New Policy
From time to time, it is necessary to change an employee's policy. For example:
Full time to part time
Hourly paid to fixed paid
Expats switching between countries
A policy is a set of rules that governs employees' vacation and other vacation balances.
When a policy is changed, it can alter the calculation basis for the balance. A vacation balance consists of several variables used in the calculation:
Earning
Days used
Balance payouts
Balance adjustments
Balance transfers of remaining days from previous period
All variables included in the balance belong to a period: the vacation year the employee is following, e.g., 1/9 - 31/8.
When an employee gets a new policy, it impacts the vacation and other vacation balance if the vacation period changes:
Change of policy with the same period
| Change of policy with different periods
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No Change of the Balances!
It is possible to switch between monthly and annual earning without affecting the balances. | The Balance Changes!
The new vacation year under the new policy takes effect as soon as the employee is transferred to the new policy. The old vacation period is converted into the new period.
The balance changes because:
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Change of policy with different periods
From yearly earning with period 1/9 - 31/8 to monthly earning with period 1/9 - 31/12
When an employee changes from a policy with yearly earning (1/9 - 31/8) to the DK vacation year with monthly earning (1/9 - 31/12).
The old vacation balance period is closed.
The new vacation period starts from the active year you are in.
The new period is not created back in time. Only from active vacation year.
Employees and administration cannot create registrations back in the old period that is closed.
Expats who change from another country to the DK vacation year or Vice versa
Expats who change from another country with yearly earning to DK vacation year with monthly earning or vice versa.
For example, from the period 1/1 -31/12 (yearly earning) to the period 1/9 - 31/12 (monthly earning)
ℹ️ Here, a new profile must be created for the employee in BitaBIZ, which is then added to the policy.
💁 The old profile is made inactive, where the employee's history and statistics are preserved from the old policy.
Unsure if an employee has received a new vacation balance period?
On the employee's master data card, you can see when a policy is effective: the policy's effective date.
If an employee has received a new vacation balance period, the policy will be effective from the start date of the new vacation balance period. For example, 01.09.2024.
A vacation balance is locked for changes (registrations and adjustments) prior to the policy's effective date.
How do I move an employee to a new policy?
You select the new policy on the employee's master data card and save the employee. This will implement the change.
💁 But remember that a changed policy can mean a changed calculation basis for the vacation balance. Therefore, check the employee's vacation balance before and after the change.
Best practice
When an employee group needs a new policy. Best practice is to create the new policy as step 1. Then move the employees to the new set of rules. And at the same time check whether the change requires the vacation balance to be manually adjusted.
You should also consider when to change an employee's policy. A good time is when a vacation year changes and the remaining vacation has been processed and logged.