Common Practices of Vacation Accrual Rules

Accruing vacation time

  1. Accrual period. Employees of most companies accrue vacation days monthly, but weekly and yearly intervals are also possible. Daily leave time accrual can be an option in companies with higher turnover rates.
  2. Equal or progressive leave time amounts. Leave time can be accrued in equal amounts every year or progressively — depending on the years of employment.
  3. A waiting period can be designated before the vacation begins to accrue; depending on applicable legislation, it can take from three months to one year.
  4. Two different balances, one for vacation days and one for sick days. They should be tracked separately; with that said, other leave types can exist that don’t affect either of these two balances.
  5. Using balance cap. If employees are reluctant to spend their time off, companies often choose to introduce a balance limit to keep the overall amount of available leave time within a reasonable range. In this case, it is important to follow the legal guidelines and regulations that indicate the reasonable proportion of the balance cap.
  6. Overwork bonuses and time off in lieu. Some employers prefer to compensate their employees’ overtime by adding hours or days to their leave balances.
  7. Different leave time amounts, for example for full-time and part-time employees, or for managers and regular employees.

Spending vacation time

Automating vacation accrual

  • Flexibility;
  • Simple leave tracking procedure;
  • Availability from any device;
  • Rich data review options.

Easy vacation accrual with actiPLANS




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