At Planday, we want to make it easy for you to comply with the new danish vacation law, which is why we are currently developing the supporting settings for managing accrued vacation.
Before the new legislation is fully enforced, we will go through a transition period. We can manage this in Planday, with the current features. This article will:
- tell you how to handle vacation throughout this year.
- show you a detailed tutorial for using Planday to manage the transition period for vacation (from now and until the new vacation law starts on 1. September)
- tell you what you should expect and when.
Vacation management in 2020
The current vacation period will last until 30. April 2020 and should be treated like business as usual.
Afterwards, you will have to setup a new Absence account for the specific period between 1. may 2020 - 31. August 2020, as a new vacation period.
Please note that the period is shorter than usual.
Managing the transition period this way will allow your employees to ask for vacation as usual, within this period.
From the 1st of September, you will have to set up another Absence account, to follow the new vacation law. This is what we are currently developing (when the feature is released, you will find it in the Release notes). After you setup the new accounts, your employees will be able to request vacation for the fall, as they usually do.
How to manage vacation for 1 May-31 August 2020
The vacation year that starts 1. May 2020 will only last until the 31. August 2020. This means that you need to create a new Absence (vacation) account specific for this time period.
The initial balance for vacation days for this period will have to be set based on the following:
For each month an employee has worked from January 2019 to August 2019, you will need to add 2,08 days to their vacation balance.
E.g. for an employee that worked for the full 8 months, the initial vacation balance will have to be set to 16,64 days. (8 x 2,08 = 16,64)
Create a new Account Type:
Go to: “Indstillinger” → “Fraværd” → “Kontotyper” → “Ferie- og fridagskonto”
Choose a “Navn“ and set ”Startværdi“ to 16.64. Make sure that there is NOT a checkmark at ”Forny automatisk“
Add Absence accounts for the employees.
Go to: “Vagtplan” → “Feriekonti” → “Opret konti”
Choose the “Kontotype” you created
Set “Gyldig fra” to 1. May 2020
Set “Gyldig til” to 31. August 2020
Check that the “Startbalance” is set to 16,64 days.
Check that everything is correct.
Absence Accounts until 31. August are now created and available for your employees. For instance, an employee will now be able to request vacation for the summer period of 2020.
Please note, that employees will not be able to request vacation for the fall, yet (after 1. September). This functionality will be added in Planday later this year. Your employees will see a warning when requesting vacation beyond the 31st of August.
Regulation states that if any of the 16.64 days have not been used by the 31. August it will be carried over to the next period which starts 1. September.
If vacations accounts have already been renewedIf an employee has requested vacation after 1. May 2020, this could have created an automatic vacation account for that employee. This account will probably be based on a full vacation year, starting with a balance of 25 days.
If you encounter vacation accounts with an incorrect balance, those accounts have to be deleted and new correct vacation accounts need to be created. You will need to:
- Create vacation accounts based on the tutorial in this article (above).
- Re-create the vacation request on behalf of that specific employee using the new correct vacation account.
- Delete the incorrect vacation account from that specific employee.
To make sure that incorrect vacation accounts are not created automatically we recommend that you:
- Remove the check mark from “Forny automatisk”
- Remove the check mark from “Opret automatisk”;
from the vacation accounts ending on the 30th of april 2020.