The Flexible Holiday Calculation is changing to exclude periods where employees have an active Furlough status.
Release date: 27th August 2020
Reason for the Change
This change is required because of the way the Flexible Holiday Calculation looks for any worked hours within a rota. This will then ensure that employees’ holiday allowance and rates are not impacted as a result of them being furloughed.
All HR & Payroll customers.
In April 2020, the Flexible Holiday Calculation legislation changed to use data from the past 52 weeks to calculate an employee’s holiday allowance and rate.
Employees who are working part-time as part of the Flexible Furlough scheme must retain their usual holiday allowance and rate.
Details of the Flexible Holiday Calculation change can be found here.
Where the calculation uses the previous 52 weeks, this will now skip any weeks in which:
- An employee has an active furlough and has hours within the rota
- An employee has a furlough status starting on any day within the week
- An employee has a furlough status ending on any day within the week
Other than the way in which the calculation identifies the weeks to include, it has not changed.
Average Days Per Week
The calculation looks back over the past 52 weeks that the employee has worked (without an active furlough status) to establish the total days worked within the period:
(total number of days worked in period) ÷ (number of weeks in period)
Calculation – Days Allowed
The ‘days allowed’ shows the number of available holiday days an employee has in the current holiday year:
(average days per week) x (the number of weeks holiday allowed for employees) x (days difference between employee’s start date and end of holiday year ÷ days difference between holiday start date and holiday year end date)
Holiday Daily Rate
The calculation used for the holiday day rate is:
(holiday days taken in current period) x (average summary rate) x (hourly rate of pay)
Average Summary Rate Calculation
((total pay over previous 52 weeks (excluding active furlough weeks)) ÷ (number of days worked over previous 52 weeks (excluding active furlough weeks))) ÷ (hourly rate of pay)