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Change in Vacation from Block to Accrual
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Change in Vacation from Block to Accrual
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Our company would like to change from granting vacation in blocks annually upon anniversary dates to an accrual based system. Can we do this to current employees and what do we need to consider? Thank
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Forums » Topic Forums » Legal Forum » Change in Vacation from Block to Accrual
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Change in Vacation from Block to Accrual
posted at 5/20/2009 3:26 PM EDT
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Posts: 1
First: 5/20/2009 Last: 5/20/2009 |
Our company would like to change from granting vacation in blocks annually upon anniversary dates to an accrual based system. Can we do this to current employees and what do we need to consider? Thank you. |
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Change in Vacation from Block to Accrual
posted at 5/20/2009 4:12 PM EDT
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
Absent a contract that would preclude you, individual or collective, you can do this. What you should be aware of is how this is communicated, what questions the employees will have, perceptions of a take-a-way and how you should proactively address those. |
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Change in Vacation from Block to Accrual
posted at 5/20/2009 5:29 PM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I would suggest having a starting accrual date and prorating the originally accrued amount based on the amount of time from the anniversary date to the starting accrual date to be as fair as possible. And not taking away vacation already earned.
For example, let's say you are starting 1/1/10 under the accrual system. Someone who just got their anniversary vacation in December would not get any extra at 1/1, but someone whose anniversary date is 7/1 would get 1/2 a year's accrual to start and then start accruing from 1/1 forward. I used to have a spreadsheet to do this, but it is not hard to setup the calculations. This keeps the employee from feeling cheated since at 7/1/10, they will have gotten the same full amount as before (unless you decrease the accrual amount). Also you can sell it positively as they accrue it earlier and can use it earlier than if they wait until anniversary date to get it. |
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Change in Vacation from Block to Accrual
posted at 5/21/2009 12:00 PM EDT
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Posts: 18
First: 5/20/2009 Last: 4/19/2011 |
We made this same change several years ago, and to this day, employees have a hard time understanding it, or perhaps it's just convenient for them to have forgotten it. It really only becomes an issue upon termination, whereby everyone still thinks they are entitled to an entire year's worth of vacation, instead of the accrued but unused amount. My recommendation is to ensure that not only is it communicated frequently and in several different formats, but also that it is reviewed personally and in detail with every employee once they have submitted their resignation. |
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Change in Vacation from Block to Accrual
posted at 5/22/2009 5:06 AM EDT
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Posts: 38
First: 6/22/1999 Last: 11/3/2009 |
We've used the accrual method for several years. Having the accumulated vacation hours printed on each paystub helps the employees see exactly what balance they have at any given time. That doesn't stop the "How much vacation will I have on August 3" questions but it has eliminated confusion. |
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