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Flex Salary: Setup and mutations processing
Flex Salary: Setup and mutations processing

Learn everything about the setup and processing of mutations for the Flex Leave module.

Sven avatar
Written by Sven
Updated over 6 months ago

The Alleo Flex Salary module enables employees to do the following

  • Flex Leave module - flexibly buy or sell non-statutory leave hours:

    • When an employee purchases additional leave hours, the source for this is a salary based budget, like the gross holiday allowance or 13th month bonus.
      When leave hours are sold, the hours are deducted from the non-statutory leave balance. The hours sold are paid to the employee as gross salary.

  • Cash out of the Flex Salary budget source (like holiday allowance or a 13th month):

    • The employee can choose between a one off cash out or a monthly cash out.

Required data & import templates

In addition to the standard employee data required to create an employee in Alleo (first name, last name, email address), the following additional data is required per employee to activate the Flex Salary module. This data is shared on a monthly basis with Alleo:

  • Gross monthly accrual of the budget source (e.g. holiday allowance)

  • Gross hourly wage

  • Balance of non-statutory leave hours

  • Optional: Balance of statutory leave hours

    • This data is not a hard requirement but very useful. If available, these hours are displayed in the app, which can help the employee decide whether to buy or sell additional leave hours. See the app screenshot below.

Please use one of the following templates to share the required data with Alleo, it is crucial to stick to the exact header names provided in the template:


Please keep the following in mind:

  • The Alleo platform reflects the Flex Salary data, but your payroll or HRIS platform will remain the source of truth for this data.

  • The data must be provided to Alleo on a monthly basis, before the 25th calendar day of each month. The data should be shared in a secure way, ideally via the Documents section of the Alleo Portal.

  • Flex Salary budgets are typically granted in Alleo with a 1 month delay. This means that employees who join your company should typically only receive budgets like gross holiday allowance in the Alleo app after the first salary run was processed.

    • If you share employee data via an integration with Alleo the employee can already receive app access on the first workday, but typically with €0 holiday allowance.

  • The first export shared with Alleo before launching the Flex Salary module should also contain the both the balance of budget as well as the monthly accrual.

Mutation types & example reports

There are 3 different mutations types generated by the Flex Salary module. The mutations are available real time in real time via the Alleo Portal. For more information about the Alleo portal and downloading the reports, see this article.

  • Purchases of non-statutory leave hours (example report)

    • Employee action:

      • An employee with a gross hourly wage of €15 purchases 8 hours of leave. 8 hours of leave * €15 = €120.

    • Mutation employer:

      • €120 will be deducted from the gross holiday allowance reservation.

      • 8 hours of leave are credited to the balance of non-statutory leave hours.

  • Selling non-statutory leave hours (example report)

    • Employee action:

      • An employee with a gross hourly wage of €18 sells 4 hours of leave.

      • 4 hours of leave * €18 = €72.

    • Mutation employer:

      • €72 is paid out as additional gross salary.

      • 4 hours of leave are deducted from the balance of non-statutory leave hours.

  • Holiday allowance withdrawal (example report)

    • Employee action:

      • An employee requests a holiday allowance withdrawal of €500 holiday.

    • Mutation employer:

      • €500 is paid out as additional gross salary.

      • €500 will be deducted from the gross holiday allowance reservation.


Configuration options

The following options can be configured according to the employer's wishes:

  • The maximum number of hours that can be bought/sold by an employee:

    • This is a fixed number of hours for all employees and is not possible to vary this per employee.

  • The months of the year in which leave hours can be bought/sold.

  • The time window during which the Flex Leave module is active:

    • Choose the day of the month from which the buy/sell option is disabled/enabled. This window is used to sync leave balances with Alleo.

    • Typically the Flex Leave module is disabled from the 20th till the end of the month.

  • Deactivating the buying or selling option.

    • It is for example possible to deactivate the selling leave option alltogether.

  • Deactivating the budget cash out option.

Mutations processing schedule

Below is an example schedule for the monthly data exchange and actions required by Alleo and the employer. This schedule is based on the following assumptions:

  • The source for purchasing leave is holiday allowance.

  • Mutations made by employees between the 1st and 20th will be processed in the salary run of that month. Mutations after the 20th are processed with the run of the next month.

Day

Action

Who

1 april - 00:01

  • Alleo grants the accrued Holiday allowance based on the salary run of March.

  • Buying / Selling of leave is enabled for employees.

Alleo

20 april - 23:59

  • Buying / Selling of leave is disabled for employees.

Alleo

20 april till end of the month

  • Employer processes mutations made between the 21st of March and 20th of April.

  • The mutations are paid out with the April salary run.

Employer

25 april

  • Employer delivers the monthly data to Alleo, latest by the 25th of the month.

  • Alleo processes the provided data.

Employer / Alleo

1 mei - 00:01

  • Alleo grants the accrued Holiday allowance based on the salary run of April.

  • Buying / Selling of leave is enabled for employees.

Alleo

FAQ

  • What happens to accrued holiday allowance which is not withdrawn by employees?

    • In that case, accrued holiday allowance will be paid out as usual in May or June.

  • We use an integration to share employee data with Alleo. Can the data exchange and processing of the Flex Leave module also take place via the integration?

    • This is not yet possible, but we aim to facilitate this in the future for the Payroll platforms which we integratie with.

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