Guide to changing your holiday year

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We have put together this guide to help you work out what steps you should take when changing your holiday year.

The steps you should take will always depend on where you are in the year in relation to your new holiday year start date. If the new holiday year start date will fall before the old holiday year is due to start again, then this will result in a shortened holiday year. However, if the next new holiday year start date will fall after the old holiday year is due to start again, this will result in a lengthened holiday year.

Shortening your current holiday year:

We would recommend that you change the holiday year on the first day of the new holiday year.

These are the steps you should take: 

  1. Calculate the pro-rata'd leave entitlement for your employees for the number of months in the shorter holiday year.
  2. On the day before you change the holiday year over, pull the holiday allowance report to determine the number of leave days actually taken in this shorter holiday year.
  3. Calculate whether each employee has taken more or less than their entitlement for the shortened year.
  4. Ensure any employees that are on holiday allowances with carryover are placed temporarily on an allowance that does NOT allow carryover. This is because you will not want the system to give recalculate and grant yet further carryover for the new holiday year.
  5. Change the holiday year on the day that the new holiday year starts.
  6. Re-assign allowances that allow for carryover to those who had them previously ready for the next holiday year.
  7. Adjust newly allocated holiday allowances up or down according to the calculations in step 3.

Example

Your current holiday year runs from January to December and you want it to run from April to March. 

You are currently in February. 

Your standard holiday allowance is 20 days.

You will effectively need to shorten the current holiday year so it runs from January to March and then begin a new holiday year from April.

Your steps are as follows:

  1. The pro-rata'd leave entitlement here would be for the 3 months from January to March which would be 5 days based on a 20 day annual entitlement.
  2. The holiday allowance report pulled on 31st March shows the following info for leave days taken so far this current holiday year: Joel - 6; Kate - 0; Sophie - 10; Bethan - 2.
  3. Joel has taken 1 more day than his entitlement; Kate 5 days less; Sophie 5 days more and Bethan 3 days less.
  4. Change any employee with a holiday allowance that allows for carryover onto one that does not give carryover.
  5. On 1st April, change the holiday year to run from 1st April to 31st March.
  6. Re-assign holiday allowances that allow for carryover where applicable.
  7. Adjust Joel's allowance down by 1 day, Kate's up by 5, Sophie's down by 5 and Bethan's up by 3.

 

Lengthening your current holiday year:

You can change the holiday year with immediate effect. However, you will notice that shortening a holiday year is a much simpler process. It can therefore be worth waiting until you are in a situation where you are able to shorten the year rather than lengthen it.

Should you wish to lengthen the holiday year, these are the steps you should take:

  1. Calculate the pro-rata'd leave entitlement for the number of months being added to the new holiday year. 
  2. Pull the leave overview report to determine the number of leave days taken in the months from the beginning of the old holiday year to the date in this calendar year that will become the start of the new holiday year. The reason you will need to do this is because this amount will automatically be discounted from the new leave calculations when you shift the holiday year start date forward and thereby allocate a fresh year's holiday allowance. However, as you will also be adding in the additional entitlement for this period, you will need to ensure that you also deduct the time that has already been taken within this time frame. 
  3. Pull the holiday allowance overview report for the previous holiday year to see if any employees were allowed carryover. Note this amount. Check the time frame that they need to use this by.
  4. If the time frame for carryover has now expired, look at the leave overview report again and determine exactly how many leave days were taken by employees who were allowed carryover within this time. If this is less than their carryover entitlement, note down how much by. If it was more, note down 'zero'.
  5. Change the holiday year.
  6. Make a manual plus adjustment to the newly allocated allowance for the figure calculated in step 1.
  7. Make a manual minus adjustment to the newly allocated allowances for the amounts calculated in step 2.
  8. Make a manual minus adjustment to the newly allocated allowances to remove any unused carryover - this will be the figure you have noted down in step 4.
  9. DO NOT click 'Finish Year' on the newly created previous holiday year as you will not want any new carryover to be generated at this point. This is because this was already given at the beginning of the lengthened period.

Example

Your current holiday year runs from January to December and you want it to run from April to March

You are currently in August.

Your standard holiday allowance is 20 days.

You will effectively have to lengthen the current holiday year so that it includes January to March of the following year.

Your steps are as follows:

  1. The additional entitlement for the extra 3 months from January to the end of March would be 5 days based on a 20 day annual entitlement.
  2. The leave overview report from January to March of the current holiday year shows the following info for leave days taken so far this current holiday year: Joel - 6; Kate - 0; Sophie - 10; Bethan - 2.
  3. Check holiday allowance report for carryover from previous holiday year. Note the amount. Check the use by date.
  4. Check the leave overview report to see how much leave was taken in the carryover 'use by' period. If it is less than the allowance, note this figure down. If it is more, note down 'zero'.
  5. Change the holiday year to run from 1st April to 31st March.
  6. Make a plus adjustment to all employees' allowances for the additional entitlement calculated in step 1.
  7. Make a minus adjustment to the employee allowance for the amount identified by step 2: Joel - minus 6; Kate - no minus adjustment; Sophie - minus 10; Bethan - minus 2.
  8. Make a minus adjustment to any employee's allowance for any unused carryover. This will be the figure you noted down in step 4.
  9. DO NOT click 'Finish Year' for the holiday year that will now appear under your holiday years tab that relates to the previous year as you don't want yet more carryover to be pulled across in April when it was already given in January.

 

 

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