How breatheHR Calculates New Starters Holiday

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Employees in their first year of employment do not receive their full entitlement, but instead receive a pro rata depending on how much of the year they have missed.

 When you add a new employee to breatheHR, they will fall onto your default holiday allowance. The system will then work out if your employee has started part way through your holiday year and calculate the pro rata based on their start date. 

This ends up as an adjustment on their holiday year. This document explains how that calculation is made.

The calculation:

(Full year entitlement X Number of days between start of holiday year and employee start date) / Number of days in Year

The figure is always rounded down to the nearest half or whole number.  

For example:

Holiday year starts - 1st January 2015

Employee start date - 3rd March 2015

Employees full entitlement - 21 Days

((21 x (61)) / 365) = 3.59  (rounded down to 3.5) 

The adjustment on this employees holiday is -3.5

This is how it will be displayed on the employees leave profile.

You can also view these adjustments under the adjustments tab on the employees leave screen. 

If you do not agree with the way the pro rata has been calculated, then you can always use the adjustment buttons on the employees leave calculation to change the figure. 

Want to know more about holiday allowances in breatheHR? Click here to get started.

Click here to learn how to set a part time holiday allowance

 

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