Create a policy with monthly earning of vacation days

Click: Setup admin -> Modules > Add new policy

When a vacation policy is created a country is selected.

Hereby, standard settings such as vacation year, earning of vacation and rules for spending vacation are automatically set to the policy in accordance with the standard rules for the selected country.

The only settings that need to configured to the policy is:

  • Rules for booking vacation with or without pay and/or rules for reqesting advance vacation days .

  • How should the vacation be applied? At the beginning of the month or at the end of the month?

  • Is employee working part time with fixed days off? Read more here

  • Is employee hourly paid without paid vacation days? Read more her

Below we go through the settings...

Monthly Earning

  1. Select month. Hereby vacation days are earned per month.

  2. Select the vacation year e.g "Denmark 01.09 -31.08" (Hereby the Danish vacation law is activated)

  3. Select if vacation days are added in the beginning of the month or at the of the month (primo or ultimo)

Rules for booking vacation days

  1. Should employee only be allowed to book vacation days that is earned at the desired date of the vacation?

  2. Should employee be allowed to book vacation days not yet earned, but employee will be deducted in salary for the booked vacation days?

  3. Should employee be allowed to borrow vacation days that have not yet been earned without salary deductions. Advance days are set off against later monthly earnings?

  4. Should the employee as a starting point not be able to book more vacation days than earned. But can apply for own paid day off without pay.

1. Our employees may only book vacation days that have been earned

  • with this option activated, your employees can not book more days than earned at the relevant time for the desired event (+ any remaining vacation days transferred).

Add event:

vacation policy

-> Registration pop-up blocks vacation requests that contain more days than earned at the desired date of the event .

Statistics shows:

-> Days available can never go in minus balance. Employees must dispose of their days according to when they are earned.

2. Employees may request vacation that has not been earned - but days requested which have not been earned are settled in the month in question and the days are deducted from the salary.

  • With this option activated, employees will be deducted from their salaries for vacation days held that have not yet been earned.

  • Held days that have not been earned at the relevant time for the desired vacation period are deducted from salary / settled in the month they are held.

Add event when applying for vacation with payroll deductions:

vacation request

-> Registration pop-up tells employees that they are applying for days that give pay deductions.

Statistics when registering vacation that results in payroll deductions:

vacation statistics

-> When days that have not been earned are booked, the days are deducted in the month in question. Minus days are not carried forward for set-off in subsequent months' earnings. Vacation earnings are reset and start over the following month.

3. Our employees may borrow vacation days that have not yet been earned without payroll deductions. Optionally with a maximum number of days that can be borrowed.

  • With this option activated, your employees can borrow vacation days that have not yet been earned. Their vacation balance can go into minus a given month without the days being deducted in salary.

  • If an employee books 5 vacation days in October where 2.08 days have been earned:
    - In October, the employee's balance will be negative with -2.92 days.
    - In November, two new vacation days are earned and the balance becomes -0.84 days
    - In December, the advance days are written off and the employee has 1.25 days of pay.

Add event when booking advance vacation:

vacation request

-> Registration pop-up tells employees that advance days are being borrowed.

Statistics when booking advance vacation:

vacation statistics

-> When borrowing vacation days, the available days balance goes in minus. Minus days are offset in the following months in relation to the ongoing accrual of vacation days.

4. Employees may not request more vacation days than earned at the relevant time for the desired vacation. If the employee wishes to book vacation that have not been earned, a registration type "Own paid day off" has been created which the employee must use.

  1. Own paid day off must be used if the required number of vacation days have not been earned at the time in question of the desired vacation.

  2. Employee combines his earned vacation days with pay with his own paid days off without pay.

  3. The method allows the employee to take more than 25 vacation days per year. But a vacation in addition to 25 days per year is paid by the employee himself.

4.1 Policy settings:

4.2 Custom registration types:

Click: Setup Admin -> Modules -> Custom registration types

  • Select that the registration type must be added to the payroll export

  • Enter the payroll ID/number that results in payroll deduction

  • Perhaps the registration type should not be available for all your staff groups?

  • Select days as registration unit

  • Select that the registration type need approval

own paid time off

4.3 Add registration:

own paid time off

Own paid time off combined with a paid vacation!

4.4 Statistics shows:

absence statistics

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