Vacation Settlements

What is Vacation Settlement meaning?

This is a financial settlement for an employee's unused leave balance upon termination of employment or in specific cases where converting accrued leave into monetary compensation is allowed.

How to Configure Vacation Settlement Settings in the System

If the company's policy requires reviewing and approving an employee's attendance sheet before their vacation Settlement can be approved, then the relevant option must be activated. By clicking the activation button, the step of confirming the employee's attendance sheet will become mandatory before the clearance can be approved. It should be noted that the task of reviewing and approving the attendance sheet must be assigned to the designated person.

If the company's internal policy allows employees to request advance vacation salary when taking annual vacation, it is important to activate this feature or policy in the system by navigating to: Settings > Payroll > Settlements > "Vacation Settlement" tab, activate this policy "Limit the number of days to request advanced vacation salary" by clicking the activation button:

Upon activating the Jisr system allows you to define the company's policy regarding the minimum annual leave balance an employee must have to be allowed to request annual leave with advance salary, by selecting the number of days from the list. Example: If we set the minimum to 10 days, and an employee submits an annual leave request for 7 days with advance salary, the system will not automatically allow the submission, and the following error message will appear when they attempt to submit the request.

The user can choose the method for calculating vacation settlement and specify how the settlement should be calculated based on the basic salary, basic salary plus some allowances, or the full package.