About the accrual rules in time off policies

This topic applies to our new time off system only.

Accrual rules schedule automatic additions to the policy’s balance. Refer to the sections below for details on specific rule options. You can assign multiple rules. They can be added to default policies in time off types, or can be added to specific policies assigned to users.

Refer to the sections below for details on specific rule options.

Select these links for information about the accrual rules, limitation rules, and validation rules in time off policies.

If you have purchased an Enterprise-level product, we can work with you to create fully customized accrual rules. Contact your Customer Success Manager for more information.

Accrual rules

Schedules automatic additions to the policy’s balance. See the table below for information about certain rules.

Rule

Description

Weekly,
Bi-weekly,
Semi-monthly,
Monthly,
Quarterly,
Semi-annual,
Yearly,
Accrual

You can choose to add accruals that occur weekly, bi-weekly, semi-monthly, monthly, quarterly, semi-annual, or yearly.

Set the following fields:

  • Yearly Entitlement - Enter the total amount the user should accrue for the whole year. This amount will be evenly distributed among the accrual periods. For example, if you enter 15 days and choose a monthly accrual period, the user will accrue 1.25 days each month.
  • On - Choose when the accrual should happen in each accrual period. If you've set the Accrual Period to Annual or Monthly, you can choose to accrue on the anniversary of the user's start date.
  • Proration - Specify whether the accrual should be prorated at the start and end of the policy, just at the start, or not at all. Proration applies when the employee works only part of an accrual period at the beginning or end of a policy. Refer to How time off accruals are prorated for more information.

See information on the On Week option in the bi-weekly rule below.

Bi-Weekly Accrual - On Week option

This type of accrual happens every two weeks. You can choose the day of the week when the accrual occurs, and which sets of weeks accruals fall within:

  • Week 1 - Accruals happen on a fixed schedule that uses July 1 to 7 2018 as a reference week – every second week thereafter is included as part of this 'week'
  • Week 2 - Accruals happen on a fixed schedule that uses July 8 to 14 2018 as a reference week – every second week thereafter is included as part of this 'week'

Choose either the Week 1 or Week 2 option if you want accruals to occur for all employees on the same schedule, or if you want to ensure accruals across policies stay in sync.

If you need to know exactly where the weeks are falling, assign the rule to a user and check their transaction history to confirm accruals are happening when you want them to.

  • 2nd after effective date (default setting) - The first accrual occurs in the second week after the policy begins. For example, if a policy starts on a Friday the 1st and accruals are set for Sundays, the first accrual would occur on Sunday the 10th.

Accruals based on hours worked or paid

 

These rules are useful, for example, if your state's legislation requires that your workers accrue 1 hour of sick time for every 30 hours worked or paid. They may also be useful for allotting time off to employees with variable schedules.

Accrued hours are only added to the employee’s time off balance once the timesheet with the hours worked or paid has been approved.

Once approved, time off hours earned in a week will be added to the employee’s time off balance on a prorated basis; for example, if an employee accrues 1 hour for 30 hours worked, and they work 40 hours in a week, 1.333 hours will be added to their balance for that week, once their timesheet is approved.

For the Accrual Based on Hours Worked rule, you'll need to:

  • Set the accrual rate
  • Include Breaks - Specify whether breaks are included in or excluded from the hours worked total. This includes all breaks, paid or unpaid.
  • Include Time Off - Specify whether time off of any kind is included in or excluded from the hours worked total

For the Accrual Based on Paid Hours rule, you'll need to:

  • Set the accrual rate
  • Exclude Pay Codes - include unpaid time pay codes, to ensure only paid hours are used in the accrual calculation

Accruals based on hours worked in a month

 

This rule accrues monthly the number of hours you define, but only if the employee has worked the number of hours you specified.

Accrual of a percentage of hours worked, in a leave year or timesheet period

 

With these rules, employees accrue a percentage of the work they complete, over the defined time period. You can define what percentage of hours worked will be accrued – this amount defaults to 8%.

Yearly accrual with expiry

 

This rule allows you to set accruals to occur on the employee's half anniversary.

You'd also use this rule if you have yearly accruals that you want to expire after a period of time that you set, and you want the option of paying out once they expire.

You'll need to set the options listed under Basic accrual rules listed above, plus:

  • Expires After - enter the duration after which the time off will expire
  • Units - select the units for the duration in the Expires After field
  • Upon Expiry - choose whether or not the expiring amount will be paid out

Accrual based on service period

This rule adds time off based on a custom field date, usually the user's start of service. Enter the name of the custom field in the Profile UDF Name field. The accrual period can be defined in years or months.

Time Off In Lieu Expiry

This rule allows you to set expiration and payout settings for hours accrued via TOIL. Only time off types tracked in hours can be set to pay out.

The Since field lets you choose when the expiration period begins.

For example, if you choose to have hours expire after 1 month, and choose Month from the Since field, hours accrued in March will expire on May 1.

Payout of TOIL hours may be required by law.

Yearly accrual with qualifying event

This accrual rule can help in countries like the Czech Republic, where an employee must work 60 days with a single employer before qualifying for annual leave.

Age Based Accrual Rule for Norway

This rule applies primarily to Norway, where where employees are allowed additional time off each year starting at age 60.

FAQs

Can a reset and an accrual occur on the same day?

Yes. If an accrual and a reset are scheduled for the same day, the reset occurs first, and then the accrual.

You might need to set up a policy like this if, for example, time off accrues monthly on the first of the month, and resets annually on January 1st.

Do resets and accruals occur on a policy's effective date?

If a reset or accrual is scheduled for the same day as the policy’s effective date, the reset and accrual will both still occur. First the initial balance is set and then the reset and accrual occur.