Holiday Allowance and Accrual

Kobas makes it easy to manage your employees’ holidays. Here is a brief guide on how Kobas calculates the rate at which holidays are accrued and how much an employee gets paid per day of holiday.

Last updated 30 Mar 2023

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Holiday Allowance

The amount of holiday allocated to an employee depends on their contract type and number of days per week that they work. When you onboard a new staff member in Kobas, we will ask you to define their contract type, and this will provide further options on their holiday allowance. We will recommend the minimum legal holiday allowances for the number of days per week your employee works, but you can choose to enter a higher number if desired.

For information on the law around Holiday Allowances please see: https://www.gov.uk/holiday-entitlement-rights/entitlement

Full and part-time

Since the law states that employees are entitled to 5.6 weeks of statutory holiday a year, the default Full Year Allowance for a staff member in Kobas is 28 days (the minimum UK holiday allowance for a full-time employee).

Depending on the number of days worked per week, we recommend the following allowances:

  • 5 days worked per week = 28 days holiday
  • 4 days = 23 days
  • 3 days = 17 days
  • 2 days = 12 days
  • 1 days = 6 days

Holidays accrue automatically based on two things; an employee’s total holiday allowance for the year (see above) and at what point in the calendar year the employee started work.

For example, if your holiday year runs from 1st January – 31st December and two full-time employees start on 1st January they will accrue their 28 days at the same rate as the year progresses.

If an employee were to start full-time work on 1st July, they would accrue 14 days over the course of the remainder of the year.

The average shift length is worked out from the total hours worked divided by total days worked.

Irregular hours workers

Irregular hours workers, including zero-hour contracts, will have a holiday entitlement based on their projected entitlement for the entire Holiday year. This is calculated by taking the total hours worked, and the total number of days worked going back to understand the projected entitlement.


Calculating the Value of Holiday Days

Full and part-time

The value of holiday days are variable in value and depends on the employee’s work history. Each day of holiday taken is based on an employee’s pay rate and average shift length over the 52 weeks prior to redeeming the holiday.

For example, an employee may take a holiday in June having worked an average of 6 hours per shift at £8 per hour over the previous 52 weeks. In this case, each day of holiday will be paid at a rate of 6 hours of work at £8 per hour. However, the same employee might then take a holiday in December having worked an average of 10 hours per shift over the previous 52 weeks. This time, each day of holiday will be paid at the rate of 10 hours of work at £8 per hour.

Irregular hours workers

The holiday pay is calculated using the previous 52 weeks of normal pay. The total hours worked, as well as the total pay for this reference period, are used to calculate your average hourly pay-rate. This pay rate will be applied to the holiday entitlement.

Switching Contract Types

You can change an employee’s contract type in Kobas Cloud by visiting Staff > Current Staff and viewing their profile. Edit the pay details from the Staff Details list on the left of the page.

When switching from either full or part time to zero hours (or vice versa), we snapshot any remaining holiday allowance and include it in the allocation for the remaining part of the year. After a switch, the holiday accrual method will reflect the current contract type as described above.

For example, an employee is full time for the first 6 months of your holiday year and then switches to zero hours for the remaining 6 months. They start their zero hour contract period with 14 days holiday allowance and accrual from their full time period. After this the holiday allowance and accrual increment based on hours worked, in line with the zero hour system.


Viewing and amending holiday allocation and accrual

Viewing holiday accrual

This information can be found in three places:

  • Staff profile (by the staff member and others with permissions)
  • Rota > New Holiday Request screen (by the staff member and others with permissions)
  • Reports > Holiday Status Report (by those with permissions)

The New Holiday Request screen allows you to check the current and the next holiday year. The Holiday Status report allows you to see the current year, and the previous, by selecting this checkbox:

Amending Holiday Allocation

Users with relevant permission levels can edit the holiday allocation for an employee on their staff profile in Kobas Cloud. This includes changing their allowance or adding any days to ‘carry over’ from the previous year, which get added to their allocation on top of their normal allowance.

To do this, go to Staff > Current Staff and select the employee’s profile. Scroll down and you will see the Time and Attendance table on the left of the page where you can make the changes.

 

Also check out our Managing time off article for details as to how you can process and manage Holidays.