Description

The UK determines the holiday pay rate based on the average of 52 weeks of earnings and hours. The current functionality only determined the cost rate based on the pay batch gross pay value / the pay batch quantity and thus the hourly rate would be different to the true cost rate if all holiday pay was to be paid in that period.

To determine the hourly cost rate, the system needs to know how to work this out. A new field has been added into the Leave Type > Accrual rule. This field can be edited at any time.

Open

The availability of this field is where:

• The Leave Type > Set Accrual flag is checked on, and

• The Accrual Type is set to Percentage, and

• Apply To Type is set to Hours

The list of available Rate Types seen in the dropdown is where:

• The Rate Type rule is based on Average Rate, and

• The Start Day setting is either Week Before 1st Day of Leave or Prior Week End

It is suggested that you should use the same rate type that you have configured for your Deduction rule for the leave taken so that it uses the same configuration as you have for the payment of leave. But this selection can be different if you require it to be.

If you do not apply a rule, the average rate will not be determined: it will use the current method of dividing the total gross pay by the hours.

Benefits

Allows for more flexibility to determining the cost rate on holiday accruals.

Configuration

Step	Description

Step	Description
1	Go to: Leave > Maintenance > Leave Type	Open
2	Locate and enter into the leave type that requires the cost rate type to be applied.
3	Go to the Deduction Rule to identify the Leave Rate Type assigned to the Leave Taken element. Exit the screen and then go to the Accrual Rule.
4	Update the Cost Rate Type with the same Rate Type applied in the Leave Taken Rate element.
5	Click ok Save the Leave Type.