Question around how the system calculates holiday
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Hi {@0053z000008yUaqAAE}
Just to clarify how the system calculates holiday for flexible employees.
The global setting to select 12 or 26 weeks is only used to calculate the average days worked and therefore entitlement. (Average days worked x 5.6 week)
Holiday pay (daily rate) is always calculated on the last 12 weeks earnings in line with HMRC regulations.
The below article may be helpful.
If an employee is has had 2 weeks unpaid leave, then the amount the employee has earned in the last 12 weeks will be lower and this will reduce the daily rate paid for this holiday.
Yes the system will pay a daily rate less than their contracted hours if they haven't worked their contracted hours.
If you wish to guarantee holiday pay at a set number of days and based on contracted hours, you may wish to consider changing these employee to Full Time.
The holiday day rate will then be based on the Job Titles FTE. 4 days 40 hours = a day rate of 8 hours.
However if the employee works more than their contracted hours this will not be included in the holiday calculation .
I would suggest discussing this further with a Solution Consultant from Fourth in an Ask Fourth session as there are pros and cons.
Hope this helps
Debbie
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Hi Tobias,
I hope the above answer and the link was useful, please let us know if you have any more questions.
Many thanks,
Sophie.
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