Vacation accrual system
constructionjill
5 Posts
We are looking at going from a traditional vacation policy (ex 2 weeks after 1 year, etc), to an accrual system, where they start accruing at time of hire.
Does anyone have a policy they can share as to wording and how they converted it over for existing employees, as well as when they start allowing new hires to use the hours.
Also, do you allow terminating ee's to be paid out at termination time if under 1 year of service.
Thanks!
Does anyone have a policy they can share as to wording and how they converted it over for existing employees, as well as when they start allowing new hires to use the hours.
Also, do you allow terminating ee's to be paid out at termination time if under 1 year of service.
Thanks!
Comments
20.1 Annual Leave
(a) Employees regularly working less than 21 hours per week do not earn annual leave.
(b) Employees who regularly work 21 or more hours per week accrue annual leave at the following rates according to length of service within the agency.
Years of Service Accrual Rate in minutes per hours paid Approximate accrued days/year
0-2.99 .0462 mins/hr 12.00 days
3-3.99 .0491 mins/hr 12.75 days
4-4.99 .0520 mins/hr 13.50 days
5-5.99 .0549 mins/hr 14.25 days
6-6.99 .0577 mins/hr 15.00 days
7-7.99 .0606 mins/hr 15.75 days
8-8.99 .0635 mins/hr 16.50 days
9-9.99 .0664 mins/hr 17.25 days
10 and over .0693 mins/hr 18.00 days
Annual leave accrues from the initial date of employment, but cannot be used until the employee has completed the first 3-month period of employment.
Annual Leave earned but not used may be accumulated to a maximum of 240 hours. Any leave accumulated in excess of 240 hours during the year will be lost unless used prior to January 1.
No annual leave will be earned during time taken as leave without pay.
Agency recognized paid holidays will not be counted as leave taken.
All annual leave must be approved in advance by Division Directors.
Terminated employees will be paid for accrued annual leave, up to a maximum of 30 days, or 240 hours.
Accrued annual leave will be paid at the employee’s rate of pay at time of termination.
Employees who work less than the first 3-month period will not be paid for annual leave.
KCR recognized the importance of annual leave. All employees are encouraged to take proper advantage of their earned leave.
For conversion I would set a date like January 1st
tell employees, and allow carry-over so no one suffers a loss. Hope this helps. Works for us.
Give employees plenty of warning - i.e. if you're going to change January 1, start talking about it in September or October.
Be prepared for lots of questions. Perhaps hold two (or more) meetings - one to introduce the idea and get questions, then another to answer all the questions you got at the first meeting. You'll probably get another round of questions at the second meeting! I drive my managers crazy by "what-if"ing, but I know that if I can think of it, so will our employees, and they'll want an answer.
The Nebraska courts are leaning towards if they can use vacation, then it should be paid out upon termination. If you go to your subscribers area and use the "Search the Subscribers Area" under HR Answer Engine, enter this title: "Vacation pay forfeiture ruling under further review" (make sure you select All States, or at least Nebraska) and that article will pop up. With stuff like this, I figure it's better to err on the side of caution, and I'd rather pay out a few hundred bucks worth of vacation than face tens of thousands of dollars worth of litigation. But again, this is Nebraska law.
After that it is accrued one year for use in the next. They do not earn it until their anniversary date so when they terminate they are paid what is on the books already.
Year 1-4 80 hours
Year 5-9 184 hours
Year 10-14 224 hours
year 15-19 240 hours
year 10+ 280 hours
After 5 years if they do not use all their time by their anniversary date they must carry over 80 hours to the next year and if there is any left after the 80 they can put the balance in thier 401K plan as follows:
5-9 years 5 days
10-14 years 10 days
15-19 years 15 days
10+ years 20 days
If you have a valid email and wish the actual policies I can send them.
