Salaried Employees:
No change in the process.
If a salaried employee is entitled to 28 days of holiday per year, each day they book will result in a deduction of one day from their holiday balance.
The cost of the holiday is effectively zero because the salary already includes holiday pay.
For employees joining mid-year, their holiday entitlement will be automatically adjusted. For example, if an employee starts halfway through the holiday year, their entitlement will be 14 days instead of 28, and this will be calculated automatically.
Hourly/Shift Employees:
We offer two methods to calculate holiday for hourly/shift employees, which can be selected on an individual basis, depending on whether the employee works "regular hours."
1. Original (Current) Method:
12.07% of hours worked are accumulated in a holiday pot.
When an employee books holiday, we calculate their average shift length per day over the last 52 weeks, and then deduct the corresponding amount from their holiday pot. For example, if an employee usually works an 8-hour day, we calculate their average shift length as 8 hours.
The cost of the holiday is calculated by multiplying the average hours (e.g., 8 hours) by the employee’s current hourly rate at the time of the holiday.
Note: Historical shift data is required for this method and we will ask for this during the Onboarding process.
2. New Method:
When an employee books holiday, we calculate their pay over the last 52 weeks (or as many weeks as data is available). We also calculate the number of days worked each week.
Holiday Entitlement Calculation:
The total holiday allowance for an employee is determined by:Calculating the average number of days worked per week over the last 52 weeks (e.g., 3 days).
If the employee works more than 5 days in a week, it is capped at 5 days, as the maximum holiday entitlement is 28 days per year.
Example:
If an employee works an average of 3 days per week, their holiday entitlement is calculated as:28 days /5*3 = 16.8 days per year.
When the employee books holiday, the system will display the number of days taken and the remaining balance. For example:
Entitlement: 16.8 days, taken: 1 day, balance: 15.8 days remaining.
Holiday Cost Calculation:
The cost of the holiday will be calculated based on the employee's daily average pay, calculated from the last 52 weeks of shifts.Example:
Employee hourly rate: £11.44/hour
Average workday: 8 hours
Daily earnings: £91.52
Weekly earnings (for 3 days): £274.56
One day's holiday cost: £91.52 (based on their daily earnings at the time of the holiday at the point the holiday was booked).
If an employee’s hourly rate increases, the cost of their holiday may slightly change, but it will not fluctuate drastically as the calculation is based on the last 52 weeks of data.
Important: Opsyte will not recalculate any figures if the holiday method is changed midway through the holiday year. We strongly recommend against making this change until you start your new holiday year.