Adjust accrued entitlements for absences

Before getting started

If an employee is absent for certain reasons, their accrual may be reduced. For example:

• suspension of paid leave accrual in the event of parental leave or unpaid leave
• no comp days for absences due to illness, maternity, etc.

The adjustment module allows you to configure and automate these rules. Here you will find typical examples of rules that can be implemented.

Set up an adjustment rule

Adjustment rules are configured in Settings > Regulations, Adjustment tab.

You can access two types of adjustment rules by clicking on "Create a rule":

• Prorated adjustment --> recalculation of accrued entitlements on a pro rata basis according to the employee's attendance, possibly after a certain absence duration
• Block adjustment --> adjustment of entitlement by deducting a fixed amount for each block of X days of absence

Description of an adjustment rule

1. Name: name of the rule, so that you can find it in the execution tracking interface

2. Calculation of entitlements

• Account to be adjusted: account for which you want to suspend or reduce the accruals
• Pro rata calculation settings:
  • Adjustment method: select which unit leave and working days should be accounted in, for the calculation of the attendance rate (public holidays are deducted as business and working days, but these are accounted for as calendar days)
  • Calculation basis for accrual and attendance rates - there are 3 main options :
    • The option Current Month adjusts the accrual of each month (e.g. 2.08 paid leave worked). The recommendation is "current month" to be as close as possible to the calculation made in payroll.
    • The option From the beginning of the accrual adjusts the accrual accumulation, from the start of the accrual to the end of the execution month 
    • The option Full accrual period allows the calculation to be performed over the full accrual period of the account, which is generally useful for full credit accounts
• Settings for calculation by block 
  • Debit per block: fixed amount to be withdrawn for each absence block
  • Block (and unit): number of absence days (working or calendar days) reducing the accrual of the entered amount
  • Calculation basis for accrued entitlements and days of absence - there are 3 main options
    
    • The option Since the beginning of the accrual searches for the number of whole blocks of absence days, counting absences from the start of the accrual to the end of the execution month. This is recommended so that absences overlapping several months can be included. Example: with a debit of 0.12 for every block of 5 absence days, if the user has 3 absence days in March and 2 absence days in April, then they will be debited 0.12 for the April execution.
    • The option Current Month searches for whole blocks of absences for each month. Example: with a debit of 0.12 for each block 5 absence days, if the user has 3 days in March and 2 absence days in April, they will not be debited in either March or April. Only when the number of absences in a month reaches or exceeds 5 will it be debited.
    • The “Full accrual period” option lets you carry out the calculation over the full accrual period for the account, which is generally of use for full credit accounts

3. Absences that affect accruals

• Accounts that affect accruals: you need to select the types of absence that affect accruals, i.e., absences to be taken into account when defining the employee’s attendance rate and pro rating their accruals.

In most cases, the adjustment method is in business days. Please contact your payroll manager to check whether the calculation for sick leave should be done in calendar days and, if that is the case, two separate rules will need to be created: one for sick leave and one for other absences.

• Advanced threshold and limit options :
  • If the adjustment takes place from the first day, there is no threshold.
  • If, for example, the adjustment only takes place after one month of absence a threshold must be entered.
  • In rare cases, adjustment stops when the number of absence days exceeds a limit (e.g. 3 months). Once the limit has been exceeded, the employee starts acquiring days again, even though they are still absent.

4. Population: employees affected by this rule; you need to select at least one profile and you can add extra filters for each occupation category or for each establishment.

5. Execution of calculation: We recommend enabling the automation; the adjustment rules will be applied just after the accrual credit for the account.

Otherwise, you will have to run the rules manually from the Credit/Debit module.

Settings illustration

Adjustment of Paid Leave with immediate effect

Requirement: suspend accrual in the event of unpaid leave or parental leave (business days).

Recommendation: create a rule for prorating the accrual, in business days, for the concerned absences. In this case, there is no threshold.

Adjustment of Paid Leave after 3 months of absence

Requirement: retain paid leave accrual for the first 3 months of absence due to illness (calendar days), and adjust only for the following days.

Recommendation: introduce a proration rule based on calendar days, with a threshold of 90 days.

Please note: If the adjustment method is in business days, you’ll need to enter the threshold in business days, i.e., 60 days for 3 months.

Immediate pro rata adjustment of comp days

Requirement: reduce comp days entitlement for absences

Recommendation: create a rule for prorating comp days on business days, by adding all absence accounts. In general, maternity has an impact on comp days, but not on paid leave.

Comp day adjustment by block 

Requirement: reduce comp day entitlement by 0.5 only for every 10 days of absence

Recommendation: create an adjustment rule per block, with a block of 10 and a debit of 0.5. If you have different comp day amounts for different profiles, you will definitely need to create a rule per profile (separate comp day value) so that the debit amount per block is adapted. 

Executing an adjustment rule

Adjustment rules are tracked and executed in Credit/Debit > Accrual > Adjustment. This requires the rules to be defined in advance, as described above.

You will find a month-by-month list of rules scheduled for execution that month. "Auto" rules will be executed on the scheduled date, while "Manual" rules require you to run them using the "Execute" button.

When you click on the "Execute" button, a simulation table is displayed, summarizing the main information and the suggested adjustment. This value can be changed before saving.

Important: the simulation table is based on credits already issued. It is not possible to simulate a calculation before the month's credits have been applied.

By clicking on a row in the simulation table, you can access the details of the calculation performed: absence days taken into account, accrual of the period, attendance rate, etc.

The rule can be restarted.

Accessing the execution history of an adjustment rule

When a rule has been executed, the execution date is updated, and a green tick is displayed. You can then access the execution history, and the report for each execution by clicking on the row.

Advanced rules not configurable in Timmi Absences

Some calculations of accrued entitlements cannot be configured in Timmi Absences, particularly if they involve seniority, hourly rates or other contractual information not entered in Timmi Absences.

If your payroll allows you to manage a more detailed accrual, you can import the payroll accrual into Timmi Absences using the payroll comparison module.