Leave Entitlement and Pro-Rated Leave Calculation
As the entitlement is for 5 days, if an employee avails 2 days of leave, this can be deducted from the entitlement of 5 days. The pro-rated leave calculation can be done if an employee leaves the company. At that time, the entitlement can be calculated for the number of months worked, and if there is any negative leave balance from the employee (leave taken beyond entitlement), this can be deducted from the final settlement.
Standardizing Leave Policy
Meanwhile, I suggest you consider standardizing your leave policy, which highlights the total leave entitlement and the maximum number of days that can be taken in a single slot, along with the process around this. In my previous company, the total leave entitlement was divided into 4 quarters. This division allows both the employee and the employer to manage leaves effectively. If an employee exhausts the leave balance of one quarter, the entitlement from the next quarter will be used, and the opening balance for the next quarter will be displayed as (Quarter entitlement - extra leaves taken in the previous quarter).
Regards,
Thiyagu