This help guide will show you how to create holiday entitlement schemes incorporating Starter, Service and Leaver Entitlement details.

Contents

• Introduction
• View Holiday Entitlement schemes
• To create a Holiday Entitlement scheme
• Service Adjustment Calculation Timing
• Holiday Entitlement Starter Entitlement
• Holiday Entitlement Service Entitlement
• Holiday Entitlement Leaver Entitlement

Introduction

The Holiday Entitlement scheme is used to record the total amount of holiday that an employee with that entitlement would be entitled to and to also record the holiday that someone starting or leaving part way through the year would receive.  The Holiday Entitlement will also record any service related holiday days increments that an employee may receive (such as an increase after 5 years’ service).  The Holiday Entitlement scheme is related to a Holiday Year.

Holiday Entitlement is typically recorded as the full time equivalent (FTE) amount, as there is a Pro Rata Holiday Entitlement tool to calculate part time worker entitlements.  For more information on Pro Rata Holiday Entitlement please refer to the related help guide.

View Holiday Entitlement schemes

Go to the following area:

• Latest menu: Data Management > Code Tables
• Pre-2025 menu: System > System Administration > Code Tables

From the Group choose Absence and then select Holiday Entitlement

The screen will display all the existing codes.

To create a Holiday Entitlement scheme

• Click Insert New Record
  
• Enter the Code and add a Description for the entitlement scheme
• Choose the Service Basis that holiday increments will be based on: ie Start date or Continuous Start Date (these start dates can differ: eg if you have employees with previous TUPE service from another employer, who transferred to your business)
• Choose the Holiday Year that the entitlement scheme will be attached to. The Holiday Year determines the start and end dates for the year period (see the related help guide)
• Choose whether the holiday is to be recorded and calculated in Days or Hours. Hourly recorded holiday entitlements would normally be associated with employees that work an irregular number of hours per day
• User Entered Holiday Entitlement? can be enabled if you wish to create a scheme where the holiday entitlement is manually entered onto an employee’s record via:
  
  • Latest menu: Holidays & Absence > Absence Summary
  • Pre 2025 menu: People Admin> Time Management> Absence Summary Totals
• There is a default User Entered Code already set up for this type of scheme (in Days) so you may wish to amend that scheme or add another one for Hours (if needed).  Enabling this slider will make the Starter Entitlement and Service and Leaver Entitlement Tabs disappear as they are no longer relevant because amounts can vary per employee.

• Includes Public Holidays determines whether the number of holiday days in the scheme includes the bank holidays and should therefore be included in the number of days to be deducted, when a holiday spans over a bank holiday (eg statutory entitlement would be 28 days rather than 20 days if including public holidays)
• Service Adjustment Calculation Timing determines when a service related holiday change should be applied to the entitlement (eg an increase after 5 years’ service) 
• Where it is permitted to carry forward holiday during the Holiday Year update, the BF Deadline (brought forward) can be used to set a time limit on how long employees have to use that holiday
• For example you may allow employees to carry forward up to 5 unused holidays during the holiday rollover, but they must take them within 3 months of the start of the Holiday Year
• The BF Deadline can be set in Days, Weeks or Months.  Adding a number and selecting the relevant timeframe will then calculate the deadline date based on the linked Holiday Year Start Date

•  Click Update to save the Holiday Entitlement

Service Adjustment Calculation Timing

The Service Adjustment Calculation Timing determines when service related holiday accruals are applied based on the Service Basis field selection. Definitions for each option associated with this dropdown are explained below:

• Full amount in the next holiday year – the full service related increase will be applied when the holiday year is rolled over following the anniversary, irrespective of when the additional entitlement is due in the year
• Pro-rated amount at the start of the holiday year – the pro rata value of leave (from their anniversary date to the end of the holiday year) will be applied at the start of the holiday year, meaning the employee has full visibility of their entitlement to plan ahead
• Pro-rated amount during the holiday year – the pro rata value of leave will be applied during the holiday year at time of the Service Basis (on their anniversary date), meaning the employee does not receive an increase before it has been accrued but won’t have visibility of the increase until they reach their anniversary

Holiday Entitlement Starter Entitlement

• Once the Holiday Entitlement scheme has been coded and saved then the tab for Starter Entitlement will be available to enter data into. This is where you record the holiday calculation amounts for starters joining the company in the middle of a holiday year, who will therefore only receive a portion of holiday entitlement
• At this point there are two ways in which the Day and Month columns can be populated
• The month number relates to the month of the year ie 1 = January , 2 = February

• The day represents the day in the month from which calculations should take place with respect to the starter entitlement

Option 1:

• Click Batch Enter. This will bring across all the month and day references that were created in the coding of the Holiday Year that is attached to the Holiday Entitlement

• You will be alerted that any existing starter entitlements will be cleared – click Yes

• The Day and Month values will be populated and each line just needs to be edited to reflect the Entitlement value at that point in the year

Option 2

• Use the Add new record button to record line by line the Day, Month and Entitlement
• The example below shows if someone started on the first day of the year they’d get the full entitlement, it is then reduced pro-rata on the 15th of each month during the year.

Holiday Entitlement Service Entitlement

• Click on the Service and Leaver Entitlement tab
• Use Add new record to enter any changes in entitlement according to service. Eg the image below shows an increase after 5 and 10 years’ service
• The Entitlement Accrual Calculation refers to how the holiday accrued to date will be displayed for people receiving a pro-rata service increase in their anniversary year.  You can choose between Per Day, Per Month or Per Leaver Entitlement (see next section)
• Save changes

Holiday Entitlement Leaver Entitlement

• This works in reverse to the starter holiday entitlement, so will increase throughout the year in line with the proportion of the year worked
• Click on the Service and Leaver Entitlement tab
• The Leaver Entitlement needs to be recorded against each of the service levels, as this will vary depending on how much overall leave an employee is entitled to.  Click on Leaver Entitlement
• There are again two ways in which the Day and Month columns can be populated:

Option 1:

• Click Batch Enter.  This will bring across all the month and day references that were created in the coding of the Holiday Year that is attached to the Holiday Entitlement if you set this up
• You will be alerted that any existing leaver entitlements will be cleared – click Yes
• The Day and Month values will be populated and each line just needs to be edited to reflect the Entitlement value required at each calculation point

Option 2:

• Use the Add new record button to record line by line, the Day, Month and Entitlement
• The example below shows someone with no service increments (0 years) who will accrue holiday monthly on the first of each month.  A person leaving in month 4 of the year will have accrued 7.5 days.

You will need to set up a Holiday Entitlement and repeat the above steps for each holiday scheme your company has.