How do I handle sick days and vacation days in the payroll?
October 6, 2023 | 30,00 EUR | answered by Claudia Köhler
Dear payroll experts,
I work in a medium-sized company and am responsible for payroll. Lately, I have been having trouble figuring out how to handle sick days and vacation days in the payroll.
So far, I have simply subtracted the sick and vacation days from the total number of workdays to calculate the actual number of hours worked by employees. However, I am not sure if this is correct and if I might be doing something wrong.
I am worried that I may be making errors in the payroll and that this could potentially lead to legal consequences for the company. Therefore, it would be very helpful if you could explain to me how I should correctly handle sick and vacation days in the payroll.
Are there any specific legal regulations that I need to consider? Should I really just subtract the hours for sick and vacation days from the total number of workdays? Is there perhaps another, better method for calculating hours?
Thank you in advance for your help and support.
Best regards,
Elvira Neumann
Dear Mrs. Neumann,
Thank you for your question regarding payroll in relation to sick days and vacation days. It is important that you educate yourself on this topic to avoid any errors in payroll and prevent legal consequences for your company.
First and foremost, it is important to know that there are legal regulations that you must follow when calculating working hours for sick days and vacation days. According to the Working Hours Act (ArbZG), employees are entitled to compensation during a period of incapacity due to illness or during an approved vacation. This means that you must still pay the hours that an employee cannot work due to sickness or vacation.
In payroll, you should not simply deduct the working hours for sick days and vacation days from the total number of workdays to determine the actual hours worked. Instead, you should record sick days and vacation days separately and compensate the hours accordingly.
When calculating hours for sickness, the regulations of the Continued Remuneration Act (EFZG) usually apply. According to this, employees are entitled to up to six weeks of continued payment by the employer in case of illness. You can base the calculation of working hours during sickness on the employee's average daily working hours.
For vacation days, employees are entitled to their regular compensation during their vacation. Therefore, you should compensate the hours that an employee would normally work during their vacation.
It is important that you familiarize yourself with the legal regulations and ensure that your payroll is accurate. If you are unsure, I recommend consulting with a specialist in labor law or an experienced tax advisor.
I hope this information helps you and wish you success with your payroll.
Kind regards,
Claudia Köhler
