In the same way that the night additional causes doubts, the previous remuneration of the month of rest, too. In today's article we will talk How Holiday Advance Works, your deadlines, calculations, who is entitled and more. Stay with us, read the content and know everything about the subject.
To explain How Holiday Advance Works, it is necessary that you, dear reader, know what this benefit means. See below.
What is the vacation advance?
The holiday advance is a right provided for by the article 145 of the CLT, which provides for the remuneration prior to the rest period. This advance can be paid in three ways:
- Integral, in which the employee receives 100% of the amount pertinent to the period;
- In installments, if the option of splitting the vacation period into 2 or 3 times is considered;
- ⅔ of the amount, equivalent to the rest period and the remaining ⅓ that was sold, making the employee return to his activities before 30 days.
This latter practice is popularly called a financial allowance.
The payment for vacation is considered an advance just because it is made before the employee leaves his corporate activities to take advantage of his rest period.
The purpose of advancing the 13th salary on vacation is to make it possible for the employee to take advantage of his rest period with the anticipated remuneration and that, logically, he would only be entitled at the end of the month worked.
It is important to say that the payment of the vacation advance can only be considered made through the payroll. This means that if there is a salary adjustment while the employee is on vacation, he is entitled to the percentage referring to the salary on the payroll of the subsequent month.
Who is entitled to an advance holiday?
According to the Consolidation of Labor Laws, every worker who is registered under the CLT regime, after one year in office, is entitled to vacation and, consequently, his prior proportional remuneration.
What discounts can appear on the vacation receipt?
Holiday receipts contain earnings and discounts. See below:
Earnings / Remuneration
- Base salary amount;
- De additional which includes the sum of the base salary plus + the averages paid at the time of leave;
- Advance of the 13th salary, upon prior request from the employee;
- Average overtime, if any;
- Additional night, unhealthy or dangerous, if any;
Discounts / Deductions
- Sum of social security contribution (EHIC);
- Income tax;
- Alimony, if any;
- Other discounts that may affect the payroll.
Heads up: although there is no rule that discriminates what should or should not be deducted from the vacation receipt, payment cannot be granted in full. In other words, the sum of legal discounts is mandatory and failure to comply with the law can result in a fine that, at the end of the month, generates a negative payroll with the balance of legal, conventional and contractual discounts.
In these cases of negative balance, the company “lends” the amount that will be paid by the employee over 60 days, since there is no payment at the time the employee returns from vacation (30 days) and the discounts for the following month ( another 30 days).
Advance of the 13th on vacation
THE Law 4749/1965, which sets out some rules for the Christmas bonus, which is better known as the thirteenth salary, states in its second article:
“§2 – The advance will be paid at the employee's vacation opportunity, whenever the employee requests it in January of the corresponding year. ”In other words, it is the company's obligation to pay the advance of Christmas bonus when the employee requests it together with the vacation advance.
Normally, when the employee is not asked for a vacation, the thirteenth salary is divided and paid twice: in the months of November and December.
But, going back to advance of the 13th on vacation, imagine receiving “extra” to enjoy your rest period? Sensational!
- Salary + additional por for being on vacation + half a salary
Attention: if you plan to take a vacation before November, don't waste time!
As the application must always be made in January, the personnel department needs to be informed as soon as possible. Look to them for more details on how this issue is handled at the company you work for.
What does the DP have to do when the employee asks for the thirteenth advance?
First, it is important to have recorded this employee's desire. Ask him to write a handwritten letter requesting the advance of the 13th on vacation..
Then, talk to your finance department to arrange payment. In that case, you need to know how to calculate the 13th and deposit the amount with the vacation advance. Remember to itemize the payment on the vacation receipt.
What if the person is not yet entitled to the first half of the 13th?
It is a common practice of many companies to only schedule vacations in the second semester for those who ask for the advance, because, thus, in the case of an unexpected termination, the company does not lose the percentage to which the employee would not be entitled.
It looks confusing, so follow this detailed explanation:
For each month worked, the employee earns 1/12 of the 13th salary. That is, if he has been employed for 6 months, he has already earned half the Christmas bonus.
In this way, the company does not take risks, as it is paying something that is already the employee's right.
Now, if the employee has less than 6 months at home and asks for the 13th vacation advance, the company is at serious risk of paying undue amounts, since he still does not have the minimum period to receive the benefit.
In case of contract termination before 6 months of experience, it may be that the termination calculation is lower compared to the amount he has not yet acquired, which can cause loss to the company. For this reason, in most cases, companies choose not to schedule holidays in the first semester, if the employee asks for the 13th advance payment.
Know that, even if it is the employee's right to receive the advance of the Christmas bonus along with the holidays, it is a priority that the company grants and agrees with the choice of vacation period of the employee.
So, did you enjoy learning how the vacation advance works? Follow the HR Consultants UKy blog and check out other administrative content that can help you manage your company and your employees.