Shirley
DOH-4TH ANNIVERSARY=6.67 HRS/MO
4TH-9TH ANNIVERSARY=10 HRS/MO
9TH ANNIVERSARY FORWARD=13.34 HRS/MO
FOR NEW HIRES WE PRORATE THE FIRST MONTH BASED ON # OF DAYS WORKED. AFTER THAT TIME IS APPLIED TO THEIR "ACCOUNT" ON THE 1ST OF EVERY MONTH ALONG WITH EVERYONE ELSE. EMPLOYEES CAN USE IT IMMEDIATELY OR LET IT ACCUMULATE. IT CAN BE CARRIED OVER FOR TWO YEARS AFTER THE EMPLOYEE'S ANNIVERSARY DATE.
FOR EMPLOYEES ALREADY ON BOARD ON MARCH 1 WHEN WE IMPLEMENTED THE PLAN WE APPLIED THE AMOUNT OF VACATION ALREADY ACCRUED UP TO THAT POINT AND THEN JUST BEGAN ADDING THE PER MONTH AMOUNT AFTER THAT. FOR EXAMPLE, IF THE ANN. DOH IS IN OCT AND THE EMPLOYEE HAS BEEN THERE FOR 6 YEARS ON THEIR LAST ANNIVERSARY, WE APPLIED 60 HOURS (OCT-MAR)TO THEIR VAC ACCOUNT AND THEN 10 HOURS EVERY MO THEREAFTER.
IF AN EMPLOYEE QUITS, THEY HAVE WORKED AT LEAST 7 MONTHS,THEY GIVE TWO WEEKS NOTICE AND WORK THE ENTIRE TWO WEEKS WITH NO TIME MISSED WE PAY THEM FOR ANY VAC LEFT IN THEIR ACCT. OTHERWISE IT IS FORFEITED.
OUR EMPLOYEES LOVE IT. WE HAVE SOME WHO LET THE TIME ACCUMULATE AND OTHERS WHO USE IT AS SOON AS THEY GET IT EVEN THOUGH I CAUTION THEM ABOUT BUDGETING THEIR TIME OFF. HOWEVER IT IS THEIR OPTION. GOOD LUCK!
All regular full-time employees receive annual leave credit on a monthly basis for each calendar month, in accordance with the applicable schedule hereinafter set forth. Employees appointed to service after the first day of the month receive leave credit on a prorated basis. Annual Leave accrues as follows:
Service--Annl Accr.--Max Accrual
Years--Days/Hours--Days/Hours
0-5 --10/80-- 20/160
5-10 --12.5/100-- 25/200
10-15--15/120-- 30/240
15+ --20/160-- 40/320
Annual leave is not accrued beyond the Maximum Accrual for the length of service. Employees have twelve (12) months from the adoption of this policy to use Accrued Annual Leave in excess of the Maximum Accrual for their length of service. Hours not used by March 15, 2006 (twelve (12) months from the adoption of this policy) are forfeited.
During the first six months of employment, a new employee accrues, but is not granted, any paid annual leave. An employee whose employment is terminated for any reason during the first six months of employment is not paid for any accrued vacation leave.
Upon resignation or retirement, CHA pays the employee for the accrued Annual Leave up to the Maximum Annual Accrual amount. Employees involuntarily terminated for gross misconduct do not receive payment for accrued leave.
0-1 yr - 2 hours vacation/ 4 hours sick
1-5 yr - 3 hours vacation/ 4 hours sick
5-10 yr - 4 hours vacation/ 4 hours sick
10-15 yr - 4.62 hours vacation/4 hours sick
15- 6.15 hours vacation/ 4 hours sick
As long as an employee has the hours built up, they can use them anytime. If they need to only take 2 hours for a doctors appt, etc or an afternoon for some leisure time this method works well. If an employee leaves and gives 2 weeks notice, they get paid for the banked vacation time - up to 160 hours (which is the limit they can bank). If (on Jan 1) they have not used accum leave and it has summed to over 160 hours, the excess is converted over to sick leave. The only time an employee can be paid out for sick leave when they leave is when they retire. Then there is a cap amount of $2500.
Hope this helps.
If I were converting, I would convert the leave balances they have over to hours to save confusion.