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Administrator Guide
Last Updated: 2026-06-26
Steps: Enable Termination Adjustments for Time Off Plans

Steps: Enable Termination Adjustments for Time Off Plans

Configure the time off plan to track balances.
Workday can create termination adjustments for selected time off plans to set employees' balances to zero. Workday creates these adjustments when you terminate employees using the
Termination
 business process or
Terminate Employee
 web service.
Workday uses time offs, accruals, and any adjustments for dates on or before the termination date to determine the amount of an adjustment. Workday doesn't process balance adjustments of greater than 1000 units.
Termination adjustments are visible to administrators but hidden from employees until the day after their termination date. Employees continue to see their unadjusted balances and can request time off as before.
  1. Add the
    Adjust Time Off Balances
     service after the completion step of the
    Termination
     business process.
    See:
  2. Decide which time off to adjust for a plan when you terminate an employee.
    Consider if Payroll retrieves adjustment units for the time off. If it does, are there impacts of termination adjustments on Paid Time Off, Unpaid Time Off, and Time Off Totals? Also consider how you want to report payouts, if applicable, on payslips.
  3. Select the time off to use to create termination adjustments for a plan.
    1. Access the
      Create Time Off Plan
       task.
      Security:
      Set Up: Time Off (Calculations - Absence Specific)
       domain in Time Off and Leave functional area.
    2. On the
      Time Off
       tab, add the time off to the plan.
    3. Select the time off as the
      Time Off for Termination Adjustment
      .
  4. Make sure that eligibility requirements for the time off plan, its accruals, and the adjusting time off cover employees who are terminated midperiod.
    To receive a termination adjustment, an employee must meet eligibility requirements on the effective date of the termination. When eligibility rules don’t cover employees who are terminated midperiod, the adjustment amount and time off reports for these employees can be inaccurate.
Workday generates a termination adjustment that's visible to administrators on the
Termination Adjustments
 tab of the
Maintain Accrual and Time Off Adjustments/Overrides
 task. The adjustment takes effect on the termination date.