When configuring a new time off policy, you stumble upon a lot of terms that might sound unfamiliar to you. And that's okay! Here, we have assembled the most important terms for you to understand. These include:
To start setting up your time off policies, refer to this article.
The Annual grant refers to the number of days/ hours employees are entitled to a year. This number is normally based on a worker who works a 5-day week and has started before the time off cycle begins. The minimum entitlement (called 'base allowance'in Kenjo) is stated by law. For example:
- Spain Statutory annual leave entitlement (full time worker) - 22 days per year
- Germany Statutory annual leave entitlement (full time worker) - 20 days per year
An employer can choose to offer more leave than the legal minimum. They do not have to apply all the rules that apply to statutory leave to the extra leave. For example, a worker might need to be employed for a certain amount of time before they become entitled to it.
At Kenjo, the annual grant can start in the employee's start date of the contract, in the first date of each month, or at once.
Accrued time off
Accrued time off refers to the time off that an employee has earned or accumulated over a period of time. In our software, employees can accrue time off on a monthly or yearly basis. This means:
- Monthly (known as 'Accrual'): Employees receive 1/12 of the base allowance each month
- Yearly (known as 'Lump Sum'): Employees receive the full base allowance all at once
|Employees receive all their paid time offs at once.||Employees receive or rather accumulate their paid time offs over a period of time.|
|Typically given at the beginning of the calendar year or fiscal year||Given monthly*|
|Employees might take all their paid time offs at one go or in clusters||Employees will have to use their time offs in a staggered manner instead of using them all at once|
*If the accrual frequency is monthly, you can select the accrual timing:
- Start of accrual period (given in advance) - employees receive the calculated grant allowance on the first day of the accrual period
- End of accrual period (given once worked) - Employees receive the calculated grant allowance on the first day of the next accrual period
Prorated time off
You can select if the base allowance should be prorated or 'adjusted'. Prorating happens when an employee accrues/accumulates time depending on the fraction of time they work in a set cycle. For example, let's imagine that the cycle for a time off policy begins in the 1st of January. If a worker starts their job part-way through a leave year, they’re only entitled to part of their total annual leave for the current leave year. What they get depends on how much of the year is left.
In Kenjo, you have the option to decide whether the base allowance of a policy should be adjusted based on certain conditions that the employee may have:
- A new employee starts after the policy cycle has begun
- A current employee has a contract end date in their employee profile
- An employee has a part-time work schedule assigned to them
In any of these cases, you can choose if their balance should be prorated (adjusted) or if they are granted the full allowance as per the policy.
|New employees||No proration (give the full amount)||The employee will receive the full entitlement.|
|Prorate based on the employee's start date||The employee will receive the entitlement prorated based on how many days are remaining in the accrual cycle.|
|Contract end date||No proration (give the full amount)||The employee will receive the full entitlement.|
|Prorate based on the employee's contract end date||The employee will receive the entitlement prorated for how many calendar days they will wrk in the cycle. |
This will be based on the contract end date in People > Compensation > Employment.
|Part-time employees||No proration (give the full amount)||The employee will receive the full entitlement. |
|Prorate based on the employee's work schedule||The proration is calculated with a specific formula*|
*The formula used to calculate the proration based on the employee's work schedule is:
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