Leave entitlement based on actual costing

You can determine each employee's periodical leave entitlement based on the timetable. This method works great for employees who work according to a fixed timetable, for example with fixed working times or a specific number of hours per week. However, for employees with irregular working times, Profit can determine the periodical entitlement based on the number of hours entered in the actual costing.

Description

For this procedure you need Profit HR and Profit Projecten.

CLA/term of employment

Profit determines the periodical entitlement per leave type based on the timetable (HR) or the actual costing (projects). This depends on the settings of the leave type. If your organisation uses both methods, you must use separate terms of employment.

Example: 

The organisation has office employees and a field organisation that has irregular working hours.

  • Office employees

    The office employees are subject to the CLA/term of employment called 'Office', which has the Holiday and WTR leave types. Profit determines the periodical entitlement for these leave types based on the timetable.

  • Field organisation

    The field organisation is subject to the CLA/term of employment called 'Field', which has the Holiday leave type. Profit determines the periodical entitlement for this leave type based on the actual costing.

Calculate the periodical entitlement

For each leave type, there is a basic leave entitlement in hours. This is the leave entitlement for the entire leave period for a full-time employment. If Profit determines the leave entitlement based on actual costing, the periodical entitlement is determined based on the actual number of hours entered.

Periodical entitlement = (Hours in actual costing / Workable hours in leave period) * Basic leave entitlement (CLA)

Example: 

The full-time holiday entitlement is 200 hours (25 days) per year A full-time employee works 2080 hours per year.

If the employee has entered 156 hours in the actual costing, Profit updates the leave entitlement based on the following calculation:

Holidays: 156 / 2,080 x 200 = 15 hours.

Configure hour types and leave types

You configure the actual costing using hour types and leave types:

  • Hour types

    You specify per hour type whether it entitles the employee to leave: only these hour types contribute to the total 'Actual costing hours' and lead to an increase in the leave entitlement. For all hours that are related to work activities this will be the case, but not for the 'Travel time' hour type, for example.

  • Leave types

    You specify per leave type whether Profit should determine the periodical entitlement based on the project actual costing.

In the example the 'Absence' hour type is included in the calculation of the periodical entitlement for the leave types. However, in the leave types you can distinguish between, for example, WTR and holidays. That is because absence hours are allowed to be included in the 'Holiday' leave type but not in 'WTR'. In other words: in the case of absence, the employee does accrue holiday entitlement but not WTR entitlement.

Procedure
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