Setting Up Vacations

You can enable negative vacation balances for employees by selecting the Negative Balance Option check box on the Absences page.

  • If you do not enable negative balances, the system generates an error message and does not process the vacation take if the vacation take goes over the accumulated balance.

  • If you enable negative balances, you can set a limit to the negative balance by either a fixed amount or a percentage of the next absence entitlement to be generated.

    For example, if an employee's next vacation entitlement is 12 days, and you set the limit for negative balances to 50 percent, then the system takes a limit of 6 days.

Employees in Mexico receive a vacation premium, which is at least 25 percent of their salary. Vacation premiums are paid in one of three ways:

  • Anniversary: Employees receive their entire vacation premium on their employment anniversaries, regardless of whether they already took the vacation.

  • Annual: Employees receive their entire vacation premium for the year on a date the company specifies.

  • Proportional (spread all along the vacation takes): Employees receive their vacation premiums as they take vacation throughout the year.

    This way, employees do not receive vacation premium pay in advance, but receive it as they use it.

Note: You can override the payment date at the payee level. If an employee is terminated before the vacation premium date, you can calculate the proportional days and pay the employee at the time of termination.

You'll define the payment option for vacation premiums on the Absences page.