Overview

Allowance entitlement can be set in two ways:

  1. An Annual Allowance that is calculated and prorated based on the cycle the employee is assigned to. This is typically used for the following scenarios:

  • Full time employees where the policy is tracked in Days or in Hours.

  • When the entitlement is calculated based on predefined time off regulations, where the amount of annual allowance is given based on the employee's seniority (years of service) and a set of restrictions, such as proration limitations of the amount when the employee does not work for the whole cycle (when he is terminated or when he is assigned to the policy in the middle of the cycle).

  • The amount will be either given in advance (annual grant) or will be earned progressively based on the type of the cycle.

2. Accumulate hours by hours worked: this mode calculates the allowance entitlement based on the hours the employee reported in the T&A (and that were approved by the Manager). This method is typically used when:

  • The employee is a part time employee and therefore the total allowance may fluctuate based on the hours worked for a given attendance cycle.

  • When the allowance is tracked in hours

  • The allowance will be accrued based on a ration between approved hours that were reported in T&A to a 1 hour of time off accrual.

Target audience

Admins

Prerequisites

  1. T&A module is enabled where employees actively report attendance.

  2. The policy (to which hours worked are converted to time off accrual) is set to Hours.

Please note: customers who do not have T&A enabled, will not be able to convert their hours worked to time off. We do not have, at this point, an option to simply pass total hours worked (for a given date range) and convert it to time off.

Benefits of setting a policy to 'Accumulate hours by hours worked'

  1. Control your part time employee's allowance entitlement - you earn time off based on the hours you worked.

  2. Limit the amount of hours worked that can be converted to time off by setting an accrual limit.

Setup and implementation

See also the help articles on setting policy type and policies.

Please note: If the policy type is tracked in days only (say "Vacation") then in order to support this calculation method, you will need first need to create another policy type (say "Vacation hours") where the unit is set to "hours" and then create a policy for this new policy type.

For a customer whose Holiday/Vacation policy type is set to HOURS, create a new policy (called “Holiday/ Vacation by Hours Worked”).

  1. Click the "New Policy" button from the Time off settings > Policies tab.

  2. In the wizard that opens, in the first step "Details", select the policy type that is tracked in hours. An indication whether the policy type is in hours will show under the "Unit" field.

  3. Assign this policy with a distinct name

  4. Make sure that balance tracking is set to "Balance is tracked".

5. Set a time off cycle that will serve as a time frame to the amount of hours that will be accumulated based on the hours worked and will be converted to time off. You can either select an existing cycle or create a new cycle

Please note: we recommend that the cycle that is selected/created will correspond with the attendance cycle that was because if you wish that the hours worked, that are worked are converted to time off, are applicable to a given time off cycle, it makes sense that two work in tandem (see examples below).

6. In the Allowance tab, in the "Allowance Entitlement" section, select "Hours by Hours worked".

7. Set the "Hours worked to accrual ratio" with the total amount of hours worked that will be converted to 1 hour of time off accrual.

Example: if 30 hours is set, then if the employee worked for 90 hours on a given T&A cycle, provided that this is approved by the manager, the employee will get 3 hours accrual.

8. You can further limit the total amount of hours that can be converted to a time off accrual for a given cycle using the "Max. accrual per cycle (hours)". Once set, if the employee the amount to be converted using the "Hours worked to accrual ratio" exceed this value, the accrual will be trimmed, accordingly.

Example: if 30 hours were set in the "Hours worked to accrual ratio" and 10 hours were set in the "Max. accrual per cycle (hours)", then if the employee worked for more than 150 hours on a given cycle, the employee will still only get 5 hours of accrual (150/30 = 5).

Please note: some of the additional allowance restrictions in this screen (such as proration and years of service) are not applicable to the "Hours by hours worked" calculation mode, and will be disabled.

Assigning employee to Hours by Hours Worked

Just like any other TO policy, assigning an employee to a policy (or a group of employees to a policy) will follow the same logic.

  1. Select from the combo box a Vacation policy that is calculated by hours worked you wish to assign the employee/s to.

2. “Select Effective Date”:

IMPORTANT: Since the system cannot automatically calculate past closed attendance cycles for a given time off cycle, the date set in the effective date will check all cycles that will be closed from this assignment date and convert the total hours worked to time off.

