How pro rata holiday entitlement is calculated

Full time equivalent (FTE)

The full time equivalent (FTE) value is stored on the Job & Salary screen and is calculated in two ways:

1. If the employee has no associated grade, the calculation is the number of hours the employee works divided by the number of hours for the post.
   
   Hours worked / Normal hours for role

   For example, receptionists are contracted to 40 hours per week, but Mary works 32 hours a week. Her FTE should be 32 / 40 = 0.8.

2. If an employee has an associated grade, then any hour’s value for the grade supersedes the value for the post, so the calculation is:
   
   Hours the employee works / hours the grade works

The FTE value is stored to 16 decimal places. Throughout the calculation, the FTE is used with this precision, but the value displayed in the system may be to two decimal places.

Bank holidays

1. Go to Admin.

2. From Application Data, select Attendance and Calendars.

3. Select Bank Holidays. The list of bank holidays the calculations uses is displayed.

In the UK, full-time employees are typically entitled to eight bank holidays per year, in addition to their annual leave entitlement. However, when bank holiday entitlement is pro-rated, it’s deducted from the annual leave entitlement.

Normal working day

To calculate bank holidays pro rata, the system needs to know the actual value of a bank holiday, in hours. The value of a bank holiday is assumed to be the same as a standard company day, which is set as a global value called Normal Working Day:

1. Go to Admin.

2. From Application Data, select System Properties.

3. From the list of categories, select General.

4. Select Normal Working Day.

5. Enter the Value in hours for a standard working day.

6. Select Save.

If required, you can override this value on an individual basis.

Use the Screen Designer to add a field called Normal Working Day to the Job & Salary screen. This field should hold the same value for a day that a full-time employee works.

Minimum day unit

The minimum day unit is the minimum unit that employees, who take their holidays in days, can use. The default is 0.5 (a half-day), but you can change this to 1 or 0.25.

To set the minimum day unit global value:

1. Go to Admin.

2. From Application Data, select System Properties.

3. From the list of categories, select General.

4. Select Minimum Day Unit.

5. Select the Value from the list.

6. Select Save.

Start dates

The pro rata functionality is controlled by two dates in System Properties. These dates tell the system which entitlement years should be pro-rated (i.e. only entitlement years with a start date that is on, or after, this date).

Entitlement

Employees’ holiday entitlement is made up of the following:

• Base Entitlement

• Length of Service Adjustment

• New Starter Adjustment

• Manual Adjustment

• Carry

You can view this information on the employees’ Entitlement Year screen in the HR area.

Values in the Manual Adjustment box or the Carry box are not subject to the pro-rata calculation.

Rounding

IRIS Cascade never reduces employees’ entitlement through rounding. In other words:

• If IRIS Cascade needs to apply a deduction to entitlement, it deducts less to get to the nearest unit

• If IRIS Cascade needs to apply an addition to entitlement, it adds more to get to the nearest unit