Setting up Earn & Claim (Pro-rata) Holiday Entitlement

This article will go through how to set up and manage your earn based on hours worked holiday entitlement. There are two types of earn and claim holiday types:

• Earn Holiday Based on Hours Worked and Claim with a Holiday Request
• Earn Holiday Based on Pro-rata Entitlement and Claim with a Holiday Request   

What is Earn & Claim?

Earn and Claim holiday entitlement means that staff must work a certain number of hours to receive holiday pay rather than instantly having access to all their annual leave.

There are two different ways to approach Earning and Claiming entitlement, which we will explain further. These are Earning based on Hours Worked OR Earning based on pro-rata entitlement.

This article will go on to discuss how to set up an entitlement for staff using an Earn Holiday Based on Pro-rata entitlement.

Earn based on Pro Rata Entitlement and Claim

This option allows staff to earn holiday based on pro-rata entitlement. This means that staff do have a set amount of holiday entitlement but this is pro-rata. Meaning that if they worked the full year they will get the full entitlement but if they have worked less (if they were part-time or started at the position later in the year, or left yearly) they will not receive the full entitlement (it will be proportional to the hours worked). 

This is to ensure that everyone on the same contract receives same rate of holiday pay, dependant on the hours they worked.

This also means that they will not be able to start claiming holiday until they have started working as they are required to have worked a certain number of hours to generate their entitlement.  This type of entitlement also has cap on holiday entitlement for the year. This means that if a staff member works overtime and earns more than their expected holiday allowance they will not receive any increased holiday.

They will earn holidays based on their worked hours, and the system will provide them with a holiday allowance based on the percentage of hours worked. Once earned, this will appear under their holiday allowance, from which staff can request a holiday using their earned holiday.

Step 1

You want to go to your holiday tab under the contract you want to edit. Go to Pay > Contracts > Manage Contracts to find your holiday options. Then, go to the holiday tab of the contract to which you want to apply these holiday rules.

To use this option, select the Earn holiday based on pro-rata entitlement and claim with a Holiday Request option. Afterwards, select whether the holiday needs to be shown in hours or days.

You will need to add the value of the total available holiday entitlement for the year. This will cap the number of holiday days they can be paid for within a single year.

Additionally, you can decide whether to use holiday allowance only using their working pattern or only if they also have scheduled shifts.

If using a working pattern, you can limit how many days are deducted during the week. This can be helpful if all seven days of the week are potential working days in their working pattern, but they only work three days. In this case, you would choose to only deduct pay for three days a week or when they have a shift booked.

Step 2

This option does not require it to be linked to a pay element. You can immediately create a holiday request.

When creating a holiday request under this entitlement, you will see how much you have earned and how much of your yearly entitlement you can use.

To learn about our other earn and claim options, you can visit our article on Earn & Claim based on Hours Worked or our video on Earn & Claim. You can also view our video on our fixed holiday entitlement.