**--IMPORTANT-- **Before you start, make sure to: Click **Settings** > **Global Settings** > **Attendance**. For this to work, your **Display Mode** must be set to **Days**

**Accrue Time-Off by Hours Worked**

These instructions accommodate a workday of any length and assume a 365-day year.

The average number of weekly workdays multiplied by 52 weeks = X workdays a year. Assume perfect attendance. By this we mean that the employee has not missed any days or partial days in a year. He/She was out only for vacation, holidays, and any other days off you consider to be legitimate. We’ll call this variable Y.

1. Subtract **Y** from **X**.

**X “total workdays” **–** Y “legitimate days off” **=** the actual number of workdays in a year.**

2. Multiply the result of step two by a reasonable average of hours in a day.

**Number of workdays a year **x** number of hours a day **=** number of hours a year.**

Assuming were talking about vacation, and the only time off taken was legitimate, how many days of vacation would an employee earn that year? For our example, we’ll use **10 days**.

3. Multiply the maximum number of vacation days by the number of hours in a typical day. In our example, we’ll use **8 hrs**.

**10 days **x** 8 hours per day **=** 80 hours.**

4. Perform backwards division. Divide the result of step 4 (total vacation hours off per year) by the result of step 3 (total number of hours worked in a year @ full days and with perfect attendance).** 80 hours of vacation time a year divided by 1,864 hours worked in a year = .0429 hours of vacation time earned for every hour worked. **

**Example:**

You allow **10** days vacation, **5** days sick, **3** days personal and **9** holidays. Total: **27** days off a year.

**52** weeks X **5** days per week = **260** workdays **– 27** days off = **233** workdays.

Assuming an **8**-hour day. **233** days X **8** hours a day = **1,864** annual work hours.

**8** hours a day X **10** days off per year = **80** hrs of Vacation per year.

**80** hrs of Vacation per year divided by **1,864** hours worked = **.0429hrs **or **.043** hours of vacation time earned for each hour worked.

**To verify: **Multiply **.043**hrs of vacation x **1,864** hours worked in a year (perfect attendance) = **80.152** **hours of vacation annually**.

Limit the actual maximum earned to 80 hours by entering that amount under **Max Annual Earn** on level 1 of the Time-Off plan.

**80 hours of vacation annually** divided by **8** hours (our example workday) = **10** **days off a year**.

**Additional Levels:**

If you have employees who have been employed longer who are eligible to earn higher amounts of time-off per year, you would have to create an additional level and perhaps several additional levels on the plan that allow a higher amount of vacation to be earned for each hour worked.

Perhaps someone has worked long enough to be eligible for 3 weeks of vacation per year instead of two weeks of vacation. At 8 hours a day, such an employee would need to earn 120 hours of vacation annually. Based on [our example] of the number of hours worked per year with perfect attendance, employees on this new level would need to earn .06 hours of vacation for each hour worked. The fraction may be different for you if the total number of hours worked per year differs from our example. 120 hours total time-off per year ÷ 2000 hours worked in a year = .06 hours.

*RESULT:*

Anyone with this particular Time-Off plan who is eligible for 15 days of vacation per year will earn .06 hours of vacation for every hour worked.

Assuming perfect attendance beyond authorized time-off, the employee would work 2000 hours per year. (Our Example)

VERIFY:

2000.00 hours worked per year

x .06 hours vacation earned for each hour worked

120.00 hours of vacation per year

**--NOTE-- ** If you [are] running **Gradience TimeClock** along with **Gradience Attendance**, and you have **Code Sharing** enabled in **Global Preferences**, whenever the employee clocks in and then back out or when hours worked are entered manually by a manager in **TimeClock** a “**W**” will automatically appear on the calendar in **Attendance**. This “**W**” will have a [value] of x number of hours. The software will multiply this [value] times the fraction of time-off earned per hour worked established by the Time-Off plan based on the employee’s longevity with your organization as explained above.

If you are [not] running **Gradience TimeClock** along with **Gradience Attendance**, you must manually enter a “**W**” onto the calendar for each day worked. You must then, right-click on the “**W**” and select **Absence Detail**. When the Absence Detail screen opens, click twice on the **8.00 hours** and then, enter the actual number of hours worked that day. Bear in mind that the program represents partial hours as decimals, not minutes. **Example:** **4.25 hours** rather than **4:15**. The software will multiply this [value] times the fraction of time-off earned per hour worked established by the Time-Off plan based on the employee’s longevity with your organization as explained above.

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