Can I manage absence part time via reduced contractual working hours instead of an absence?

It is always important to closely monitor employees with absence part time.

If you reduce your contractual working hours during a period and adjust your business, all calculations and statistics will be based on the ‘new business’. This is important to keep in mind if you are absent part time and are entitled to base for accruing holiday and amounts for the days you are absent. This also applies to pensions.

We recommend Always not to reduce the contractual working hours without working with our function Absence part time.

If the absence is of the leave of absence type, you can choose to reduce the working hours (lower the contractual working hours) instead of reporting absence part time in the time report. If you choose this approach, we suggest you mark this in an own field on the employee record so you can easily extract the information in reports.

In Fixed transactions, a note wage type is entered to inform the employee about the full time contract according to the employment agreement.

The following reasons for absence should be considered before choosing an option.

General

In general, we recommend always using absence part time to have the correct assignment on the base employment and be able to produce statistics on absence. You should also always work with absence part time when the absence is base for accruing holiday.

For absence of the leave of absence type, you can choose to use part-time or reduce the contractual working hours. To decide which to choose, we’ve listed some tips below to keep in mind.

Parental leave

If you take parental leave on a part-time basis, base for accruing holiday calendar days are counted just as for full day absence.

It is therefore not beneficial to reduce working hours during this period, 120 days and 180 days for single parents. If you do anyway, we recommend using absence part time as it helps you with calculating holiday pay/debt, etc.

When the person wants to have time off for a longer period and days are not base for accruing holiday, you can choose to reduce working hours instead of having the person as absent part time. It is important to mention that we then recommend having a note wage type for this and also be aware of which other parts are affected, statistics, etc.

Pregnancy leave

This is an absence that accrues holiday pay for up to 60 days, so you should always use absence part time.

Military re-training/Civil defence

This is an absence that accrues holiday pay for up to 60 days, so you should always use absence part time for up to 60 days.

Sick leave

During the period when you are entitled to any sick unsocial working hours, you should not use absence part time; it should be used after the first 14 days and if the sick leave is long term.

For sick leave, you should always use the absence part time function and not reduce contractual working hours, as this statistic is needed in many different reports.

Leave of absence

Absence of the leave of absence type does not accrue holiday pay and can therefore be the absence where you, instead of using absence part time, choose to reduce contractual working hours.

What should I keep in mind regarding payroll and reporting to different authorities/pension institutions

Pension – ITP2

If you have part-time employees, you need to pay extra attention to those with ITP2, as absence is not calculated in the same way as ITP1.

Payroll structure statistics

Here you state ‘full time’ worked time and ‘actual’ worked time on the employee record. Worked time is calculated on entries that have that marking on the wage type.

Short-term employment statistics

In this statistic, only full day absence is considered, not absence part time. No calculation is made on contractual working hours.

Business cycle statistics

If you choose to reduce the contractual working hours for an employee on leave of absence, the person will be shown as a part-time employee. If you include the person with an absence deduction, it calculates on hours worked.

Own FTE Reports

If you have built your own reports, it is important to find out how your company wants to count these businesses that are part-time. Do you want to include original business and then calculate actual FTE, or are you not at all interested in base employment?

Dashboard

Our dashboard takes absence part time into account.

Disadvantages of reducing contractual working hours/Advantages of absence part time:

• If you want statistics on, for example, leave of absences, this information does not exist in the calendar.
• Employers certificate does not have information about the full-time position at its base, it must be corrected manually.
• Equality plan
• Other statistics