What is a leave balance reset?
A leave balance reset is when an employee’s leave balance is refreshed at the start of a new leave period. This ensures that leave is tracked correctly and that employees begin each cycle with the right balance based on your company’s policy.
A reset can happen in two common ways:
- On a fixed date (such as the start of the year)
- On each employee’s work anniversary date
This flexibility allows companies to choose what works best for their structure.
How does a leave balance reset work?
At the end of each leave cycle, the system automatically updates employees’ leave balances based on your configured policies:
- Without carryover enabled: Any unused leave from the previous cycle is forfeited, and the balance resets to zero.
- With carryover enabled: A portion or all unused leave is transferred to the new cycle, according to the limits you’ve defined.
Once the reset is complete, a new leave cycle begins. Employees will either receive their full leave entitlement upfront or accrue it gradually over time, depending on your setup.
This entire process runs automatically in the background, ensuring accurate leave balances without requiring any manual intervention.
Steps to configure leave balance reset
- Go to Settings
Open the Settings section where all system configurations are managed. - Navigate to the Balance Reset section
Access the Balance Reset settings where you define how and when leave balances should reset. - Select a fixed month (if applicable)
Choose a specific month if you want all employees to have their leave reset at the same time. The reset will happen automatically at the start of that month every year. - Enable anniversary-based reset (if needed)
If you want some or all employees to reset based on their joining date, enable the Anniversary Reset option. This means each employee will have their own reset date based on when they joined the company. - Set or update the employee joining date
For anniversary-based resets to work correctly, make sure each employee has a joining date added in their profile and activate the anniversarry reset icon under each employee profile.- You can set this when creating a new employee
- Or update it later for existing employees
- Click Save
Save your settings to apply the balance reset rules.
What does this mean for employees?
Employees will have their leave balance refreshed either:
- At the same time each year (fixed month), or
- On their individual anniversary date
Depending on your setup, their unused leave may be carried over, limited, or removed. This gives them a clear starting balance for each new cycle.
Why is this important?
Setting up leave balance reset correctly helps you:
- Keep leave balances accurate and up to date
- Apply policies consistently across employees
- Support different workflows (company-wide vs. anniversary-based)
- Reduce manual work and avoid confusion
By configuring leave balance reset properly, you create a clear and organized system where both admins and employees always know when balances refresh and how leave is managed over time.