How to Set Up a Vacation Policy in Simployer One

What is a vacation policy in Simployer One?

A vacation policy controls how employees receive, use, and carry over vacation in Simployer One.

You can create a vacation policy from scratch, or start from an editable country template for Norway or Sweden.

Important: Only an Owner or Administrator can create, edit, or delete a vacation policy.

How do I create a vacation policy?

Follow these steps to create a new vacation policy in Simployer One:

1. Go to Settings > Time off settings.
2. Find Vacation and click View.
3. Click New policy.
4. Choose whether to create a custom policy or use a template.
5. Complete the policy details, allowance type, availability, carry over, and scope.
6. Click Save.

Important: The vacation policy becomes available to employees immediately when you save it with a scope.

Which allowance type should I use for a vacation policy?

When you create a vacation policy in Simployer One, choose one of three allowance types:

• Earned: Calculates paid vacation based on the number of days the employee has been employed during the earning period and the employee's employment rate.
• Unlimited: Gives the employee an unlimited number of vacation days. Simployer One records spent vacation but does not refill, save, or remove a balance.
• Annual: Gives the employee a fixed amount of paid or unpaid vacation days each year.

How does an Earned vacation policy calculate paid days?

For an Earned vacation policy, you set the number of days an employee can earn per year. Simployer One calculates paid vacation days using this formula:

(Number of days employed during the period × Earned days per year) / 365

For example, an employee who has been employed for 120 days and can earn 25 vacation days per year receives:

(120 × 25) / 365 = 8.22, rounded up to 9 days

Simployer One always rounds the calculated number of earned vacation days up. The calculation also takes the employee's employment rate into account.

Which settings do I configure for an Earned vacation policy?

When you choose the Earned allowance type for a vacation policy, configure these settings:

• Days earned per year: Set how many vacation days an employee can earn during a full earning year.
• Annual cycle month and day: Choose the month and day that define the annual vacation cycle.
• Balance availability: Choose whether the earned balance is available in advance or in the following year.

How does an Unlimited vacation policy work?

An Unlimited vacation policy does not give employees a fixed vacation balance. Employees can request an unlimited number of vacation days. Simployer One records the number of spent vacation days, but the balance is never refilled, saved, or removed.

How does an Annual vacation policy work?

An Annual vacation policy gives employees a fixed amount of paid or unpaid vacation days every year. When you use this allowance type, configure the annual allowance amount and the date on which Simployer One grants it.

How do availability settings work for a vacation policy?

Availability settings in a vacation policy control:

• Allowance amount: How many days are included in the vacation allowance.
• Grant date: The month and day on which Simployer One grants the allowance.
• Strict allowance:Whether an employee can request more vacation than their available balance.
  • Strict allowance enabled: The employee cannot request more days than the available vacation balance.
  • Strict allowance disabled: The employee can request more days than the available balance, which can create a negative vacation balance.

How does carry over work for a vacation policy?

The carry over setting in a vacation policy controls the maximum number of unused vacation days an employee can move into the next vacation year. Simployer One removes unused days above the carry over limit.

Example: An employee has 12 unused vacation days and the carry over limit is 10 days. Simployer One carries over 10 days and removes 2 days for the next vacation year.

Which vacation policy templates are available?

Simployer One provides these vacation policy templates:

• Vacation Norway: A pre-populated vacation policy template for Norway.
• Vacation Sweden: A pre-populated vacation policy template for Sweden.

Note: These templates contain default settings. An Owner or Administrator can edit the settings before saving the vacation policy.

How do I scope a vacation policy?

When you configure a vacation policy, choose who it applies to. You can select Everyone at the company, or include selected individuals, teams, offices, employment types, departments, or organizations. You can also exclude specific employees from the vacation policy scope.

Note: Vacation policy scope is inclusive. If you include a department and a team, the policy applies to everyone in the department and everyone in the team.