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Vacation policy - monthly earning

Vacation days are earned on a monthly basis and added per month

Mathias Anneberg avatar
Written by Mathias Anneberg
Updated over 2 weeks ago

Set up monthly accrual

1. Creating a vacation policy with monthly accrual:

  • Accrual method: Choose "Monthly accrual" as the setting.
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  • Vacation year: Select the official vacation year.
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  • Accrued days: Enter the annual number of vacation days.
    For example, with 25 days per year, the employee accrues 2.08 days per month (25/12).
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  • New employees: Decide if accrued vacation days should be available at the beginning or end of the month.

These settings are configured in the employee vacation policy by doing the following:

  1. Click "Setup admin".

  2. Click "Modules".

  3. Click "Edit" next to the desired policy, or click "Create new policy".

  4. Open the "Vacation" section.

💁 At the end of a chosen vacation period, unused vacation days will be transferred to remaining vacation processing.
From here, the remaining vacation must be either transferred, deleted, or paid out.

Choose vacation method

2. BitaBIZ supports 3 vacation methods for monthly accrual.

The vacation method a staff group should use is selected on the policy as described here:

  1. Click "Setup admin".

  2. Click "Modules".

  3. Click "Edit" next to the desired policy, or click "Add new policy".

  4. Open the "Vacation" section.

  5. Open the subsection "Rules".

Click the image to view the 3 vacation methods:

Read more about the 3 vacation methods for monthly accrual:

  1. Max policy
    📑 User guide: Can only use earned days
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  2. Advance vacation
    ​    📑 User guide: Borrow days not yet earned
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  3. Salary deduction
    📑 User guide: Request days without pay

These vacation methods are selected individually for each staff group in the policy settings.

ℹ️ Approval requirements can be enabled or disabled
ℹ️ Choose whether employees can register half vacation days

💁 Once the vacation method and approval flow are selected, the setup is saved in the policy and becomes valid for the employees assigned to it.

Checklist

Below are additional features that can easily be enabled for your vacation policy!

Should any of these features be enabled?

Minimum vacation balance rule

Activate a rule that requires employees to use a minimum number of vacation days before using “Other vacation”.

💁 If enabled with e.g. minimum 20 days, this helps ensure employees don’t lose vacation days.
According to the Danish Holiday Act, up to 5 unused vacation days can be carried over or paid out.

Remaining vacation in the transition period

If the Danish vacation year is selected, old vacation days expire on December 31st.

Old days is used before new days during the transition period from September 1st to December 31st.

Fixed official holidays

40+ countries supported with national holidays.

ℹ️ Vacation days that overlap with official holidays do not count as used vacation days and are not deducted from the vacation balance.

💁 Add official holidays to your policy – they will be automatically booked in employee calendars.

Floating holidays

Floating holidays are requested by employees on self-selected dates.

💁 There are two ways to create a balance for floating holidays:

  • Other vacation balance

  • Day bank balance

Both balances can be renamed to “Floating holidays” and support accrual of days.

ℹ️ Floating holidays allow employees to take holidays that match, for example, their religious beliefs.

Weekends

Work week

Should weekends be included in the vacation calculation, or should they be marked as a day off, that does not count?

💁 Set this in the policy under Work week -> Weekend days off.

Notifications

Approver: Reminder

If vacation & absence registrations are not approved by a selected date each month, a reminder can be sent to the approver regarding the missing approvals.

ℹ️ Enable the reminder here:
Modules → Notifications & rules → Payroll admin

Payroll export

Vacation can be transferred to the payroll system.

📑 Read more about payroll export here!

💁 Vacation that has been payroll processed is locked and can no longer be deleted by employees or approvers.

Outlook Exchange integration

Vacation is added to the employees Outlook calendar, if the integration is activated.

📑 Read more about the Outlook integration here!

Advance vacation policy setting

If allow advance vacation has been activated as vacation method.

ℹ️ There is two options:

  1. It is allowed to carry forward a negative balance into the next vacation period

  2. It is not allowed

💁 If negative balances are allowed to carry forward, make sure this is coordinated with your payroll system.

ℹ️ It is selected on the policy under the "Rules" tab for vacation whether it should be allowed to transfer advance vacation to a new vacation period.

Mark til setting with a checkmark, as shown in the image, if this should be allowed.

Fixed paid staff and hourly paid staff

Different payroll codes for vacation can be added to each policy.

ℹ️ This allows different employee groups to have their vacation updated with separate payroll codes – making it possible have payroll codes with paid and unpaid vacation.

Vacation policy for apprentices

Apprentices accrue vacation from their employment date.

📑Read more about how to setup a apprenticy policy here!

Vacation policy for part-time employees

Divide part-time employees into two groups:

  • Part-time employees who work all 5 days a week but on reduced hours.

  • Part-time employees who have fixed days off and therefore do not have a working week of 5 days (the focus of this section).

How to setup a policy for employees with a fixed day off

The number of vacation days created for the policy for part-time employees with one or more fixed days off are converted according to the number of weekly working days:

Example: 1 fixed day off per week -> 4 working days per week

If your vacation plan offers 25 days per year:

  • Reduce the number of days per year with 5 days to 20 days

This can be adjusted on the employee's vacation policy by doing the following:

  1. Click "Setup admin".

  2. Click "Modules".

  3. Click "Edit" next to the desired policy.

  4. Open the section "Vacation".

ℹ️ Do you need to export vacation days to your payroll system, but the system can’t handle uneven/reduced balances?

Choose: Payroll system 1:1.25 (part-time 4 working days).
This ratio will update your payroll system as if the employee has 25 vacation days.

This setting is found here:

  1. Click "Setup admin".

  2. Click "Modules".

  3. Click "Edit" next to the desired policy.

  4. Open the section "Vacation".

  5. Open the subsection "Payroll"

Fixed day off

Make sure to book the employee’s calendar with their fixed day off. This will establish a 4-day workweek.

When the fixed day off is booked in the employee's calendar, the employee will use 4 vacation days to book a full week (5 working days) vacation.

With the weekly day off booked, an employee with 20 vacation days per year can book 5 vacation weeks.


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Create custom registration type: Fixed day off

You will need to use the module Planning & overview to create the registration type Day off. Read more here!

The module supports recurring event. Hence, you will be able to book a whole year with the day off in just one registration.

💁 We recommend not booking more than one vacation year at a time with the fixed day off.

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