Leave encashment for terminated employees

When an employee leaves the company with unused leave days, you can pay them out automatically through Payroll — no manual calculations needed. This feature is available for companies subscribed to both Swingvy Leave (Premium) and Swingvy Payroll. There are two parts to set up: 1) The admin enables termination payout in Leave settings, then 2) the payroll manager configures the pay item and runs the import on Payroll.

Enable termination payout (Leave)

Step 1 - Go to Leave > Settings, then open the leave type you want to configure (Annual leave, Off-in-lieu, or a custom type).

Step 2 - Scroll down to "Manage unused leave" > "Unused leave settlement" and click Edit.

Step 3 - Toggle Termination payout to ON and click Save.

Configure the Leave encashment pay item (Payroll)

Step 1 - Go to Payroll > Settings > Payroll items > Additions.

Step 2 - Find Leave encashment, click Edit, set "Amount to Calculate" based on employees' salary, choose the pay items to include, and click Save.

Example of Leave encashment payout

1.  Monthly salaried employees
   

   Country	Time	Scheduling
   Singapore	(Total wage x 12 months) / (52 weeks x 'Weekly working hours' from Workgroup setting) x No. of days	(Total wage x 12 months) / (52 weeks x 'Normal working hours per week' from Pay policy setting) x No. of days
   Malaysia	Total wage / working days in the month x No. of days	Same as Time

   Total wage = Basic salary + Additions − Deductions, taken from the selected salary reference month

    

2. For weekly, daily, or hourly employees, the payout is calculated as the employee's rate multiplied by the number of days being encashed (e.g. for a daily rate: daily rate × No. of days).

Import unused leave into a pay run (Payroll)

Once the settings above are complete, the admin can import unused leave balances directly into the pay run.

When running payroll, if there are employees leaving that month with unused leave to settle, the admin will see a banner at the top of the Run payroll screen. Click "Encash leave" on the banner to go straight to the import dialogue.

Step 1 - In Run Payroll > Step 1, click the Import dropdown and select "Import unused leave" from Leave.


Step 2 - Review the list of employees and their leave balances. Tick the employees and leave types you want to encash, then click Import.

The list will be automatically filtered based on the type of payroll:

• Monthly and Mid-month payroll: Employees terminating in the current payroll month.

• Ad hoc payroll: Employees terminating the current payroll month or the previous month.

• Only employees with a positive balance will appear.  If a balance has already been imported in another pay run, it won't appear again.

Some employees may not appear on the list:

• The employee is not included in this pay run — tick them in the payroll table first.

• They have pending leave requests — those need to be approved or rejected before you can encash their leave.

• No monthly payroll has been completed yet (Ad hoc/Mid-month only) — the system needs a completed monthly payroll to calculate the payout rate.

Review and adjust the payout amount (Payroll)

After the import, you can adjust the payout calculation before finalising payroll, if needed. There are two types of balances shown:

• Unused carry-forward: Any leave balances that are carried forward and has not been used or expired.

• Balances excluding carry-forward: The rest of the balance from this cycle.

   

By default, the system will use the termination month as a reference to calculate and apply the unused leave encashment. If you would like to change this,

• Click Edit on the Leave encashment row, select a different month from the Salary reference month dropdown, and click Save. The payout amount will recalculate automatically.
  (You can reference the current payroll month or any month from the past 2 years where a monthly payroll was completed.)

Remove an imported encashment (Optional)

If you've imported leave but need to undo it before payroll is finalised:

• Remove one employee's encashment: Click the 🗑️ next to their leave encashment section and confirm.

• Remove all encashments: Click "Delete all" in the Leave encashment header and confirm.

• Untick an employee from the pay run: This also removes their imported leave encashment — a confirmation prompt will appear.

Once removed, the employee's leave balance is restored and they can apply for leave again. A record of the reversal is created in their "Leave balance history".