for an employee which then acts as the opening balance of the current period in order to add the current period's accrual.

The last period is typically the previous period when an employee is active but there are scenarios where the last period is not the previous period i.e. in the case of suspension where an employee doesn’t earn anything in a period or maternity leave where an employee is not paid until returning to work, etc.

In both these scenarios, the system picks up the last balance they had and carries on accruing when they return to work.

In the case where the employee is terminated and later returns, the system acts in the described manner to cater for these scenarios. Therefore, it is the responsibility of the employer to zero all balances when an employee is terminated to cater for this scenario, especially in an environment where the company may have employees returning regularly.



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Important Scenario: Sick & Family Responsibility Leave Accrual is 0.00 when employees are reinstated with a new tax record

If an employee is reinstated with a new tax record, their Sick and Family Responsibility leave accruals will not be awarded.

If an employee accrues leave once in x years, they will only gain leave in the new scheme/cycle, once the x years have passed.
For example, the employee first started in June 2024 and received sick leave days then, under the old scheme.

The employee was then terminated and reinstated in 2025 with a new tax record.

Even though their employment date changed, the system references the previous leave balance and determines that the employee received sick leave accrual days already and will not grant more days until they reach the start of the next cycle.