Leave Entitlement Calculations During the Waiting Period

 

This article explains how to set up the automatic calculation of leave entitlements in Personio for your employees during the waiting period. It also describes how leave entitlements are accrued during the first six months of employment.

Click here to find out how to configure absence types and accrual policies.


Configuring waiting periods

Waiting periods can be enabled for any accruals that you have defined annual entitlements for. Go to Settings > Absence and create a new accrual policy or edit an existing policy.

If your employees have annual leave entitlements, another box is displayed underneath: Enable waiting time? If you select Yes, another entry field is shown suggesting the monthly entitlement during the waiting period. Edit this number as required, or accept the suggestion shown.

settings-absence-accrual-policy-enable-waiting-time_en-us.png

Waiting periods can only be enabled for absence policies that provide for annual leave entitlements. The waiting period checkbox is greyed out where entitlements accrue on a monthly or other basis.


Calculating and Allocating Waiting Period Entitlements

A new employee’s pro-rata annual leave entitlement is calculated on the basis of the company’s absence policy and the employee’s hire date. The leave entitlement for the first month of work accrues to the new employee exactly one day before they have completed this period. On the last day of the sixth-month period following the hire date (i.e. at the end of the waiting period), Personio adds the remaining entitlement to the employee’s leave account.

Example:
A new employee was hired on 15.03.2018. They are entitled to 30 vacation days per full year of continuous employment.

Their leave entitlement for the first year is calculated as follows:

2018 entitlement: 30/12*9 = 22.5 -> 23 days*

Date on which the entitlement accrues calculation Entitlement
14.04.2018 30/12 2.5**
14.05.2018 30/12 2.5
14.06.2018 30/12 2.5
14.07.2018 30/12 2.5
14.08.2018 30/12 2.5
14.09.2018 23 (pro rata entitlement for the full year) - 12.5 (accrual during the waiting period) 10.5 (remaining entitlement for 2018)

* Personio always rounds annual leave entitlements up.

** Personio does not round off monthly entitlements.

 

An extract of the employee’s leave history is shown below:

profile-absence-calendar-history_en-us.png


Carryover to the Following Year

Please note that the leave entitlements accrued during the waiting period do not expire in the next year or at the next defined carryover limit, but only at the end of the subsequent period.

Example:

If an employee is hired on 01.10.2018, their accrued leave (i.e. a prorated entitlement of 7.5 days for 2018, given a total of 30 days’ annual leave) does not expire on 31.12.2018, but only on 31.12.2019. This also applies to individually configured carryover limits, for example 31.03. In this case, the leave entitlement accrued during the waiting period would only expire on 31.03.2020.

 

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