1. If an employee is on monthly accrual, carryover is not allowed and policy renewal on January 1, what happens at year-end?
The employee will receive their monthly accrual on 31 December 2025.
On 1 January 2026, their leave balance will be reset to zero in accordance with the policy.
2. Can I change the carryover setting of the current policy?
It is not recommended to change leave entitlement or carryover settings in an active policy, as this will impact or override employees’ historical transactions and balances.
3. How can I update leave carryover?
Scenario 1: New carry over rule for new year
Example: Carryover rule changes from 50% of annual entitlement to a fixed 2 days, while leave entitlement remains the same.
- Duplicate the existing Time Off policy.
- Keep the policy configuration the same, and update only the carryover rules.
- Assign the new leave policy to employees with an effective date of 1 January 2026.
What This Means for Employees
From 1 January 2026, employees’ leave will follow the updated carryover rules. The leave accrued in 2026 will transition into 2027 based on the new carryover limit.
Why This Approach Is Recommended
- Ensures historical leave data remains accurate
- Avoids retroactive policy changes
- Clearly isolates carryover rule changes
- Ensures a smooth year-end transition into 2026
Scenario 2: Changes for ongoing carry over rule
Example: In 2024, you have set up a policy where employees are allowed to carry over 3 days into next tear. Midway through 2025, you decided to update the policy to increase the carryover to 5 days.
This is not recommended, as the current policy has historical balances calculated based on the existing carryover rules. Making direct changes will impact all historical balances.
We recommend downloading the report to identify the additional carryover days employees are now entitled to, then applying bulk adjustments as needed. You’ll need to reduce the 2025 available balance accordingly to reflect the updated carryover amount. Here's the article on Adjusting Carry Over Balances.
If new rule is to be applied for the subsequent year (example: year 2025 to 2026), kindly create a new policy as shown in Scenario 1.
What This Means for Employees
- The employee’s carried-over leave balance for existing year 2025 will reflect the updated amount based on the adjustment made.
- Any deductions will be visible in the employee’s Time Off balance
- This adjustment does not affect leave already taken for existing year and the historical balances
Why This Approach Is Recommended
- Ensures historical leave data remains accurate
- Clearly isolates carryover amount deduction
- Ensures a smooth year-end transition into 2026
Important Reminder: It is not recommended to change leave entitlement or carryover settings in an active policy, as this may impact or override employees’ historical transactions and balances.
When you are unsure, kindly write to support@omnihr.co for more advice.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article