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How Zenefits Determines Time Off Liability For a Terminated Worker

For employers who have a limited time off policy, Zenefits will automatically list the worker's time off liability during the termination process. However, the time off liability amounts shown on their time off history page may not match the actual time off liability amount shown during termination, depending on how the policy accrues time.

In the event that the accrual method results in a discrepancy between what shows in the individual's time off history page and what is shown during the termination flow, the liability amount will update on the worker's termination date. Admins can then view the terminated worker's time off history by following these steps.

Liability calculation for time off policies that do not accrue in advance

If an individual's time off plan does not accrue in advance and they are terminated during an open accrual period, time off balances are prorated for the open period and liability is calculated through the worker's termination date.

For more information about why Zenefits determines time off liability this way, see the California Department of Industrial Relations page on this subject.

  • The time off liability amount in our system will differ from the amount during the termination flow because the system has not yet recognized the accrued time through the termination date.
  • Example for a policy accruing monthly:
    • An employee is terminated mid-month on October 13th.
    • Time off would not have accrued until November 1st for the month of October.
    • Employee would receive prorated time off liability for active time for October 1-13th.
    • This prorated balance will be shown during the employee termination flow, as well as in the termination email sent to administrators.

Liability calculation for time off policies that accrue in advance

If an individual has already received an accrual on a plan that accrues in advance, our system will not reduce their time off balance and the liability calculation will reflect the entire balance amount.

Zenefits will never reduce a balance for any reason once it has posted.

Example for a policy accruing monthly:

  • An employee leaves company mid-month, but has accrued the full month's worth of time off time.
  • Zenefits will not reduce the time off liability amount upon termination, as the employee has already accrued that time.
  • The time off liability amount shown on employee's time off History page and during termination will be correct, unless the employer's policy contract is different.
  • If an employer's plan differs from this assumption, they would need to perform manual calculations to alter the liability amount.

Not all states require payout of time off liability. Talk to legal counsel to determine any employer responsibility.

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