Description
When a payee has passed 12 worked weeks, if the client has better holiday accrual, the payee is entitled to receive the increase in entitlement. There are different ways that holiday accrual rates can occur in the UK. This could be based on accruing of 12.07% on hours worked or it could based on a fixed weekly accrual. The minimum holiday entitlement of accrual is 12.07%. The formula for this is 5.6/46.4 (being 52 weeks minus 5.6 weeks). Therefore, if the agency’s client gives their employees 6 weeks holiday entitlement, the accrual would be 6/46 = 13.043. This accrual would then be used for the weeks the payee is in parity. If the payee loses parity e.g. they change jobs or the clock is reset due to absence, the accrual would need to be reverted.
The pay batch process has been enhanced to:
Automatically apply the enhanced holiday override rate entered against the job order when the payee has reached parity.
If the payee has had a timesheet reversed and this would have meant the payee falling out of parity for a timesheet week(s), the pay batch process will automatically adjust the payee’s accrual entitlement. It will also adjust any holiday pay that has been paid that used that week’s pay rate as part of the average rate.
If the enhanced holiday override rate is updated (either by the value being amended or entered), the system will automatically apply the adjustment to the holiday accrual for those weeks they were at parity for that job.
If a manual item is entered, there will be no job order for it to refer to and so the default rate that is against the payee’s leave type will be applied. It will be necessary to manually adjust the accrual in that circumstance.
The AWR Enhanced Holiday Accrual Rate is only applicable to those payees who do not have Rolled Up Holiday. Should those payees who have rolled up holiday reach parity, the percentage rate will need to be amended against the payee’s rolled up holiday percentage.
Benefits
Manages the application of enhanced holiday accrual with minimal interaction.
Configuration
The enhanced holiday override accrual rate should be entered on the job order.