Configure statutory and non-statutory (composite) leave

You have the employees' statutory and non-statutory leave entered on a composed leave type after which Profit will change the balance of the just linked leave types.

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Description

According to the law, an employee accrues a leave entitlement. The entitlement is divided into statutory and non-statutory leave. The following legal regulations (from which deviations per CLA are possible) apply:

  • Statutory holidays:

    Employees are obliged to use up their statutory holidays within 6 months after the end of the year of accrual. After this time the holidays will expire.

  • Non-statutory holidays

    It is mandatory for employees to take their non-statutory holidays within 5 years after the year of accrual. After this time the holidays will expire.

You configure Profit in such a way that the employee enters his or her leave on one (composite) leave type after which Profit enters the statutory and/or non-statutory leave in the correct way. By using a composite leave type, you will avoid questions from employees who do not know what the statutory and non-statutory terms mean.

In InSite, it is only possible for an employee to use the composite leave type. In exceptional cases, you can still make entries on the linked, individual leave types in Profit Windows.

Note: 

Composite leave can only be used if the leave period table is based on 'Year'.

If you want to use statutory and non-statutory leave through composite leave entries, we advise you to do so as from 1 January of the coming year. This will ensure you can prevent possible recalculations and employees will be clear about the starting point.

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Alternative configuration of non-statutory leave

Expired balances

Description

The procedure for configuring the statutory holidays is as follows:

Example:

An employee enters employment on 1 January and has a full-time contract. Every year the employee is entitled to 26 holidays (208 hours). Within the context of the legislation on statutory holidays as from 2012, this annual entitlement on 1 January is broken down into 20 statutory holidays (160 hours) and 6 non-statutory holidays (48 hours).

  • Statutory holidays

    As from 1 January, employees are obliged to use up their statutory holidays within 6 months of the end of the year of accrual. After this time the holidays will expire. For each leave year, you add a new leave type in Profit for the statutory holidays.

  • Non-statutory holidays

    It is mandatory for employees to take their non-statutory holidays within 5 years after the year of accrual. After this time the holidays will expire. In Profit, you add a leave year to the existing leave type for the non-statutory holidays.

Broken leave year

If there is a broken leave year, you change the configuration in the same way as if there was no broken leave year. Because Profit can determine the leave balance on a pro-rata basis, you do not need to process a broken leave year any differently. Making the record in question effective at the CLA/term of employment level as of 1 January ensures that Profit automatically assigns leave balances pro rata.

The configuration also works excellently if you use a different period table than 'Year'. For example, to work with 6 months or 1 month, make sure to specify a basic entitlement pro rata.

Why would you continue to work with the hitherto used leave type for the non-statutory part?

This way you avoid having to transfer all of the remaining leave balances on 31 December to a new leave type. The limitation period of all the current leave remains 5 years (so is equal to the future non-statutory part). Naturally, if you want, you can nonetheless decide to introduce a new leave type for the non-statutory part. By exporting the remaining leave balances as of 31 December and importing them as a leave balance correction to the new leave type, you can transfer the balance of all employees.

So you do not add a completely new leave type, but a new leave line with the same settings. As the start date you specify 1 January so that the old line ends on 31 December.

Remaining balances after 30 June

The remaining balances after 30 June of the following year can be processed as follows:

  • You can set the balance to 0 using a leave balance correction. This procedure disadvantages the employee.
  • You can apply two leave balance corrections to convert the balance to a transferable leave type. If necessary, you can extend the Reason for leave adjustment table with a new reason.

Ongoing leave request after 30 June

If an employee has submitted a leave request in a workflow but the manager has not yet completed it, it can be completed after the end date of the leave type has lapsed.

Example:

An employee has requested leave of the leave type statutory holidays. The manager can still complete this request in the workflow after the end date of the leave type (30 June).

Procedure
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