This article describes the differences between Flexible and Casual Holiday, along with an explanation of the Flexible Holiday Scheme.
For more information on the Supreme Court’s recent ruling on casual holidays please see WFM UK: Supreme Court Rules 12.07% Holiday Calculation as Unlawful
Flexible Holiday Scheme
Flexible Employee Definition
A Flexible employee is an hourly paid employee who works regularly but does not have a standard weekly working pattern. Flexible employees often do not have a minimum or a maximum number of hours which they are required to work in a week. They are often scheduled to work dependent on the demands of the business.
- As such, their hours of work vary from week to week. Flexible employees are set up by selecting Flexible in the Employment Status field within the Employment Details settings
Fig.1 - Flexible Employment Status
Flexible Holiday Scheme Explained
As working hours/shifts vary for Flexible employees from week to week, the Flexible Holiday calculation allows Holiday calculations for Flexible employees to be based on hours worked over previous weeks.
- Holidays for Flexible employees are calculated by considering the past 52 weeks worked and calculating the average number of days and hours worked within these weeks
- This average number of days and hours worked is then used to calculate the rate and entitlement for Holidays for Flexible employees
Please Note: All Flexible Holiday is calculated and displayed in days, and therefore must also be booked and taken in days.
Casual Holiday Scheme
Casual Employee Definition
A Casual employee is a rota-paid employee who works on a very ad-hoc basis. A Casual Employee does not work regularly and does not have a standard weekly working pattern.
Casual employees often have no contractual obligation to work or to be provided hours and are often referred to as 'seasonal' staff.
Casual employees are set up by selecting Casual in the Employment Status field within the Employment Details page
Changing an employee’s Employment Status to Casual will have a direct impact on how Holidays are calculated for them.
Fig.2 - Casual Employment Status
Casual Holiday Scheme Explained
The Casual Holiday scheme uses a calculation that allows an employee to accrue Holiday per hour of work that they complete. The Casual Holiday allowance is categorised in hours and not in days.
As opposed to all other Holiday options in the system, Casual Holiday is not based on length of service and does not expire based on a specified Holiday year-end.
- Casual Holiday is calculated by assigning 12.07% of every hour worked to the employee’s Holiday accrual, meaning that the more a casual employee works, the more Holiday hours they will accrue
Please Note: Casual Holiday hours are requested and booked in the same manner as all other Holiday options available in the system.
Differences Between Flexible and Casual Holiday
The table below lists the key differences between the Flexible and Casual Holiday Schemes. Further information on the calculations within the table is detailed further below.
Please refer to WFM HR: Flexible Holiday Scheme and Calculations Explained for a full overview of the functions provided within each scheme.
|Holidays shown as||Days||
|When can employment status change occur?||If moving from full or part-time employment to flexi, the effective start date should be in line with the rota start date||Casual employment status change should occur at end of the current holiday year so that holidays already earned are taken prior to the change|
|Holiday expiry||Holidays expire at end of the holiday year||Holiday hours do not expire|
|Days allowed||(Average days per week) x (the number of weeks holiday allowed for a flexible employee)||Days allowed is not used in the casual holiday scheme|
For those employees who started before the start date of the current holiday year:
Allowance x (days difference between holiday year start date to current date/days difference between holiday year start date and end date)
For employees who started after the holiday year start date:
Allownace x (days difference between employee start date to current date/days difference between employee year start date and holiday year end date)
|Calculated at 12.07% of every hour worked|
|Actual Holiday Pay Rate||(Average summary rate) x (Hourly rate of pay)||(Holiday hours taken) x (hourly rate of pay)|
The Days Allowed field details the number of Holiday days which the employee has available to take in the given Holiday year. This field is only used in the Flexible Holiday Scheme and is not used within Casual Holidays.
Days Allowed = (Average Days per Week) * (The Number of Weeks Holiday Allowed for a Flexible Employee)
Please Note: Average Days per Week excludes Lieu Days, but includes Statutory Days and all paid Holiday days.
The calculation detailed below is used to derive the 'Days Allowed' field for Flexible employees.
Days or Hours Accrued
The 'Days or Hours Accrued' field displays the number of Holiday days or hours that an employee has earned up to the current date. The Days or Hours Accrued field is used in both Flexible and Casual Holiday Schemes, but is calculated differently.
The following calculation is used to derive the Days Accrued field for Flexible employees:
Number of Days Worked in Current Holiday Year = (Number of Weeks Employed in Current Holiday Year) * (Average Days per Week)
Holiday Accrual = (Number of Days Worked in Current Holiday Year) * (Default Weeks of Flexible Holiday entitlement) / Number of Weeks in Current Year (52)
Please Note: Number of Days worked in the current year includes Holiday days, Statutory days and Absent days.
The following calculation is used to derive the Hours Accrued field for Casual employees:
Hours Accrued = (Hours Worked) * 12.07%
Actual Holiday Pay Rate
The Actual Holiday Pay Rate is calculated differently for both the Flexible and Casual Holiday Schemes.
The following calculation is used to derive the Actual Holiday Pay Rate for Flexible employees:
Average Summary Rate = ((Total Pay over Previous 52 Weeks) / (Number of Days Worked Over Previous 52 weeks)) / (Hourly Rate of Pay)
Please Note: The Number of Days Worked and Total Pay Over Previous 52 weeks excludes Holidays, Lieu days and Statutory days, but does include Absent days.
Actual Holiday Pay Rate = (Holiday Days Taken in Current Pay Period) * (Average Summary Rate) * (Hourly Rate of Pay)
Please Note: The average summary rate used in the Actual Holiday Pay Rate calculation will use the previous 52 weeks total pay and average days worked from the actual Holiday date booked.
The following calculation is used to derive the Actual Holiday Pay Rate for Casual employees:
Actual Holiday Pay Rate = (Hours Taken in Current Pay Period) * (Employee’s Hourly Rate of Pay)