Where to Configure Accrual Plans

To begin setting up an accrual plan, navigate to:

Time Off → Configuration → Accrual Plans

General Configuration Settings

When creating an accrual plan, use the following key settings:

• Name: Choose a descriptive name (e.g., Mexico - Yearly Vacation Plan).
• Accrued Time: Set to "At the end of the accrual period" to release days after the period ends.
• Milestone Transition: Set to "Immediately" to apply rules as soon as the milestone is reached.

Accrual Plan Types

Here we’ll explore two common accrual plan types, tailored to the Mexican vacation policy.

1. Yearly Accrual Plan (Restrictive)

This plan grants vacation days once per year, based on the employee's hire date and seniority.

How it works:

• Vacation days are accrued after completing each full year of service.
• The amount of days increases with seniority. Example:
  • 1st year: 12 days
  • 2nd year: 14 days
  • 3rd year: 16 days
  • ...and so on, based on legal requirements.

Configuration Tips:

• Set the accrual frequency to Annual.
• Specify the exact day and month for accrual (e.g., the hire date or a fixed date like January 1st).
• To avoid setting up separate plans for each hire date, you may use standard accrual dates (e.g., beginning or middle of the month).

Flexibility Option:

• If you want to allow employees to request time off even before accrual, enable "Allow negative balances" in the time off type.

Pros:

• Ensures control over when days are granted.
• Useful for organizations with strict vacation request policies.

2. Monthly Accrual Plan (Flexible)

This plan grants vacation days gradually each month, offering more flexibility for both employees and HR.

How it works:

• Vacation days are distributed equally over 12 months.
• For example:
  • 1st year: 12 days/year → 1 day per month
  • 2nd year: 14 days/year → 1.167 days per month
  • etc.

Configuration Tips:

• Set the accrual frequency to Monthly.
• Choose the specific day of the month when days are added (e.g., the 1st or 15th).
• For higher precision, you may create separate plans for different start dates, or apply a universal schedule.

Flexibility Option:

• Like the yearly plan, you can allow negative balances if the company prefers not to restrict usage strictly by accrual.

Pros:

• Employees gain access to vacation days progressively.
• Reduces wait times and supports more dynamic time-off planning.

Regarding Mexican Payroll:

The vacation allocation flow is designed for internal HR management purposes, allowing employee vacation days to be assigned, requested, and approved by both the employee's manager and the HR officer. These records are visible in the payroll application through worked entries.

However, this flow does not impact payroll calculations directly. Payroll calculations are based solely on the parameters defined in the vacation table within the payroll application.

Final Notes

• Limit settings (e.g., maximum carryover, expiration, or caps) are optional and can be adjusted based on company policy.
• Choose the accrual model that best aligns with your organization’s culture, workforce needs, and legal obligations.