Managing wage costs is a critical element in ensuring that businesses can be competitive and profitable, whilst providing excellent customer experiences.
Automated Holiday Pay will provide much greater accuracy in your payroll projections, allowing you to budget more effectively.
How It Works
When an employee is on annual leave our rota software will calculate their projected weekly holiday pay entitlement based on the average weekly hours the employee has been scheduled to work over the previous 52 weeks rota history. This being in line with current HMRC guidelines.
If you are a new business to the service and you do not have a 52-week rota history, our rota software will simply calculate the average weekly hours from the weeks available.
e.g. If an employee works an average of 20 hours per week and is paid a gross hourly rate of £10 per hour, our rota software will calculate their weekly holiday pay at £200. The software will also assign a daily cost on a pro-rata basis against each day the employee is on paid leave.
Holiday Pay for a Single Day Paid Annual Leave
If an employee is taking a single day off on paid annual leave, our rota software will calculate holiday pay for that day based on that employees average daily working hours over the preceding 52-week period (or available weeks) .
e.g. If an employee works an average 20 hours per week across 2 x 10-hour shifts each week, our rota software will assign 10 hours of holiday pay for that single day off.
Holiday Pay for a Part Day Paid Annual Leave
If an employee is taking part of a day off, the system will calculate holiday pay as the difference in hours between the start time and the end time, provided it does not exceed the employees average daily working hours.
Holiday Pay for Employees Assigned to Two or More Rotas
In circumstances where an employee ordinarily works across more than one rota, holiday pay costs are assigned to each rota in proportion to the average hours the employee works on each rota.
We do this to ensure that rota costs and budgets are as accurate as possible.
Exclude Automatic Holiday Pay
If you wish for these costs and hours not to be included in your rota budgets you can de-activate this feature by following these steps:
Click on "Hello, [First Name]" in the top-right corner
Go to Settings
Select Rota Settings
Toggle the option to "Exclude Paid Time Off Costs"
