Summary
Description
This guide is for information only. If you're unsure of your employee's holiday entitlement, please refer to Business Link's article Know how much holiday to give your staff.
Holiday in hours was introduced to ensure that part-time employees receive the minimum number of holidays allowed under the European Working Time Directive. You can view the Working Time Regulations at http://www.legislation.gov.uk/uksi/1998/1833/contents/made
Resolution
From 1 April 2009 this is the equivalent of 5.6 weeks or 28 days for full-time employees working 5 days a week. The holiday can include bank holidays.
Employees who work irregular hours may have their holidays accrued in hours instead of days or weeks. In Sage 50 Payroll, to use holidays in hours:
- The holiday scheme must be set to calculated entitlement.
- The employee must be paid by the hour in Enter Payments.
- The relevant pay elements must have the Include for Weekly Averages check box selected.
To view the pro-forma, click Summary solution.
Summary solutionSummary;Detailed;null Detailed solutionDetailed;Summary;null
Entitlement specified in days
| A | Specified entitlement (days) |
| B | Specified period (in weeks) |
| C | Hours worked in the specified period |
| D | Working days in the specified period |
| E | Average daily hours (C divided by D) |
| F | Average weekly hours (C divided by B) |
| G | Common hourly denominator (F x 52) |
| H | Annual entitlement (E x A) |
| I | Total hours worked in holiday year |
| J | Employee entitlement (H x (I divided by G)) |
| K | Rounded up to the the nearest 1/4 hour. Plus any days brought forward, carried forward or, additional days |
Entitlement specified in weeks
| A | Specified entitlement (weeks) |
| B | Specified period (in weeks) |
| C | Hours worked in the specified period |
| D | Working days in the specified period |
| E | Average daily hours (C divided by D) |
| F | Average weekly hours (C divided by B) |
| G | Common hourly denominator (F x 52) |
| H | Annual entitlement (F x A) |
| I | Total hours worked in holiday year |
| J | Employee entitlement (H x (I divided by G) |
| K | Rounded up to the the nearest 1/4 hour. Plus any days brought forward, carried forward or, additional days |
Print the pro forma to help you with the following calculation.
There are two different pro formas, one for an entitlement specified in weeks and another for entitlement specified in days.
To find out if the employee's entitlement is in weeks or days:
- Click Company, then click Holidays.
- Select the required holiday scheme, then click Edit.
- From the Entitlement drop-down list, note whether this is set to Days or Weeks.
- Click OK, then click OK.
Step two
Note the following information for the required holiday scheme and enter it into the relevant pro forma:
| Pro forma box | Information required | Available from |
| A | Specified entitlement | Company > Holidays > required scheme > Edit > Entitlement of. |
| B | Specified period | Company > Holidays > required scheme > Edit > Based upon the average hours worked in the. |
| C | Specified period | Company > Holidays > required scheme > Edit > weeks prior to. |
View screenshotnull;null;ss1
Once you have the required information:
- Click OK, then click OK.
To continue with the calculation, click Next
Backnull;null;wiz1,wiz2 Nextnull;null;wiz3,wiz2Step three
Check the holiday accrual date.
NOTE: This is the same date as the process date. The accrued holiday entitlement is calculated as of the process date, so if you want to change the accrual date, you must change the process date.
- Select the required employee, then click Employee.
- Click Employee Record, then click Absence.
- Click Holiday, then click Entitlement.
- Note the accrual date, click OK, then click Close.
Once you have the required information, click Next.
Backnull;null;wiz2,wiz3 Nextnull;null;wiz4,wiz3 Restartnull;null;wiz1,wiz3Step four
For the average hours to calculate correctly, you must check the the process date.
If the average hours are based upon the holiday year
Change your process date to the first day of the holiday year.
If the average hours are based upon the holiday period
Change your process date to the first day of the holiday period.
Show me hownull;null;ex4
- Click Payroll, then click Change Process Date.
- Enter the required date, then click OK.
Once you've set the correct process date, click Next.
Backnull;null;wiz3,wiz4 Nextnull;null;wiz5,wiz4 Restartnull;null;wiz1,wiz4Step five
To find out the total hours worked in the specified period, you must run one of the following reports, as appropriate:
- Employee 12 Weekly Average Report
- Employee 13 Weekly Average Report
Once you have the required information, enter this in box C of the pro forma.
Show me hownull;null;ex5
- Select the required employee, then click Reports
- Click Employee, then select the Employee 12 Weekly Average Report or Employee 13 Weekly Average Report.
- Click Preview, then enter the value from Total Hours in box C of the pro forma.
- If required, click Print, then click OK.
- Click Close, then click Close.
Once you have entered the required information on the pro forma, click Next.
Backnull;null;wiz4,wiz5 Nextnull;null;wiz6,wiz5 Restartnull;null;wiz1,wiz5Step six
Check the employee's working pattern to find out the number of working days in the specified period.
