What Is Leave Balance?

A leave balance is the total amount of available time off a professional has remaining for a specific period. This can include both paid and unpaid time off, though tracking paid time off or PTO is a practice that’s far more common.

Can you offer your staff more than one leave balance?

You can offer different leave balances as parts of different leave policies. For example, you may offer 20 days for vacation, along with 90 days for parental leave. In many places across the globe, arrangements like these may be enforced by different laws. As a result, your business will have to be able to track leave balances across several leave policies to remain compliant.

How can you track leave balances?

You can track leave balances either manually or with a leave management tool. The first option may be a good fit for your team if it’s on the smaller side. However, larger companies that need to track leave balances across several leave policies are better suited to workforce management solutions like WebWork’s Leave Management functionality.

Can a leave balance be paid out instead of being used by an employee?

Yes, you can offer your employees pay for unused vacation time. This practice is called leave encashment. While doing this has its unique benefits and drawbacks, its legality depends on where your business is located. Consult with a local labor lawyer to find accurate info on the topic.