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HomeHomeSupportSupportAbsencesAbsencesHoliday Accrual and Part time employeesHoliday Accrual and Part time employees
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28/09/2008 18:25
 
Mike Sendrove
7th Level Poster

Joined: 09/08/2007
Posts: 32

Hi:

Can you explain how the holiday accrual works please? And how can I tell 12pay that one of my employees is part time, and so is not entitled to, nor should accrue as quickly, as much holiday as a full time employee? I can see the check boxes for SSP qualifying days, but I can't find any way to control the holiday accrual rate.

 

Thanks,

Mike
 
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28/09/2008 21:07
 
12Pay Support
2nd Level Poster

Joined: 13/02/2007
Posts: 1336

Mike, You enter the number of holiday days each staff-member is entitled to per year on the HR tab of the employee. That can be different for each employee so if part-timers are entitled to fewer days you just specify how many. You need to specify the holiday year start date on the advanced tab of the payroll form.

If you have more casual or variable employees accruing holiday according to number of hours worked you enter the accrual rate in the box on the HR tab and leave the annual entitlement blank. Leave the accrual rate blank in order to accrue holiday hours @10.2%, which is the statutory minimum. For employees of that type the Annual Hours Summary report on the payroll reports list shows in each calendar month the number of hours worked, the number of holiday hours taken (if you enter holiday hour payments on the HOLIDAY code) and the number of hours accrued less the holiday hours taken.

12Pay Support
 
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28/02/2009 11:35
 
Mike Sendrove
7th Level Poster

Joined: 09/08/2007
Posts: 32

I've just reread this - thanks, it makes a bit more sense the second time round.

However - I think I've been handling our employees' holidays incorrectly -

Employee 1 works 40.5 hours (over 5 days) every other week and 32.5 (4 days) on other weeks. How would I set up 12pay holiday in this case? And what statement should be put in the written statement of employment?

Employee 2 works 19.5 hours (over 3 days but I don't guess that's relevant) most weeks, and an extra day (8 hours) every so often. Again - how should I set up 12pay please?

At the moment, both employees have an annual entitelement figure. If I delete this and just use the accrual method to work out holiday, am I correct in assuming that 12pay will make the necessary changes and also backdate for the year?

Thanks,

Mike
 
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28/02/2009 13:37
 
12Pay Support
2nd Level Poster

Joined: 13/02/2007
Posts: 1336

I'm afraid we can't comment on what should go in the WSE. That is a matter of employment law that we wouldn't really be experts in.

The annual entitlement method might still be fine... if you and the employees are happy with it and if it ends up that the notional hours that they're taking off (the number of paid days multiplied by the hours per day) are higher than 10.2% of the hours that they're working. Less than that would be illegal.

If you do switch to the accrual rate method everything should work fine as long as you've been recording how much time they work (in hours) as you pay them each week. You can check this by looking to see if the annual hours summary report looks sensible at the moment.

EDIT: "How should I set up 12Pay please?" There is no black art. Just record the number hours that you pay each week.

12Pay Support
 
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09/04/2009 22:19
 
Mike Sendrove
7th Level Poster

Joined: 09/08/2007
Posts: 32

I've just reread your reply and I realised that for our part time employee I should have left everything blank and let 12pay work out the accrued holiday. Can I apply this retrospectively? if I set both entitlement and accrual rate to 0 and then update employees accrued holiday, then it doesn't give her any accrued holiday.

Also, how can I view the annual hours worked summary?

 

Thanks,

Mike
 
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09/04/2009 23:05
 
12Pay Support
2nd Level Poster

Joined: 13/02/2007
Posts: 1336

If you're working on an hourly accrual basis you leave the entitlement blank and the accrual rate blank. In that situation the greyed out fields on the HR tab become irrelevant. They're for staff, not hourly workers.

The annual hours summary report can be run from the payroll form.

12Pay Support
 
New Post
11/04/2009 13:51
 
Mike Sendrove
7th Level Poster

Joined: 09/08/2007
Posts: 32

Hi:

So the hours worked summary looks sensible. However - when I remove the entitlement and accrual figures from the HR tab for the employee in question, the accrued to date changes to zero. That means that taking into account the 2 days holiday that she had on 1/1 and 2/1 this year, her remaning holiday goes negative. Do I need to work out remaining holiday manually using the hours worked report? I'm sure I don't but I just don't know how to deal with it.

Also, I can't seem to find a way to enter holiday hours rather than days. How does 12pay know how many hours make up a working day?

I'm sorry to seem so stupid - what is it that I don't understand?

At the moment, the part time employee has 14 days entitlement (she works 2.5 days (20 hours) a week and 28*2.5/5 = 14). From next month she will be working 80% every other week, and 100% for the weeks in between. What shall I do? Do I simply work out the total number of days that she will be working per year as a percentage of the full working year and change the full allowance accordingly? Or is there something that I'm  missing in 12pay?

Thanks,

Mike

 
 
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11/04/2009 14:41
 
12Pay Support
2nd Level Poster

Joined: 13/02/2007
Posts: 1336

Also, I can't seem to find a way to enter holiday hours rather than days. How does 12pay know how many hours make up a working day?

You enter them by paying the employee using the Holiday Hours payment. Once you've got a variable hours employee thinking about holiday in days doesn't make so much sense. Just make sure that you pay them the holiday pay and they take a broadly equivalent number of days off. BUT...

At the moment, the part time employee has 14 days entitlement (she works 2.5 days (20 hours) a week and 28*2.5/5 = 14). From next month she will be working 80% every other week, and 100% for the weeks in between. What shall I do? Do I simply work out the total number of days that she will be working per year as a percentage of the full working year and change the full allowance accordingly? Or is there something that I'm  missing in 12pay?

This might be the better approach in your situation. Forget about the whole holiday hours and accrual thing in the software, which really is structured much more for very casual variable-hours worked by workers in (for example) the catering or cleaning industries, and forget about the annual hours summary report. Just enter the number of paid holidays that are included in the employees salary as their annual entitlement (agree the total number of days the employee can take with them, based on the days in the old working pattern and in the days in the new working pattern pro-rata'd through the holiday year), and record them as absences when they're taken, just like any other staff member.

12Pay Support
 
New Post
11/04/2009 15:59
 
Mike Sendrove
7th Level Poster

Joined: 09/08/2007
Posts: 32

As usual, thanks for such a speedy response.

I think I now understand how it works. For employees whose hours are constant, we can think about holiday in terms of days. However, I've decided, on consultation with both of our employees, who are employed on permanent contracts but whose hours do vary from week to week, that we will run the system of holiday accrual based on hours. I also understand that holiday pay now has to be specified in weekly variations.

Thanks for your patience on this - at long last I think I understand!!!

Thanks again,

Mike
 
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