Accrual Options

Within time off settings, there is an option to set employees an allowance to accrue called “Timeoff allowances accrual”. If you set this option, an employee will have no entitlement to any allowance until they have accrued the entitlement.

For example, on January 1^st, if you are NOT using accrual, an employee would see all their days leave entitlement and could, in theory, book all those days on January 1^st even though they have not yet actually earned that entitlement. If they left mid-year, it would be possible that they could have taken more than their entitlement.

If you use “Timeoff allowances accrual”, this situation can be avoided. On January 1^st, the employee will show zero allowance as they not yet accrued any allowance. On February 1^st, they would have accrued 1/12^th of their allowance so would be entitled to 2.33 days, on March 1^st, they would have accrued 1/6^th of their allowance so would be entitled to 4.66 days, and so on.

In the case of using Timeoff allowances accrual, you can also set the “Allow employees to request more days than allowance” accordingly which would either allow or disallow them from booking allowance until it is earned.

Within “Timeoff allowances accrual”, there are 4 different ways of calculating entitlement, and these are explained below:

Let’s assume an employee starts on Apr 13^th and the holiday year runs from Jan 1^st to Dec 31^st with a whole year entitlement of 28 days and we want to calculate their entitlement on Dec 22^nd.

• Daily accrual - From 13^th April to 22^nd December is 254 days – this is equal to 69.6% of the working year hence they, at this point, would be entitled to 19.48 days.
• Whole months -In this instance, we work out entitlement in whole months. Between Apr 13^th and Dec 22^nd, there have been 8 months hence the entitlement is 2/3 of the annual entitlement or 18.67 days.
• Actual months -This example works out very similarly to daily accrual but will vary slightly. Between Apr 13^th and Dec 22^nd, there have been 8 months and 10 days. One “month” is 1/12 of a year hence is equal to 30.42 days therefore the calculated value is 8.3333 months which gives an allowance of 19.37 days.
• Whole completed calendar months - This final example only gives the employee credit for the completed months they have worked. In this instance, they have worked May, June, July, August, September, October, and November which is 7 months so the outcome is 7/12 of their entitlement or 16.33 days.