Question around how the system calculates holiday

Tobias Collison

• August 05, 2019 00:00

  The system is set to look back the past 12 weeks average, based on this setting:     - If an employee if off on unpaid leave for 2 weeks, then they take holiday or go off sick will the system reduce the average daily rate? or will it pay their minimum contracted hours per day ? - Does the system ever pay less daily rate then their normal contracted hours or is their an override that recognises this ?  

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  Debbie Thomas

  • August 05, 2019 00:00

  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.

  https://fc.force.com/customer/s/article/WFM-Understanding-Holiday-Allowance-and-Pay-for-Flexible-Employe

   

  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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• 

  Sophie Waters

  • August 09, 2019 00:00

  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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