/
Pay Batch - Leave Accrual Stage for Holiday Reform

FastTrack360 Version 12 Online Help

Pay Batch - Leave Accrual Stage for Holiday Reform

Description

From January 2024, any holiday year that starts on or after 1st April 2024, should apply the following rules:

  • To accrue holiday entitlement when a payee is sick or on a child related absence based on an average of the previous 52 weeks leave

    • Weeks that are not worked are included in the 52 week average

    • Weeks where a payee is partially sick are not included in the 52 week average

    • Weeks that include a child related absence or off sick for a whole week are not included in the 52 week average

  • To round down to the nearest hour if less than 0.5 hours accrued or round up if greater or equal to 0.50 to the next hour.

When a payee has a sick absence request and is processed in a pay batch, at the Leave Payment stage, the system will determine the average accrual and apply the accrual for that absence within the Adjustment field. If the payee is on a child related absence, this determination will occur at the Leave Accrual stage.

It may be the case that if a payee is sick for less than 4 days, there may not be a payment of SSP. However, the payee would still be entitled to accrue an average. If the payee has also worked in that period, the system will off-set the average against the hours worked, so that they do not accrue above their average.

Benefits

Allows for automated determination of holiday accrual when a payee is sick or on a child related absence.

Configuration

In the Leave > Maintenance > Leave Type configuration screen. Find your leave type for your holiday entitlement and go to the Accrual Rule section of the Leave Set:

The following fields have been added to the configuration. These rules can be added to your existing accrual rule without having to create a new validity period for the rules:

Field

Description

Rules

Field

Description

Rules

Apply to Sick

Check this field to activate the average accrual when a payee is sick.

The field will be defaulted to unchecked. When unchecked, it will not determine the average accrual when a payee is sick.

Apply to Child Related Leave

Check this field to active the average accrual when a payee is on a child related absence.

The field will be defaulted to unchecked. When unchecked, it will not determine the average accrual when a payee is on a child related absence.

Number of Weeks for Average

An entry should be made to specify how many weeks the average entitlement should be determined by. For the UK, as of the date of when the legislation was released is 52 weeks.

This must be entered if either Apply to Sick or Apply to Child Related Leave is checked on.

When Apply to Sick is selected, it will be defaulted to 52 but can be changed.

Up to Weeks

If you need to limit this to a number of weeks that the average should go back to, enter a value here. For the UK, as of the date of when the legislation was released, this is limited to 104 weeks. If a limit is not applied, the system will go back beyond 104 weeks to obtain the 52 week average.

This field is optional to enter.

When Apply to Sick is selected, it will be defaulted to 104 but can be changed.

Worked/Concurrent Weeks

The current rules for the new legislation count concurrent weeks. If in the future this is changed to be worked weeks, an additional option will be added.

This must be entered if either Apply to Sick or Apply to Child Related Leave is checked on.

When Apply to Sick is selected, it will be defaulted to Concurrent.

Number of Weeks Divisor

The HMRC guidelines suggest that the total of hours collected within the 52 week average is divided by 46.4 to exclude leave weeks. However, this divisor value suggested is not stated in the legislation and is only a suggestion made by HMRC.

When Apply to Sick is selected, it will be defaulted to 46.4 but can be changed.

Exclude Weeks Containing Pay Codes

If a payee is sick or on a child related absence, those weeks containing that absence should be excluded from the average calculation. You need to select the pay codes to specify that are for these types otherwise those weeks units will be included to obtain the average.

This is optional. If left blank, weeks containing those pay codes will be included in the hours used to determine the average accrual.

image-20250205-122522.png

 

 

 

Related content

Classification-Public