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. YOU SHOULD WAIT UNTIL THE FIRST DAY OF THE NEW HOLIDAY YEAR TO CHANGE THE HOLIDAY YEAR OVER.

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. YOU CAN ACTION THIS IMMEDIATELY.

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. Note this figure.
  2. Pull the leave overview report to determine the total number of leave days actually taken for each employee to date in this shorter holiday year. Note this figure. 
  3. Pull the holiday allowance report to determine if any carryover has been applied to each employee's leave at the beginning of this current holiday year and, if so, how much. Add this amount to the figure in step 1. If the timeframe for carryover has expired, you can deduct the amount of unused carryover back off the figure noted in step 1. However,  DO NOT adjust the allowances at this point. 
  4. From the figures noted in steps 1 (potentially adjusted at step 3) and 2, calculate whether each employee has taken more or less than their entitlement for the shortened year including carryover. 
  5. Before changing the holiday year, 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.
  6. Change the holiday year on the day that the new holiday year starts. You can do this by going to Settings>Absence Settings>Holiday Years>Change Holiday year.
  7. Re-assign allowances that allow for carryover to those who had them previously ready for the next holiday year.
  8. Adjust newly allocated holiday allowances up or down according to the calculations in step 3.
  9. If the expiry date for carryover has not been reached at the time that you change the holiday year, then you will be carrying forward the entire amount of unused carryover from the shortened holiday year (you will not have adjusted the figure in step 1 at step3). Please note that this will now apply to the current holiday year without an expiry date. Should you wish to 'expire' this carryover, you will need to make a manual minus adjustment to the new allowance. You can calculate the unused amount by taking the figure you noted in step 3 and deducting all leave taken in the relevant time 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 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 leave overview report shows the following info for leave days taken so far this current holiday year: Joel - 6; Kate - 0; Sophie - 10; Bethan - 2.
  3. The holiday allowance report says that Joel was entitled to 3 days carryover to be used by 31st March. You should add this amount to his extra 5 day entitlement Joel noted in step 1. The timeframe for using carryover will have expired by the time you change your holiday year. However, Joel has used up all his carryover within the timeframe so no further adjustment to the figure in step 1 needs to be made. Total figure for step 1 for Joel = 8, therefore.
  4. Joel has taken 2 days less than his overall entitlement (8 - 6 = 2); Kate 5 days less (5 - 0 = 5); Sophie 5 days more (5 - 10 = -5) and Bethan 3 days less (5 - 2 = 3).
  5. Change any employee with a holiday allowance that allows for carryover onto one that does not give carryover.
  6. On 1st April, change the holiday year to run from 1st April to 31st March. 
  7. Re-assign holiday allowances that allow for carryover where applicable.
  8. Adjust Joel's allowance up by 2 days, 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. 

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. Note this figure but do not make any adjustment to the allowance at this point.
  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. If the time frame for carryover has NOT yet expired, you will need to use the leave overview report to calculate the amount of unused carryover in this period and add it to the figure in step 1. Any used carryover in this period should be deducted from the figure you noted in step 2.
  4. Before changing the holiday year over, make sure that employees are temporarily placed on an allowance that does not give carryover.
  5. Change the holiday year. You can do this by going to Settings>Absence Settings>Holiday Years>Change Holiday Year.
  6. Place the employees back on an allowance that grants carryover in readiness for the next new year period.
  7. Make a manual plus adjustment to the newly allocated allowance for the figure calculated in step 1 - adjusted in step 3 if required.
  8. Make a manual minus adjustment to the newly allocated allowances for the amounts calculated in step 2 - adjusted in step 3 if required.

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. The holiday allowance report shows that Joel was entitled to 3 days carryover to be used by 31st March. The date for using carryover has expired and Joel used all his carryover up within the required timeframe. No adjustment to the figure in step 1 is necessary therefore, so the total will be 5. However, you will need to deduct 3 days from the amount noted in step 2, leaving 3.
  4. Place employees temporarily on an allowance that does not give carryover.
  5. Change the holiday year to run from 1st April to 31st March.
  6. Place employees back on an allowance that gives carryover if they were originally on one.
  7. Make a plus adjustment to all employees' allowances for the additional entitlement calculated in step 1 - 5 in all cases as Joel's carryover has now been discounted.
  8. Make a minus adjustment to the employee allowance for the amount identified by step 2: Joel - minus 3; Kate - no minus adjustment; Sophie - minus 10; Bethan - minus 2.

 

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