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How the 'Elever' vacation accrual is calculated
As a starting point, Elev accrues vacation as regular employees, thus 2.08 per month. On top of these general rules, there is a minimum amount Elev should accrue, and that depends on their start date, or on the date they received the title for Elev.
💡 The start date or title date is only relevant for the calculation of the accrual on the first holiday period. In the second and third holiday periods, the user will receive the amount of 25 days at the start of the holiday period.
We have three main date ranges that apply to the user's first holiday period:
User's start date is between September 1st and October 31st
User's start date is between November 1st and June 30th
User's start date is between July 1st and August 31st
Let's take a closer look at the accrual method and period for these three date ranges:
1. User’s start date between September 1 and October 31 => 25 vacation days
Accruing amount: 2.08 per month, but if the total amount is < 25 days, the system should release the total amount of 25 days
Release period: full amount is released at the user’s start/title date
Example:
A student is employed on 1 October 2020. The student can earn 22.88 vacation days. The student is credited with 2.08 extra vacation days, so that the student can take 5 weeks of paid vacation during the vacation period from 1 September 2020 to 31 December 2021. In the system you will only see the total amount of 15 days. In the following two holiday periods, the student must correspondingly be guaranteed 5 weeks of paid vacation.
2. User’s start date between November 1 and June 30 => minimum 15 vacation days
Accruing amount: 2.08 per month
If the total accruing amount < 15 days, the system releases the difference to reach the minimum amount of 15 days. You will only see the total amount.
If the total accruing amount > 15 days, the system releases the total accruing amount. The user keeps the amount exceeding the 15 days.
Release period: Full amount is released at the user’s start/title date. In the following two full holiday periods, the student must correspondingly be guaranteed 5 weeks of paid vacation.
Example:
A student is employed on 1 December 2020. The student earns 18.72 vacation days. Since 18.72 days is less than the minimum required 15 days, the system releases the total accrued amount.
Example:
A student is employed on March 1, 2021. The student earns 12.48 vacation days. The student must therefore be credited 2.52 extra vacation days so that the student is guaranteed 3 weeks of paid main vacation (15 vacation days). During the following two full holiday periods, the student must be guaranteed 5 weeks of paid holiday.
3. User’s start date between July 1 and August 31 => 2.0833 per month as other employees
Accruing amount: 2.08 per month
Release period: This case is not described in section 42 of the Holidays Act, so we are back to the main rule on accrual, which means that the holiday will be released at the end of the month for holding next month => notice that in SameSystem the release is not on monthly basis, but done at the user's start/title date.
The three date ranges apply to the accrual in the first holiday year. After the first holiday year, the user always receives 25 days on the first day of the holiday period.
Reductions; What happens if a user is terminated or takes unpaid leave?
According to the rules (Holidays Act), the following case explains what would happen. The example relates to the first holiday period.
Example:
An employee starts on November 1st and accrues 20.80 days. The employee goes on maternity leave from December 1st to March 1st (3 months).
In December, January, and February she does not accrue anything, so the balance will be 20.80 - (2.08*3)= 14.56 accrued days.
But the top-up rule says it should be at least 15 days, so we top up the accrual with 0.44 and the user receives 15 days.
If however, the employee leaves the traineeship, the employee will only have the 14.56 days paid - the top-up amount is not paid.
If the user is terminated during the second or third holiday period the calculation of accrual is done as for any other employee.
Unpaid leave during the second or third holiday period
When it comes to the user taking unpaid leave during the second or third holiday period, it is not 100% clear if reductions should be done.
❗ Discuss it with the client and do the setup with the absence type. If they want to have reductions, make the absence type with vacation calculation 0 %. If they DO NOT want to have reductions make the absence type with vacation calculation 100 %:
How to set up vacation rules for 'Elever'
In the vacation type settings, in the Initial accrual method drop-down menu, select Multiple dividing date.
Fill in the Multiple dividing date fields as shown in the screenshot. These settings define the accrual on the first holiday year and apply only to the first holiday period.
At first 25 days ---> applies to users who have start/title date between September 1 and October 31 - they accrue 25 days
No less than 15 days after 31st of October ---> Applies to users who have start/title date between November 1st and June 30th - they accrue a minimum of 15 days, but remember that if they accrue more than 15 days, the users keep the amount exceeding the 15 days. If users accrue less than 15 days they will receive 15 days.
No less than 0 days after July 1st ---> Applies to users who have start/title date between July 1st and August 21st - the calculation is 2.08 per month and adjusted to the user start/date title. For example, if the user starts on July 15th it will accrue only for a half month in July.
In all three cases, the amount is released on the user's start/title date.NOTE: According to the law, users starting in the period July 1st and August 31st should have the amounts released on a monthly basis. However, the system releases them all together at the user start/title date.
Fill in the regular accrual settings as shown in the screenshot. These settings define the accrual after the first holiday period.
Monthly with release in current holiday period: in this case, the user will receive 25 days at the start of the new holiday period, BUT IF the user is terminated during the holiday period OR changes to a title that accrues a different absence type OR has absences where vacation calculation % is < than 100% the amount will be reduced accordingly.
What happens in the system if a user is terminated or takes unpaid leave?
As mentioned earlier in this article, the rules for a terminated user or unpaid leave should be as follows:
Example: An employee starts on November 1st and accrues 20.80 days. The employee starts maternity leave from December 1st to March 1st (3 months).In December, January and February they do not accrue anything. So the balance will be 20.80 - (2.08*3)= 14.56 accrued days
BUT the top up rule says it should be at least 15 days so we top up the accrual with 0.44 and the user receive 15 days
BUT If the employee leaves the traineeship, the employee will have only the 14.56 days paid - the top-up amount are never paid
How do we handle these reductions in the system?
If the user is terminated OR takes unpaid leave in the first holiday period, where the multiple dividing date applies, the system does not make any reduction based on the user's end date or unpaid leave. Therefore, the administrator will have to do a manual calculation to see how many days the user was entitled to without the top up amount.
Example: A user starts on March 1st. The accrual would be 2.083x6=12.5. However, since the accrual for this period range should not be less than 15 days the system releases 15 days. If the user is terminated in June30th, the administrator will have to calculate the accrual for the period March - June => 2.083x4=8.33 days
If the user is terminated after the first holiday period AND you use as regular accrual Monthly with release in current holiday period the system will calculate the reductions.
If you use Basic, this method doesn't make any reductions