The employment contract: Vacation

What do you need to fill in for the employee to get the correct vacation?

Fill in vacation entitlement, vacation model and vacation year and you are good to go! If you also have the same settings for all employees, this is included in your default settings for the employment contract and follows along when you create a new employment contract. Then you only need to check that it looks right and move on to the next tab!

Vacation entitlement

Here you enter the employee’s vacation entitlement. If the vacation entitlement changes, click the plus sign and enter the new vacation entitlement from the date it starts to apply. Kleer then calculates, depending on the number of days per vacation entitlement, how many vacation days the employee has available.

Vacation entitlement for an hourly employee?

If the employee is paid by the hour and is to get vacation pay paid out on an ongoing basis, the vacation entitlement can be removed. The person is then not shown in the vacation liability. If the employee works more than three months at the company and is scheduled for a certain number of hours a week, for example, the person is entitled to paid vacation. The vacation entitlement is then to be added just as for a monthly-paid employee, and the correct settings are to be made under calculation model, vacation year and vacation rule.

How is vacation calculated?

How vacation is calculated depends on which vacation model, which vacation year and which vacation supplement you apply. Read more about what that means below.

What does vacation model mean?

Current year: The same pay rule

Choose this model if the employees, at the start of the vacation year, get access to all their paid days that have not yet been earned but are earned during the vacation year. Vacation pay is calculated on the monthly salary with a vacation supplement of 0.43% or 0.8%.

Previous year: The same pay rule

Choose this model if the company applies earning years and vacation years, which means that employees must first earn their vacation days one year before they can be taken in the following vacation year.

Previous year: The percentage rule

The percentage rule can only be used with the previous vacation year. The employee must therefore earn the vacation in one year and take it out the year after.

Under the percentage rule, vacation pay is 12% of the employee’s total gross income during the earning year, when the number of vacation days is 25. If you are entitled to more days, the percentage increases by 0.48% per day.

The percentage rule can be mandatory by law if the employee’s salary over the whole year consists largely of variable pay.

Which vacation year should we choose?

The vacation year should be the same for all employees, except where there are employees who should apply the percentage rule. According to the Swedish Annual Leave Act, the vacation year is April to March, but it is also common to apply January to December. This is to be regulated in the employment contract.

Here you control in which period you earn vacation and in which period you take it out.

Where do we enter advance vacation?

When the previous earning year is applied, it is common to apply advance vacation. This is so that employees are entitled to take paid vacation already in their first year. The advance days the employee takes out will be shown in the vacation liability and written off 5 years after they are taken. If the person leaves within 5 years, this liability is settled on the final salary, that is, the employee has to pay back for the days taken in advance.

If you apply advance vacation in the first and possibly the second year of employment, a Kleer consultant must help enter the days so that the employee does not get unpaid vacation when registering their days off. You cannot add advance days to an employee yourselves.

What does vacation rule mean?

The vacation rule controls how the employee can register their vacation days, in hours or only in whole days. According to the Annual Leave Act, vacation should be registered in whole days.

Periods where vacation is not to be earned

This function is only used where vacation is not to be earned for certain reasons, depending on something that happened in earlier bookkeeping. Contact your consultant for help with questions and thoughts.