---
title: "Manage year-end balances and carry-overs"
description: "December is coming: you must decide which balances carry over, get paid out or are lost. Illizeo automates the calculation, generates statements and warns employees before the deadline. - **Reading time**5 min - **Level**Advanced - **Last updated**May 2026 - **Module**Absence…"
url: "https://illizeo.com/en/centre-aide/manage-year-end-balances-and-carry-overs/"
updated: "2026-09-21"
category: Absence Management
---

# Manage year-end balances and carry-overs

December is coming: you must decide which balances carry over, get paid out or are lost. Illizeo automates the calculation, generates statements and warns employees before the deadline.

- **Reading time**5 min
- **Level**Advanced
- **Last updated**May 2026
- **Module**Absence Management

## Step-by-step

1. ### Review year-end settings

   For each type, check: carry-over rule (yes/no, capped at X days), deadline, post-deadline action (loss, pay-out, transfer to time-off bank).
2. ### Run the simulation

   The *Simulate closure* button lists per employee what will be carried, paid out or lost. Avoids surprises.
3. ### Communicate to employees

   Illizeo sends a personalised email 30, 15 and 7 days before the deadline with remaining balance and recommendations.
4. ### Execute the closure

   On December 31st (or custom date), Illizeo applies rules: new balances initialised, old ones carried or lost, pay-outs sent to payroll.

## Common policies

| Policy | Benefit | Risk |
| --- | --- | --- |
| Full carry-over | Employee flexibility | Heavy accounting provision |
| Capped carry-over (5 days) | Common balance | End-of-year pressure |
| No carry-over (use it or lose it) | Simple accounting | Employee dissatisfaction |
| Auto pay-out | Appreciated | Immediate cost |
| Time-off bank transfer | Long-term capitalisation | Bank setup required |

## FAQ

   Can I differ per profile?

Yes, you can set rules per contract, department or country.

   Are N-1 balances protected?

Yes. Once carried, they are kept per your policy (e.g. lost on May 31 in France).

   Is the time-off bank managed?

Yes, Illizeo offers a time-off bank module with caps, withdrawals, monetisation. Available on demand.

   How do I undo a closure?

As long as no payslip has been issued, HR can *Reopen the period*. Beyond that, contact support.

### See the Performance module

Learn to model review cycles.

[See all Modules](/en/centre-aide/?cat=modules)

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