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Will setting a furlough status freeze av ...

Jennifer Sharrock-Milner
Will setting a furlough status freeze average working hours for holiday pay calculations ? Otherwise holiday pay will reduce if average working hours reduce while the employees are furloughed. Also, will it freeze probation periods?

I understand that setting a furlough status for employees enables us to pull off reports to help with furlough payment calculations, which sounds very useful, however, we already designed and used our own spreadsheet for this purpose and will not need to use the furlough status functionality for payroll purposes (because we did so prior to your release).

 

So my question is more about what the furlough status does in the HR module. Does it freeze probation periods or more importantly, average hours worked calculations?

 

If holiday pay calculations are based on hours worked in the last 52 weeks, and an employee has been furloughed for (let's say) three months, will their holiday pay be less than if they had not? It seems rather unfair to include 12/13 weeks of zero hours in the holiday calculation.

 

If I furlough them on the system, will this freeze the holiday year so that calculations are based on the 52 weeks prior to their furlough, or so they are based on the 52 weeks minus the last 12/13 weeks (i.e. 39 weeks) to find the average?

 

Will furloughing them on the system make any difference to what happens with their holiday pay calculations in the future?

 

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Sophie Waters

Hi {@005D000000AEMZlIAP}​ 

 

Thank you very much for your question.

 

The furlough flag in HR doesn’t freeze the holiday year or holiday calculation for flexible employees. However, employees on furlough would not see a reduction in holiday entitlement or holiday pay because the system looks back to the last working week to take the days and hours to calculate the allowance and day rate, therefore the weeks that the employees are on furlough will not be included in the calculation, as there will be no hours scheduled for them, and the system will just look back to the last week they were working and 52 weeks prior to that, in the same way as it would if an employee was on maternity leave or long term absence.

 

With regards to probation periods, unfortunately these are not frozen if someone is flagged as furloughed in HR, this would require manual adjustment when the employee returns to work.

 

I hope this helps.

 

Best,

Lucy

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