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Nov17

Vacation Policy Transition

I want to switch from anniversary vacation renewal to annual (Jan 1 2016) renewal. I have read all the other answers and I am still struggling with this switch over. I want to make it happen for the new year. I have employees that have start dates in every month expect for 4, 5 and12. Keeping up with their hours and renewals is becoming a full time job. I want to be fair to everyone and make my job a little easier all at the same time. Please help with this calculation. Thanks.

Since you’ve read our previous posts I’ll try not to be redundant!

On January 1, 2016 employees will receive a one-time adjustment in their vacation pay which will be prorated based on their anniversary date.

The prorated vacation amount is based on the length of time between their 2016 anniversary date and December 31, 2016. This way the employees don’t lose any vacation time. The time is just awarded in January rather than later in the year on their anniversary date.

Let’s say employees receive 2 weeks of vacation per year. This calculates to 80 hours of vacation time for employees who work 8 hours a day, five days a week. Divide total number of vacation hours (80) by number of weeks in a year (52) = 1.538 hours of vacation earned per week.

Sarah’s anniversary date is June 2nd. On June 2, 2015, she was awarded 2 weeks or 80 hours of vacation to cover her until June 1, 2016. Now, we need to calculate the amount of time she would earn from June 2, 2016 to December 31, 2016 which is 30 weeks.

Hours of vacation earned per week (1.538) x weeks of vacation entitlement (30) = 46.14 hours of vacation.

So, Sarah would receive 46.14 hours of vacation on January 1, 2016 which, in addition to any vacation hours she currently has, will cover her until December 31, 2016. Then on January 1, 2017 she will receive her full 80 hours of vacation time.

The same calculation can be applied with any date.

John’s anniversary date is on October 6th. He just received 80 hours of vacation on October 6, 2015 to cover him until October 5, 2016. Now, we need to calculate the amount of vacation time he would earn from October 6, 2016 to December 31, 2016 which is12 weeks.

Hours of vacation earned per week (1.538) x weeks of vacation entitlement (12) = 18.46 hours of vacation.

So, John would receive 18.46 hours of vacation on January 1, 2016 which, in addition to any vacation hours he currently has, will cover him until December 31, 2016. Then on January 1, 2017 he will receive his full 80 hours of vacation time.

The calculations can be overwhelming; however, once completed the administration of an annual vacation policy is less burdensome. Before the transition, make sure you give employees ample notice of the policy change, preferably in writing. Be ready to address a lot of concerns from employees.

Feel free to post any questions in the comments section. HTH!

This entry was posted on Tuesday, November 17th, 2015 at 12:26 pm and is filed under
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