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Changing Vacation from Calendar to Anniversary Date

Our company is in the process of looking at changing vacation time from a Calendar date (July to June) to the employee’s anniversary date. When doing this, would it be best to pick a conversion date so that when calculating carryovers, there is one conversion date for all employees? Also, would you calculate the carryover by taking the prorated unused portion of vacation time from July 1st to the conversion date or their anniversary date?

It’s more common for employers to switch to the calendar year method, so it would be interesting to know you’re reasoning for switching to the employees’ anniversary dates. Most employers find using the anniversary date to be an administrative burden since you’re constantly monitoring each employee’s date.

Yes, it’s best to select a conversion date. The calculation would be based on the prorated time from the conversion date to the anniversary date.

For example, effective January 1, 2016 vacation will accrue based on employees’ anniversary dates. Since employees have already started accruing vacation time since July 1, 2015, you would need to determine how much time an employee would accrue from January 1, 2016 to their anniversary date. That number plus any previously accrued unused time would carry them until their anniversary date. Then, the new accrual year starts on their anniversary date.

It’s important to establish rounding standards so each employee’s vacation amounts are calculated fairly.

This entry was posted on Tuesday, September 22nd, 2015 at 7:52 pm and is filed under
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