Processing enhanced holiday pay

Holiday is recorded on the leave calendar for employees on an enhanced or average daily holiday scheme. The system calculates the number of days, applies the correct rate, and pays the days in the current or next open payrun.

Before processing enhanced holiday pay

Before enhanced holiday pay can be processed, it must be set up and assigned to employees.

Record holiday on the leave calendar

  1. Go to Employees, then select the required employee.
  2. Select Leave.
  3. Select Add Leave.
  4. Select Holiday as the leave type.
  5. The payment type defaults to Average Days. Select a different Payment type if required.
  6. Enter the From and To dates.

    The number of days paid follows the employee's working pattern. A full Monday to Friday week pays 5 days.

  7. Select Update.

The balance updates immediately. Days are paid in the current open payrun, or carried to the next open payrun if none is currently open.

Half days

To record a half day, enter the same date in both the From and To fields and set the time to AM or PM.

Bank holidays

Bank holidays are respected according to the employee's working pattern. Days that fall on a bank holiday are not included in the paid day count.

How enhanced and standard rate days are applied

For employees on an enhanced scheme, days are automatically paid at the correct rate based on the remaining entitlement.

  • Days are paid at the enhanced rate using the AVGHOLDAYS pay code until the enhanced entitlement is used up.
  • Once the enhanced entitlement is used up, further days automatically use the standard daily rate by applying the HOLDAYRATE pay code.

The system warns when a holiday entry would exceed the days remaining in the balance.

Pay as Other

The Pay as Other option on the leave entry lets a specific day be paid at the standard rate even when enhanced entitlement remains. Selecting it deducts the day from the standard (average) balance rather than the enhanced balance.

Multi-role employees

For employees with more than one role, the daily rate follows the selected role. If no role is selected, the primary role is used.

Average daily rate calculation

The system calculates an employee's average daily rate from pay history and working pattern — total pay divided by total days worked over the reference period (default 52 weeks). If the calculated average rate is lower than the employee's normal daily rate, the higher rate is used instead.