3. When it comes to the timing of assigning an employee to a “by hours worked policy” we suggest that the effective date will match the last attendance cycle’s cutoff (closing date delay) end date, so that the generation of accrual will be as accurate as possible.

Example:

  • An employee is assigned to a monthly attendance cycle (where each cycle runs from 25th to the 24th) with 5 days of cutoff.

  • Time off cycle for the policy to which hours worked are converted to time off accrual is an Annual cycle (Jan - December).

Suggested solution:

If today it is 17/11, do not assign the employee to the policy as of “today”, but via the date picker, assign the employee to 29/11 (that is 5 days after the current cycle ends) .

When it comes to previous closed cycles, it is better to create a manual adjustment (balance adjustment) for past attendance cycles.

4. Attendance records that will be calculated and converted to TO, will apply only to approved timesheets.

  • Attendance cycles that are not approved, will not be calculated for TO accrual calculation based on hours worked.

5. Can we still convert hours worked for past (locked) attendance cycle?

Yes: there is an option to run a script (DEV will run it for you) that will allow converting, for a given set of employees, the total hours worked for closed T&A cycles based on a date range. Basically, the script will “re-approve” the closed timesheets that will trigger a conversion of hours worked to time off.

To calculate hours worked for past (locked attendance cycles), please reach Customer support team which will run a script that will do the following:

  • Provide the list employees to whose past attendance cycles need to be recalculated (please provide a list of employee ID’s)

  • Provide a date range in which all closed cycles will be recalculated

Conversion of hours worked to time off

Conversion of hours worked to time off will be calculated in the following manner:

  1. For a given time off cycle, the total worked hours that will be converted to Time Off will pertain to any T&A cycle closed within this time off cycle.

2. Only the attendance cycles that were approved by the manager (that the timesheet was approved by the manager) will be converted to Time Off.

Scenarios

Example 1: a scenario when the Time Off cycle and Attendance cycle overlap.

  • Monthly Time Off cycles (25th to the following 24th)

  • Monthly Attendance Cycle (25th to the following 24th)

  • Attendance cycle cutoff is set to 5 days

  • TO cycle cutoff is set to 5 days.

  • For every 20 hours worked employee gets 1 hour accrual

  1. For the TO cycle that ends on 24/10 (29/10 including cutoff), there is one attendance cycle that ends in this interval on 24/10 (the same date).

  2. So the vacation hours accumulated will be with respect to hours worked on the attendance cycle of 25/09 - 24/10.

  3. In the example below the employee worked for 40 hours, so by 24/10 he should see an accrual of 2 hours in his Time Off screen.

  4. Due to the Attendance cutoff of 5 days, up to 29/10 the records will be editable and so the “final” amount will only be available when the timesheet is locked (29/10).

  5. Due to the TO cutoff of 5 days, up to 29/10, the user will be able to request TO for days from 25/09 - 25/10. Since the updated vacation balance (conversion) will be available on 29/10, the deduction should function properly

Example 2: Time off cycle and Attendance cycles that do not overlap.

  • Monthly Time off cycles (Period is 1st - end of month)

  • Monthly Attendance Cycle (25th to the following 24th.)

  • Attendance cycle cuoff is set to 5 days

  • Time off cycle cutoff is set to 5 days.

  • For every 20 hours worked employee gets 1 TO hour

  1. For the TO cycle that ends on 31/10 (5/11 including cutoff), there is one attendance cycle that ends in this interval on 24/10.

  2. So the vacation hours accumulated will be with respect to hours worked on the attendance cycle of 25/09 - 24/10.

  3. In the example below the employee worked for 40 hours, so by 31/10 he should see an accrual of 2 hours in his Time Off screen.

  4. Due to the Attendance cutoff of 5 days, up to 29/10 the records will be editable and so the “final” amount will only be available when the timesheet is locked (29/10).

  5. Due to the TO cutoff of 5 days, up to 05/11, the user will be able to request TO for days from 1/10 - 31/10. Since the updated vacation balance (conversion) will be available on 29/10, the deduction should function properly.

Example 3: Time off cycle and Attendance cycles do not overlap (time off cycle is Annual Cycle)

  • Annual TO cycles (Activity period Jan - Dec).

