The Vacation Payout modules allows companies to authorize and manage roll-over leave. The flow is as follows:
1. The company sets the maximum number of Roll-Over days allowed per year.
2. The employees indicate their roll-over preference days for the year. Employees cannot select a roll over preference higher than the Company's limit as indicated in Step #1.
3. The company processes the Vacation Payout which removes vacation days in excess of the employee's roll-over preference.
Simple and Advance Payouts
Simple Payouts - Reduces the Vacation Balance of the employee to 0 irrespective of Company Roll Over and Employee Roll Over preference. Use this option if staff currently has a roll over balance which you would like to payout or remove
Advance Payouts - Takes into consideration the maximum number of days allowed for roll over leave by the company and allows the employee's preference for roll over leave within the company's roll over limits
Example:
Company A sets 5 days as the maximum roll over days allowed
Employee John Smith, who currently has 10 unused vacation days, decides that he would like to roll over three Vacation Days into the new period. He enters three days as his preference.
Company A processes the Vacation Payout.
Calculations:
| Employee: John Smith | ||
| Vacation Leave Balance 2021 - Before Vacation Payout Processing | 10 | |
| Company-wide Limit on Vacation Leave Roll Over | -5 | |
| Vacation Leave Balance after mandatory roll over leave reduction | 5 | |
Because John only wants to roll over 3 days to the new period, 2 additional vacation days are removed | -2 | |
| Ending Vacation Leave Balance for 2021 | 3 |