How the leave balances will be affected in case of a change in leave plans?

Introduction

When an employee's leave plan changes—whether due to a policy update, role change, or internal transfer—it can impact their leave balances. Keka automatically handles most of these adjustments, but it’s important to understand how accruals, carryovers, and expiries are recalculated.

This article explains what happens when a leave plan changes and what admins may need to do during the transition.

Pro-rata adjustments

If a new leave plan starts mid-cycle, Keka recalculates the balance based on how long the employee was on the old vs. new plan.

Example:
If the old plan ended in June and the new one started in July:

• Accruals stop based on the old plan’s rules as of June 30.

• The new plan’s accruals begin from July 1.

This ensures that leave earned is proportionate to the time spent under each plan.

Carryover and expiry rules

When moving from one plan to another:

• The new plan’s carryover and expiry rules take precedence.

• If the old plan allowed carryover but the new one doesn’t, unused leave may expire.

• If the new plan allows limited carryover, excess leave beyond the limit will not be retained.

It’s important to review the destination plan's rules carefully during migration.

Manual adjustments

Sometimes, discrepancies may appear during a plan switch—especially if policies weren’t configured properly beforehand.

• Admins can manually update leave balances to correct issues.

• Use these adjustments to reconcile balances that don’t align with expected outcomes.

Notes, Tips, Important, Warnings

Tip: Double-check carryover settings and accrual cycles when assigning new leave plans to avoid unexpected balance loss.

Important: Manual adjustments should be documented for audit and transparency.