  • Monthly Attendance Cycle (25th to the following 24th.)

  • Attendance cycle warzone is set to 5 days

  • Time off cycle warzone is set to 10 days.

  • For every 20 hours worked employee gets 1 TO hour

  1. For the TO cycle that ends on 31/12/2019 (10/1/2020 including cutoff), there are 12 attendance cycles where each cycle ends on the 24th.

  2. So the vacation hours accumulated will be with respect to hours worked on the attendance in all 12 cycles (from the cycle that ends on 24/01/2019 to 24/12/2020

  3. In the example below the employee worked throughout the year 502 hours, so by EOY he should see an accrual of 25.1 hours in his Time Off screen.

  4. Although the TO cycle is Annual, just like “with monthly accrual” it will show an up to date balance and deductions updated along the year.

Example 4: More than one attendance cycle closed within a given Time off cycle.

  • Monthly TO cycles (Period is 1st - end of month)

  • Bi-Weekly Attendance Cycle: for 01/10 - 31/10 there are two attendance cycles

  • Attendance cycle cutoff is set to 2 days

  • Time off cycle cutoff is set to 5 days.

  • For every 20 hours worked employee gets 1 TO hour

  1. For the TO cycle that ends on 31/10 (5/11 including cutoff), there are two attendance cycle that end in this TO cycle, so the accrual that will be generated by the end of the TO cycle will include all hours worked for the two cycles (from 24/09 - 21/10).

  2. In the example below the employee worked for 22 hours in attendance cycle that ends on 08/10 and 26 hours by the attendance cycle that ends on 21/10. so by 31/10 he should see an accrual of 1.1 + 1.4 hours = a total of 2.5 vacation hours.

  3. Due to the Attendance cutoff of 2 days, up to 11/10 the records will be editable for the first attendance cycle and up to 24/10 for the second cycle, and so the “final” amount will be shown only after the second attendance cycle is closed.

  4. Due to the TO cutoff of 5 days, up to 05/11, the user will be able to request TO for days from 1/10 - 31/1

Reflecting Hours Worked converted to Time Off

Once, for a given time off cycle, timesheet/s are closed (and approved), the total hours worked will be converted into a time off accrual.

Let’s see a detailed scenario:

Employee Cathy Richards belongs to a site whose both time off and attendance cycles are Weekly.

  1. Cathy reviews her timesheet for the previous attendance cycle 06/01/2020 - 12/01/2020.

  2. Total hours worked for this week is 36 hours.

  3. Since this attendance cycle is not locked yet (as of 13/01/2020 - because of 3 days of cut off), she can click the “Submit Timesheet” button to have the timesheet approved by the manager.

4. The Manager logs in, goes to the timesheets screen and approves Cathy’s timesheet.

5. Once the manager approves the timesheet, all the hours worked (in this case 36.00 hrs) will be converted into a time off accrual.

Since the Vacation Policy Cathy is assigned to has an “Allowance calculation mode” set to “by hours worked”, with a 40 hours to 1 time off accrual ratio

Cathy will be getting less than 1 hour of accrual (36/40 = 0.9 hours).

6. When Cathy navigates to My Time Off screen, she will see (when expanding the “Vacation Hours” tile, the 0.9 converted for the attendance cycle of 6/01/2020 - 12/01/2020

Note: the reason it shows “Current Cycle” as 13/01/2020 - 19/01/2020 and not the previous cycle is because this label refers to the Time Off Cycle. Since the last working day of the previous attendance cycle is 12/01/2020, the cycle actually end on 13/01 which is part of the “current time of cycle”.

7. When clicking the “Balance Activity”, you will see more details about the hours converted and the attendance period it refers to.

  • “Hours Accrued” transaction will show the attendance cycle where the total hours were accumulated and converted to time off

  • The “Hours Added” - will show the amount of hours worked that were converted into time off.

  • Hovering on “Hours Added” will show more details.

Reports

The go to report that will show employees accumulated hours based on hours work is “Time Off Balance Summary Export” .

Please note: the report was not modified in any way so as a time off report it does not show the total hours worked (that was converted to a time off accrual) but only the converted value.

See example below with total hours converted as Vacation Hours from 01/01/2020 - 15/01/2020


Did this answer your question?