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Additional Holiday Pay : Fourth Calculation Queries


1 comment

  • Alison Barlow

    Hi Oliver Proctor

    I'm not entirely sure which calculations are being questioned as we have 2 within People System which refer to the 52 weeks. 

    • The calculation of statutory holiday pay over 52 weeks was released an in place in April 2020.  The release notes can be found:

    • The calculation for 'Additional Holiday Pay over 52 weeks was released quite recently.  The release notes can be found:

    Hopefully the detail below will answer the queries

    1. If hourly employees work over their contracted hours, the hours will be recorded within the schedules.  These are automatically included in the flexible holiday calculation so don't need to be addressed separately in terms of the Additional Holiday Pay functionality. 
    2. The 52 week holiday calculation will exclude any weeks where an employee is not paid, due to parental leave, sickness etc.  It uses full weeks in it's calculation
    3. If this query is in regards to the standard flexible holiday calculation, there is a calculation that runs every day according to the data submitted within the rota.  If it's in regards to the additional holiday pay calculations, the standard option will look at the weeks prior to the current pay period.  It is possible to include the current pay period which will look at the weeks within the current pay period for the specific payments flagged and includes this in the additional holiday pay amount.
    4. The 'include current period' is only for the additional holiday pay calculation.  it will look for any flagged payments in the current period.
    5. There are two settings within Fourth for hourly rate employees - Flexible and Casual.  All Employees flagged as Flexible will have the 52 week average calculation.  All Employees flagged as Casual will have a different calculation which bases the holiday on 12.07% of every hour worked (We are anticipating that this holiday calculation will be removed officially removed from legislation in the coming years, however HMRC have not yet announced this).

    Hopefully this has answered all queries.

    Kind Regards

    Alison Barlow



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