Show me hownull;null;ex6- Select the required employee, then click Employee.
- Click Employee Record, then click Absence.
- Click Holiday, then click Settings.
- Check the working day pattern in the Working Day Pattern box, then multiply the number of working days in the week by the number of specified weeks. For example, five qualifying days x 12 weeks = 60 days.
Working days are denoted by a Q.
View screenshotnull;null;ss6
- Enter the value in box D of the pro forma.
Once you have entered the required information on the pro forma, click Next.
Backnull;null;wiz5,wiz6 Nextnull;null;wiz7,wiz6 Restartnull;null;wiz1,wiz6Step seven
Calulate the average daily hours in the averaging period and enter the value in box E of the pro forma.
Show me hownull;null;ex7Using the pro forma:
- Divide box C by box D, then enter the value in box E of the pro forma.
This should match the average daily hours in Employee > Employee Record > Absence > Holiday > Entitlement.
View screenshotnull;null;ss7
Once you have entered the required information on the pro forma, click Next
Backnull;null;wiz6,wiz7 Nextnull;null;wiz8,wiz7 Restartnull;null;wiz1,wiz7Step eight
Calulate the average weekly hours in the averaging period and enter the value in box F of the pro forma.
Show examplenull;null;ex8Using the pro forma:
- Divide box C by box B, then enter the value in box F of the pro forma.
This should match the average weekly hours in Employee > Employee Record > Absence > Holiday > Entitlement.
View screenshotnull;null;ss8
Once you have entered the required information on the pro forma, click Next
Backnull;null;wiz7,wiz8 Nextnull;null;wiz9,wiz8 Restartnull;null;wiz1,wiz8Step nine
Calculate the common hourly denominator and enter this in box G of the pro forma.
Show me hownull;null;ex9- Multiply the average weekly hours, box F on the pro forma by 52.
- Round up to the nearest 1/4 hour, then enter the value in box G of the pro forma.
Once you have entered the required value on the pro forma, click Next.
Backnull;null;wiz8,wiz9 Nextnull;null;wiz10,wiz9 Restartnull;null;wiz1,wiz9Step ten
Days pro forma
Calculated the annual entitlement by multiplying the specified entitlement by the average daily hours.
Show examplenull;null;ex10a- From the pro forma, multiply box A by box E.
- Round up to the nearest 1/4 hour.
- Enter the value in box H of the pro forma.
This should match the annual entitlement in Employee > Employee Record > Absence > Holiday > Entitlement.
View screenshotnull;null;ss10a
Weeks pro forma
Calculated the annual entitlement by multiplying the specified entitlement by the average weekly hours.
Show examplenull;null;ex10b- From the pro forma, multiply box A by box F.
- Round up to the nearest 1/4 hour.
- Enter the value in box H of the pro forma.
This should match the annual entitlement in Employee > Employee Record > Absence > Holiday > Entitlement.
View screenshotnull;null;ss10b
Once you have entered the required value on the pro forma, click Next.
Backnull;null;wiz9,wiz10 Nextnull;null;wiz11,wiz10 Restartnull;null;wiz1,wiz10Step 11
Calculate the total hours worked so far in the holiday year and enter this in box I of the pro forma.
Show me hownull;null;ex11To calculate the total hours worked so far in the holiday year, run the Payment Type History report.
- Select the required employee, then click Reports.
- Click Employee, then select Payment Type History.
- Click Preview, then enter the start of the holiday year in the first Processing Date date box.
- Enter the accrual date, noted in step 3, in the second Processing Date date box then click OK.
- Enter the Current Hours Grand Total value in box I of the pro forma.
View screenshotnull;null;ss11
- If required, click Print, then click OK.
- Click Close, then Close.
Once you have entered the required value on the pro forma, click Next.
Backnull;null;wiz10,wiz11 Nextnull;null;wiz12,wiz11 Restartnull;null;wiz1,wiz11Step 12
Calulate the employee's accrued entitlement and enter the value in box K of the pro forma.
Show me hownull;null;ex12- CLick Payroll, then click Change Process Date.
- Enter the accrual date then, using the values from pro forma calculate H x (I / G), enter this value in box J of the pro forma.
- Round the value from J up to the nearest 1/4 hour then, if applicable, add any days brought forward, carried forward or any additional days.
- Enter the value in box K of the pro forma.
This should match the employee's entitlement in their record.
View screenshotnull;null;ss12
You have now calculated your employee's holiday entitlement.
NOTE: This guide is for information only. If you're unsure of your employee's holiday entitlement, please refer to Business Link's article Know how much holiday to give your staff.
Upgrade your licence
Growing business? Add more companies, users, or employees to your licence with ease. Leave your details and we’ll be in touch.
Africa
Asia
Australia
Canada
France
Ireland
Kenya
Nigeria
Portugal
South Africa
Spain
United Arab Emirates
United States
Germany