Besides scheduling and time tracking functionality, Planday offers you a way to easily manage vacation periods for your employees.
In Denmark, new regulations have been put in place since the beginning of 2020: which means that vacation management needs to follow:
- a transition period for the 1st of March → 31st of August 2020.
More details here.
- switch to accrued vacation, based on worked hours, from the 1st of September 2020
According to the new Danish Holiday Act, employees will be able to take vacation days as they earn them. In other words, Accrued vacation is based on the continuous accumulation of vacation days based on worked hours. Rather than getting a fixed balance of vacation days at the beginning of a year, your employees will earn vacation days — and can use them — as they go.
If you've been using Planday for a while, you're probably familiar with how vacation is handled, the concept of vacation accounts, and the steps you need to take in order to setup employee vacation requests successfully.
The setup for the Accrued vacation accounts (as an addition to the Vacation feature) follows the same concept as Fixed Vacation accounts.
More details about Fixed Vacation accounts here.
Here is a brief video introduction, to get you started quickly:
Setting up Accrued vacation for your organization
In Planday, Accrued vacation is handled in a few steps:
- a template Accrued vacation account needs to be created and set up to accommodate the needs of Employee groups.
This means that details that are shared by all the employees within a certain category can be store in one place. This could be accruing rate (for instance, the rate for vacation days earned / workdays for a month).
- a copy of the Accrued vacation account template is associated with each one of your employees. This means every employee will have a vacation account connected to their profile. This is necessary to automatically keep track of the vacation days accumulated, the vacation days spent, and the individual request per employee.
- approving or denying vacation requests, based on the balance available and your schedule information.
1. Creating a template Accrued vacation account
The first step for handling accrued vacations for employees starts with creating a template and setting up the shared details.
Go to Settings > Absence, Overtime, Vacation > Account types, and select Create.
Select Accrued vacation account and continue to set up for your template:
- a name. The account name will help you identify the vacation account template you need when connecting it to an employee's profile.
- a description. If there are details that should be specified about your template, this would be a good place to note them.
- the accruing period for the account through the annual start date (defines which date of the year should the accruing period start or renew) and duration (determines for long your employees can accumulate vacation days is or after how many months the balance will reset).
- the spending period for the account also through an annual start date (defines from which date of the year the accumulated vacation days can be used or when they expire) and duration (determines how long your employees will have to spend accumulated vacation days).
According to the new Danish Holiday Act, the accruing period should start on the 1st of September and last for 12 months, while the spending period should start on the 1st of September but last for 16 months.
As an example, this means that the vacation days an employee has accumulated from the 1st of September 2020 to the 1st of September 2021 can be used between the 1st of September 2020 and the 31st of December 2021, as they accumulate.
Click Next to set the specifics for how your employees will accumulate vacation days:
- define whether their balance is accumulated/accruing in days or hours.
- set the accruing rate which defines the ratio for the accumulation of vacation days per worked period.
- set the max. allowance for the number of vacation days an employee can accrue per month or per year. If you don't want to set a maximum limit, simply leave the field empty.
If you set the template to accrue in hours, then the maximum allowance will also have to be set for hours
The Next step in your template creation allows you to set who can use a vacation account created from this template and how they can use it:
- Employee type: which of your employees will the configuration from this template apply for? The employee types in the list will the Employee types you defined under Settings > People > General > Employee types.
- depending on your organization's policy, you might allow your employees to take a few vacation days they haven't yet earned. This will appear as a negative balance (until they earn the amount back) and here is where you can decide how many vacation days they would be able to take in advance.
- you can also set up a limit for how many vacation days your employees can use in a row. This could be useful if you need to keep a close eye on the work balance for employees, so it can automatically trigger a warning when an employee's request exceeds this limit.
- the Carry over option will automatically transfer the unused days to the next accruing period if allowed and within the maximum number of days.
- the Salary code can help you automate how the vacation days (and their monetary impact) will appear on the payslips and the payroll reports.
- and lastly, if your organization requires more than one vacation account per employee, you can decide in the account's template whether it should be used first, last, or simply depend on how many days are left in the account balance.
Click Save and your template account is ready.
To make sure you have everything covered, check out this video:
2. Assign vacation accounts to your employees
Head over to Schedule > Vacation accounts to start assigning and attributing vacation accounts to your employees. This is also an overview page that can give you a quick insight into the standing of your employees' vacation accounts.
From the top right corner, click Create and choose whether you want to assign vacation accounts in bulk or configure them individually, per employee.
When you set up vacation accounts for your employees, you are effectively making copies of your template account and filling in the individual details. This will include:
- which date will mark the start of the accruing period (if the employee joined after the start of the accruing period in your organization, it should be set to that employee's hired date)
- make sure to take into account the Bank Holiday calendar (so your employees don't accidentally use vacation days for legal holidays).
- if you are setting this up after the accruing period and the spending period have started, there might be situations in which an employee has already accumulated vacation days or has already been on vacation for a few days. You should those details in the Start balance section.
- if you've configured the Carry over setting for the template account (see above), the carry over amount will reflect the number of days you've already allowed.
Save your changes and repeat the process as needed.
When a new accruing period will start, this will automatically be applied to the employees benefiting from a vacation account (from that template).
To make sure you have everything covered, check out this video:
3. Manage vacation requests
With the setup done and all the details in place, your employees can request vacation days, as they need/want.
This video shows how your employees will request vacation, with your setup:
You can share this video with your employees, to have all the info they need to make a vacation request.
To manage their request, go to Schedule > Vacation & Overtime requests, where you will find an overview for all vacation requests you can manage (or have already approved or denied).
Each request will contain all the information you need to make a decision on the spot on whether to approve the request or not:
- who made the request and when
- it may contain a note from your employee, explaining why they need/want the vacation days they requested.
- the status of the request (highlighting whether it's been already approved or denied by another manager in your organization, for instance)
- the vacation periods
- the effect of the request on that employee's vacation account
- a breakdown per day of the request's cost that will require your confirmation
As an example, if an employee is usually scheduled to work 3 days per week, but would like to have a vacation for a full week, you should make sure that only 3 vacation days are deducted (for the days they would have otherwise worked).
- a quick way to handle your employee's scheduled shifts, if any are overlapping with the vacation period.
When you approve or deny the request, your employee will be notified and the requested period will be marked as Vacation in your Schedule.
Here's a quick guide for managing vacation requests:
If you encounter issues or need assistance setting this up for your organization, please reach out to our support team.