Best practice: Automatic accumulation of vacation

Introduction

We here provide you with an overview of how to set up your salary rules for employees with different normal working hours.

Description

Regular normal working hours

Regular normal working hours are a classical full-time work week or part time work week with the same number of hours per day, e.g. 30 hours distributed on 5 X 6 hours. In this case, we recommend that you set up your vacation to run in days format.

You need to use the salary rule Automatic accumulation.

In Accumulation, you select the number of days that are accumulated.

In Accumulation frequency, you select the period for how often you add new vacation time on the vacation account.

We recommend the below setup, if you in your country accumulate 2.08 days per month:

Vacation

  • Rule: Automatic accumulation
  • Salary account: Here you select which salary account the rule applies to. The naming will typically include vacation or holiday
  • Accumulation: 2.08 days
  • Accumulation frequency: Monthly

Please note that other rules may apply in your country, and you would need to differentiate the setup.

Vacation setup - automatic accumulation

Differentiated normal working hours

If you have a different number of working hours per day during the week, e.g. Monday-Thursday 8 hours and Friday 5 hours, we recommend that the vacation account runs in hours. This is to ensure that you do not accumulate or use too much vacation, depending on which days you are off or accumulate on.

We recommend the below setup, if you in your country accumulate 2.08 days per month:

Vacation

  • Rule: Automatic accumulation based on working time
  • Salary account: Here you select which salary account the rule applies to. The naming will typically include vacation or holiday
  • Accumulation: 2.08 multiplied by the average working day
  • Accumulation frequency: Monthly

An average work day is calculated as:

  • For normal working time distributed on one week: Total work time for the week / 5
  • For normal working time distributed on two weeks: Total work time for both weeks / 10

Please note that other rules may apply in your country, and you would need to differentiate the setup.

Vacation setup - automatic accumulation based on working time

Work weeks different from 5 days

If you have employees with a work week different than 5 days, you have two different options:

Option 1 – All work days have the same number of hours

If you have the same number or working hours distributed on your working days, you can set up the rules as in normal working time.

Then you just need to make sure to multiply with a factor on the salary account for the absence code, which is usually set to 5/the number of working days a week, e.g. 5/4 = 1.25. In this way, you make sure that one vacation week corresponds to one work week.

Absence code setup

Please note: You can only use this setup, if you have the same number of work hours per day, e.g. 7 hours a day Monday-Thursday.

You multiply with a factor on 1.25 on the absence codes on the salary account, if the days are the same.

Option 2: Accumulation in hours that can be used crosswise

You can also set up the rule in the same way as for differentiated normal working hours. Here, you do not need to multiply with a factor on the salary account for the absence code. The vacation balance must be set up with hours format.

Different normal working hours

If your employees have a mix of the above scenarios, you can use salary groups to handle it. Here you can set up different salary accounts and add different rules.

Last updated 30 Oct 2020