What is the difference between waiting period and vesting rule?

In oracle cloud absence management Waiting Period and Vesting Rules are two different options available while configuring absence plans. These options are only available for Accrual and Compensatory type plans.

Waiting Period is available on the Participation tab as shown in the image below.

While Vesting Rule option is available in the Accruals tab

Waiting Period

To understand the waiting period concept better let’s take an example where an employee X is eligible for an absence plan effective from 1^st January, however, as per the plan configuration waiting period is set to three months. What does that mean is although employee is eligible for that plan effective from 1^st January, he will be enrolled to the plan only from 1^st April (three months after 1^st January).

What that also means is employee will not accrue any entitlement for these three months. Employee will not even see the plan name when navigates to Absence Balance page.

Now on 1^st April (when waiting period is over), employee can see the plan details on Absence Balance Page and the enrollment start date will be shown as 1^st April.

Vesting Rule

On the other hand, Vesting Period works independently of waiting period configuration. Suppose vesting period set for a plan is three months and employee is eligible for that plan effective from 1^st January and as per the plan configuration employee is entitled to get 2 days of balance at the end of every month. So, in this case, employee will get enrolled to the plan as on their eligibility date only, which is 1^st January, and employee can see the plan details on the absence balance page, however, for the first three months employee will not be able to use any accrued entitlements. At the end of the third month (31^st March) employee will have 6 days of entitlement, which he can use only from 1^st April.

This is a guest post by our HCM colleague, Anita Majhi. We encourage you to leave comments and show support for individuals who are actively contributing to our community. You can also join us in contributing to the growth of this community.