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Holiday Entitlement Automation - Leavers & 1-Year Service

Abe Del Villar

Is there a way for the system to automatically recognise the leaver and feed their accrued holiday balance into payroll, rather than requiring us to send a separate email to Bureau team each time. 

Also, employees receive an additional holiday once they complete one full year of service. The additional day should be added to their next holiday entitlement. The holiday year runs from Apr to Mar. Is there an automated option such as a rule/tick box to say that after the 12 months of service, an additional day should automatically be added instead of us emailing the bureau team.

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Cris Somodio

Hello Abe,

 

Thank you for your enquiry on the Customer Success Portal. These are both great questions, and the good news is that Fourth Workforce Management does offer built-in functionality to address each of them.

 

Question 1: Automatic Final Holiday Pay for Leavers

Yes, there is a configurable feature called Auto Pay Final Holiday Pay that allows the system to automatically calculate and process the remaining accrued holiday balance for an employee when they are terminated, without the need to email the Bureau team separately each time.

 

This feature can be enabled under:

  • Payroll > Administration > Global Settings > Holiday Pay

Within this section, you will see an option labelled Auto Pay Holiday for Final Payroll, which offers the following settings:

  • Don't Pay Final Holiday Pay: The functionality is switched off and no automatic calculation occurs.

  • Do pay holiday automatically but don't inform the user on the termination details page: The system will automatically calculate and pay the remaining holiday balance as part of the leaver's final payroll run. The person entering the termination details will not see an on-screen notification, but the payment will process in the background.

  • Do pay holiday automatically and inform the user on the termination details page: The system will calculate the final holiday pay and display a notification to the administrator on the Termination Details screen, providing visibility of the amount being paid.

 

Once enabled, whenever a termination date is entered for an employee, the system will calculate any outstanding accrued but untaken holiday and include it as a payment on their final payslip. This removes the need for a manual email to the Bureau team for each individual leaver.

 

Please note that a calculated payment type called "Final Holiday Pay" must be set up under Payroll > Administration > Payment Types for this functionality to work. If this payment type does not already exist on your portal, please raise a ticket with Fourth Support and we can assist with the configuration.

 

Question 2: Automatic Additional Holiday Day After 12 Months of Service

Yes, Fourth WFM supports this through the Incremental Holiday feature. This allows you to configure automatic increases in holiday entitlement based on an employee's length of service.

The configuration is managed at Job Title level:

  • Navigate to HR > Company Admin > Job Titles > select the relevant Job Title > Edit Default Holidays

Within this screen, you can set up a Holiday Increment Scheme that defines additional days of entitlement at specific service milestones. For example, you can configure the system to recognise that after 1 full year of completed service, the employee's total annual holiday entitlement increases by 1 day (from 28 to 29 days). The increment is automatically applied based on the employee's start date and anniversary, without any manual intervention or communication to the Bureau team.

The system supports two increment calculation methods:

  • Increment based on Employee Anniversary: The additional day is added from the employee's work anniversary date.

  • Increment based on Employee Anniversary + fraction from Anniversary date: The additional day is pro-rated from the anniversary date through to the end of the holiday year.

Since your holiday year runs from April to March, the increment will align with whichever method you choose relative to the employee's anniversary date falling within that April to March cycle.

 

For reference and detailed configuration guidance:

If you need assistance enabling either of these features on your portal, please raise a support ticket and our team will be happy to help with the setup.

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