What is the difference between Annual grant, Earned vacation, and Unlimited vacation? 

When configuring a vacation leave policy in Simployer One, you choose how employees receive their vacation entitlement. Simployer One supports three allowance types: 

• Annual grant  
• Earned vacation  
• Unlimited vacation  

Each allowance type calculates vacation balances differently. 

What is an Annual grant vacation policy? 

An Annual grant provides employees with a fixed number of vacation days every year. 

The balance is renewed at the beginning of each vacation cycle. 

You configure: 

• Annual allowance  
• Annual cycle month  
• Annual cycle day  

Annual grant policies can include paid or unpaid vacation days. 

What is an Unlimited vacation policy? 

An Unlimited vacation policy does not give employees a fixed vacation balance. 

Instead: 

• Employees can request unlimited vacation.  
• No vacation balance is accumulated.  
• No vacation balance is carried over.  
• No yearly allowance is granted.  

Simployer One records only the amount of vacation taken. 

What is an Earned vacation policy? 

An Earned vacation policy calculates paid vacation based on the employee's employment during the earning period. 

Simployer One uses the following calculation: 

(Days employed × Earned vacation days per year) ÷ 365 

The result is always rounded up. 

Example 

An employee: 

• Has worked 120 days  
• Is entitled to 25 vacation days per year  

Calculation: 

(120 × 25) ÷ 365 = 8.22 

The result is rounded up to 9 paid vacation days. 

Employment rate is also included when calculating earned vacation. 

Which employment types are excluded from earned vacation calculations? 

The following employment types are excluded from the earned vacation calculation: 

• Intern  
• Consultant  
• Special-fixed employment  

Employees with these employment types automatically receive unpaid vacation days instead. 

What does "Full balance available in advance" mean? 

With Full balance available in advance, employees can use the vacation they earn during the same vacation year. 

Using the previous example: 

• The employee earns 9 vacation days.  
• Those 9 days are immediately available during that year.  

This allows employees to take paid vacation before the earning year has ended. 

What does "Full balance available the year after" mean? 

With Full balance available the year after, employees earn vacation during one year and receive the balance in the following vacation year. 

Using the same example: 

• During the earning year, the employee has 0 paid vacation days.  
• The following year, the employee receives 9 paid vacation days.  

This approach separates the earning period from the vacation period. 

Which vacation allowance type should I choose? 

The correct allowance type depends on your organization's vacation policy and local legislation. 

Best practices 

Tip

Use the vacation policy templates for Norway or Sweden if they match your organization's legal requirements. 

Tip

Review how your organization manages earned vacation before choosing between Full balance available in advance and Full balance available the year after. 

Important

Changing the allowance type after employees have started using the policy may affect vacation balances. Review your configuration carefully before assigning the policy to employees. 

FAQs 

Which vacation allowance types are available?

Simployer One supports Annual grant, Earned vacation, and Unlimited vacation. 

Does earned vacation consider employment rate?

Yes. Employment rate is included in the earned vacation calculation. 

How is earned vacation calculated?

The calculation is: 

(Days employed × Earned vacation days per year) ÷ 365 

The result is always rounded up. 

Does Unlimited vacation have a vacation balance?

No. Simployer One records only the amount of vacation taken. 

Which employment types are excluded from earned vacation?

Interns, Consultants, and Special-fixed employment are excluded and automatically receive unpaid vacation days.