Rolled up holiday pay for irregular hours and part-year workers

Karishma Updated by Karishma

For holiday years starting on 1/4/2024 or later, employers will now have the option to process rolled up holiday pay for employees who have irregular hours as well as part year workers.

The % value to use for the holiday pay calculation is set on the pay group in System>Maintain pay groups then select the paygroup and click Modify.. Navigate to the Holiday pay tab where there is a new Rolled up holiday pay entry box, which defaults to the statutory minimum of 12.07%. You can enter a figure that is higher should the contractual entitlement be higher than the statutory minimum, but you cannot enter a figure that is lower.

You will then need to set the employee to rolled up holiday pay on their record.

To facilitate this we have added a new Holiday tab on the employee record with holiday pay fields contained.

Firstly you need to ensure that the Calc. holiday pay field is set to yes. There is a new Rolled up holiday pay field on this view, that to turn on for an employee needs to be set to Yes. (Both of these need to be set to yes to ensure that rolled up holiday pay is calculated and paid out.

This will ensure that the holiday pay is added to the payroll and paid out on each payroll, based on the % set on the payroll group, and whether the Include in average pay for holiday pay checkbox is selected in the pay field relationship.

Three fields have been created to facilitate this:

These are linked via a new addition field relationship.

In a period where the employee hasn’t worked due to an instance of statutory pay (sickness etc.) the period will also have a calculated value paid out for the rolled up holiday pay. This will be based on an average of the pay that has been processed in the 12 month period prior to the absence.

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