Some collective agreements dictate that an employee must have paid out the value of their extra holiday entitlements, if they resign or are terminated with extra holiday entitlements to spare. Salary does not handle such a payout automatically.

Why does Salary not handle the payment of extra holiday entitlements?

The reason for Salary not handling the payout automatically is that there is currently no legal requirement to provide a payout of the value of the extra holiday entitlements in case of resignation or termination, nor does a law exist that dictates the exact value of such extra holiday entitlements. Therefore, due to different collective agreements in different companies, this is not an action that can be automated.

How do I pay out the value of extra holiday entitlements?

If you are paying out the value of the extra holiday entitlements, it can be done as follows:

1) You create a bonus payout (type Regular) with the value of the extra holiday entitlements.

To do so you need to go to Employees -> Select the employee -> Choose Give bonus -> Choose Create bonus -> Enter the information and Save changes.

2) You decrease the accrued extra holiday entitlements.

You have to decrease the employee's extra holiday entitlements balance corresponding to the number of days that have been paid out. To do so you need to go to Employees -> Select the employee -> Choose Balance adjustments -> Select type Extra holiday.

Increase the number of used days with the number of days that have been paid out, like so:

Then Salary will pay out the value of the extra holiday entitlements as well as decrease the extra holiday entitlements balance.