Rounding at the end of the accrual period
What is it for?
Rounding at the end of the accrual period provides for the possibility of assigning all of their entitlements to employees who were only partially present during the accrual period. This partial presence can be because the employee joined or left the company during the accrual period or because of an absence that impacted their leave entitlements, such as unpaid leave. The rounding means that the employees’ balance is always an applicable number, meaning that the amount is rounded to a number of half or full days.
What are the possible values for the rounding?
This rounding is set up in the accrual rule and there are three possible values: Next whole number, Next half number or Closest half number. The form also allows no rounding to be applied to the rule.
For example: Paul is eligible for 12 comp days annually, but he leaves the company during the year and has only accrued 7.24 days.
- Without rounding, he could book his 7 comp days and be paid for 0.24 days since he can’t book 0.24 days’ leave.
- With rounding to the next whole number, he would be entitled to 8 comp days.
- With rounding to the next half number, he would be entitled to 7.5 comp days.
- With rounding to the preceding half number, he would be entitled to 7 comp days.
Is rounding mandatory?
For French paid leave, rounding to the next whole number is required by the Labor Code.
“When the number of leave days accrued is not a whole number, the leave duration is considered as the next whole number” (service-public.fr)
For comp days in France, rounding depends on the company’s agreement, and generally the number of comp days is rounded to the next half number.
Nevertheless, it is still possible to chose not to apply rounding: this is your choice, but we do not recommend it.
How to set up rounding at the end of the accrual period.
Rounding at the end of the accrual period is linked to the accrual rule, and so it is set up in the form of the rule in which it features. It is offered for all accrual rules and can be modified.
Path to the setting: Regulation > Accrual > “Rule name”
The adjustment rules use the type of rounding cited in the accrual rule associated with the employee’s accrual profile.
For example: Paul is credited by a 25 PL rule with rounding to the next whole number. When Paul’s paid leave is adjusted, the rounding that will be triggered following the adjustment will be to the next whole number since this is the type of rounding defined in the rule that credits his paid leave.
Calculating rounding at the end of the period
When is the rounding calculated?
- For an annual amount distributed monthly, the rounding is calculated:
- in the last month of the accrual period of the account linked to the rule (for example the month of May for a June-to-May accrual)
- in the month the employee leaves the company
- For an annual amount credited at the start of the accrual period, the rounding is calculated:
- if the employee leaves the company during the accrual period
- following an adjustment executed on the account
Which amount is rounded: the entitlement or the balance?
Let's take the example of an employee who is present throughout the year and who has taken a half-day of leave in advance:
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at the end of April, the employee has accrued 11 * 2.08, i.e. 22.88 days, and is credited with 2.08 in May, i.e. 24.96 days
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they have already taken 0.5 days of paid leave, so the balance is 24.46 days
If you apply rounding to the accrued entitlement, then you will round 24.96 to 25 days (the rounding credit is 25-24.96 = 0.04).
If you apply rounding to the balance, then you will also round 24.46 to 25 days when they have already taken 0.5 days (the rounding credit is 25-24.46 = 0.54).
We can therefore see here that with a rounding rule applied to the balance, the employee is credited with 0.5 days corresponding to the half-day already taken.
Which accounting entries are taken into account when calculating the rounded value?
FAQs
Paul is entitled to 25 paid leave days per year, he is credited 2.08 PL per month, except in the last month of the accrual period when he is credited 2.12. Why is this?
For the rules defined annually with monthly crediting, the last amount credited in the accrual period cannot be the same as for the rest of the period. The last amount credited is increased slightly so as to obtain the total amount of entitlements when the 12 credits in the period are cumulated. This means that, in order to obtain the monthly amount to credit, Lucca Absences divides the total amount by the number of months in the year and rounds the result to two decimal places. The sum of the 12 credits is only equal to the total amount when it can be divided by 12 exactly, which is rarely the case.
The only rules concerned by this additional credit are those defined annually with monthly credit.
For example: Accrual of 25 paid leave days allocated every month.
Paul is entitled to 25 days per year distributed as follows:
- 25 / 12 = 2.083333, i.e. 2.08 to be credited each month for 11 months.
- 2.12 in the last month because 2.08 x 12 = 24.96. We then complete the accrual of the last month of the accrual period to obtain a credit of 25 days over the accrual period (25 - 24.96 = 0.04 which is added to the monthly accrual of 2.08 = 2.12).