How do we proceed with Year-End Processing if our organization doesn't have a leave encashment policy?

For Year-End Processing on Keka, if your organization doesn't have a specific leave encashment policy, you'll need to establish a default policy to move forward with the process. Here’s how you can approach this:

1. Create a Default Leave Encashment Policy:

Even if leave encashment isn't practiced in your organization, setting up a nominal or placeholder policy in Keka is necessary to initiate the Year-End Processing. This default policy won't have any financial implications but will serve as a procedural step to allow you to complete the process.

Please go through this article to set up Leave encashment policy - Managing leave encashment policies

2. Address 'Pending Leave Requests':

Ensure that all pending leave requests are managed by approving or rejecting them. This step is critical as it updates the leave balances that carry over into the new year.

3. Manage 'Leave Balance Actions':

Review and adjust leave balances as required. This includes verifying carryover amounts and ensuring that any leave set to expire aligns with your organization's policies.

4. Finalize Year-End Processing:

With a default encashment policy in place and after managing leave balances, you will see the option to 'Finalize' the Year-End Processing. Select this to officially close out the year's leave records.

By creating a default leave encashment policy, you ensure compliance with Keka’s system requirements and maintain the integrity of your leave management process. This allows your organization to transition smoothly into the new year with accurate leave records, without affecting your existing leave management practices.