Why is a reinstated employee's leave balance incorrect?
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 terminates 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 terminates to cater for this scenario, especially in an environment where the company may have employees returning regularly.
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