Vacation Pay System for Canada

Designing a payroll-critical extension to the existing vacation pay setup, adding mobile requests, admin approvals, wallet adjustments, reporting, and better control for Canada-specific vacation pay workflows.

My Role

Product Designer - product scoping, interaction design, systems thinking, edge-case mapping, visual design, prototyping, and implementation handoff.

Timeline & Status

2 to 3 weeks

This was a urgent client requirement, so we moved quickly from understanding the gaps to designing the full flow for review.

Team

Product Designer (me)

Product Manager

Engineering team

Client stakeholders

Overview

This project focused on Canadian vacation pay for construction companies, where vacation pay is calculated as a percentage of eligible earnings and directly impacts payroll. The existing web system had policies and configurations, but the Canada workflow needed new request, approval, mobile, adjustment, and reporting capabilities.

Problem Statement

The existing system already had configurations and policies, but they were limited for Canada-specific vacation pay needs. It supported automatic payout patterns, but did not support employee-initiated vacation pay requests from mobile, approval workflows, wallet adjustments, and full reporting.

Outcome

Designed an extended vacation pay experience across policy creation, policy assignment, mobile employee requests, employer approvals, wallet adjustments, reporting, and worker self-service.

APPROACH

How I worked on the problem

I treated this as a system design problem because the existing setup already handled automatic vacation pay behavior, but the new requirement needed employee-initiated requests, approval control, wallet-level adjustments, and visibility across web and mobile.

1
Understood payroll rules

Mapped how vacation pay should be calculated across earning types, tenure structures, policies, and pay periods.

2
Mapped existing limits

Reviewed the current policy and configuration setup to identify what was already working and what was missing for Canada.

3
AI helped me move faster, not skip thinking.

I used AI as part of the design process to break down complex rule combinations, write clearer scenarios, and explore alternate flows. Final decisions were still validated with product and engineering.

4
Designed flows and handoff screens

Created flows with warnings, empty states, payroll constraints, and clear states for engineering implementation.

THE PROBLEM

The existing system had policies, but the Canada workflow needed more control and access.

Limited payout control

The old flow supported automatic payout behavior, either after the configured period or as a percentage paid in every payroll cycle.

Limited policy capability

Policies already existed, but they were limited in how they handled Canada-specific payout behavior, employee-initiated requests, and operational visibility.

No earning-type control

Vacation pay treatment needed to vary for earning types like overtime, reward, bonus, or gift money.

No employee request workflow

Employees could not raise a vacation pay request from mobile when they were going on vacation or needed the accrued amount.

No liability visibility

Admins could not easily track total liability, high balances, upcoming escalations, or exceptions that need attention.

No vacation pay on mobile

The existing mobile app did not have vacation pay flows because most earlier construction clients were based in the US, where this requirement was not prominent for the product.

EXISTING MODEL

How setup worked before

Before redesigning the flow, I reviewed how the existing system handled vacation pay. The system could either pay vacation pay automatically after the configured period or include the vacation pay percentage in every payroll cycle, but it did not let employees request the accrued amount from mobile when they needed it.

THE SOLUTION

New vacation pay architecture

The redesign keeps tenure, earning types, configurations, and policies as existing system primitives. The new flow extends them with assignment, employee mobile requests, employer approvals, wallet adjustments, and reporting.

1
Create Policy

Method, tenure configuration, earning-type overrides

2
Assign Policy

Apply policy to employees or worker groups

3
Mobile Request

Employee raises vacation pay request from mobile

4
Approval

Employer reviews and approves the requested amount

5
Wallet Adjustment

Add or correct vacation pay amounts when needed

6
Reporting

Liability, balances, escalations, and exports

Step 1 · Create

Create Vacation Pay Policy

Admins create or update a vacation pay policy using the existing configuration structure. The policy defines the method, tenure configuration, and earning-type behavior required for Canada-specific vacation pay calculations.

Admins create or update a vacation pay policy using the existing configuration structure. The policy defines the method, tenure configuration, and earning-type behavior required for Canada-specific vacation pay calculations.

  • End of the flow

  • End of the flow

Step 2 · Assign

Assign Policy

Admins assign the configured policy to employees or employee groups. This makes the vacation pay behavior active for the selected workers based on the assigned policy rules.

Admins assign the configured policy to employees or employee groups. This makes the vacation pay behavior active for the selected workers based on the assigned policy rules.

Step 3 · Request

Employee Mobile Request

Employees can now raise a vacation pay request from the mobile app when they are going on vacation or need the accrued amount. The request clearly shows the available amount and the requested payout.

Employees can now raise a vacation pay request from the mobile app when they are going on vacation or need the accrued amount. The request clearly shows the available amount and the requested payout.

Step 4 · Approve

Employer Approval

The employer reviews the employee’s vacation pay request from the approval page. Once approved, the requested amount can be processed based on the configured payout behavior.

The employer reviews the employee’s vacation pay request from the approval page. Once approved, the requested amount can be processed based on the configured payout behavior.

  • End of the flow

  • End of the flow

Step 5 · Adjust

Wallet Adjustments

Admins can make wallet adjustments when they need to add extra vacation pay, correct an amount, or handle a special payout case outside the regular calculated flow.

Admins can make wallet adjustments when they need to add extra vacation pay, correct an amount, or handle a special payout case outside the regular calculated flow.

  • End of the flow

  • End of the flow

Step 6 · Report

Reporting

Admins can track vacation pay liability, employee balances, escalations, and request activity through reporting views designed for payroll visibility and operational follow-up.

Admins can track vacation pay liability, employee balances, escalations, and request activity through reporting views designed for payroll visibility and operational follow-up.

OTHER SCREENS

Adding vacation policy directly through employee page

In case an employee was missed in the mass assignment or want to change the policy admin can still add/change it through employee section in a valid time window.

  • End of the flow

  • End of the flow

IMPACT

What improved

01

Extended policy setup

Vacation pay behavior now builds on the existing policy structure while adding the missing Canada-specific request, approval, and adjustment flows.

100%

Traceable workflow

Requests, approvals, payouts, and adjustments now have clear states and history.

$$

Liability visibility

Admins can monitor financial exposure through reports and balance-level insights.

Web and mobile

The system supports both admin operations on web and worker self-service on mobile.

REFLECTION

Designing for payroll means designing for trust.

What I learned

Reuse existing primitives *

Tenure, earning types, configurations, and policies were already familiar to users, so the design extended those primitives instead of introducing a new mental model.

Visibility builds confidence

Balance after payout, approval state, wallet adjustments, and liability reporting make the system easier to trust for payroll-sensitive decisions.

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