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UK Payroll - Can holiday entitlement be worked out and taken in hours rather than days?

Started by Sally Hilton -   in UK Payroll


My apologies if this question already exists. I couldn't find it and I'm not prepared to search through 29 pages to look for it.

The payroll system I'm currently using can only deal with holiday entitlement in days. I work out my employees' entitlement in hours and they book their time off in hours, which means I currently have to manually put in their holiday pay as an "other payment" that I've had to create manually and call "holiday pay".
I use Xero for my accounting and I'm thinking of switching for my payroll as well so that it's all in one place but i need to know the answer to this before I make the switch, as my current one is free.

I have 1 employee (soon to be 2) who's job role has 2 rates of pay. They're contracted to 30 hours per week but 5 of those hours are at £12 per hour and 25 are at £5.55 per hour.
They work 5 days but they work different hours across those days (Mon = 8.5, Tues = 7.5, Wed = 7.5, Thurs = 5.5, Sat = 1) so it's unfair and inaccurate for make her take annual leave in days.
e.g. If she was to mainly only take Saturdays & Thursdays off, she's not getting as much time off as she would if she took Mondays or Tuesdays off.

Can Xero accrue holiday entitlement in hours and be taken in hours? And can an employee request time off in hours, such as if they're working 8.5 hours in 1 day but want to just book off half a day, could they request 4.5 hours holiday for that day? And will the holiday balance show her remaining entitlement in hours?

Please can someone help with this. I can't seem to find the answer anywhere.
Thanks :)
I do what you are looking for in Xero, currently staff accrues hours based on the hours they work. .Gov website states staff can accrue H/Pay at the rate of 0.1207 hr for each hour they have worked. There is a setting for this in the employee time off section. However you need to set this up when that staff start or at the beginning of the tax year wk1. The Xero documentation is really poor in this area and has had many complaints. If you come at this after the employee has started you can calculate the hours they have accrued based on the total hours they have worked. There is a summary payroll report that I used get the stats to work out this information. It can then be entered in the employee time off tab manually and any future hours worked will increase the accrued to date figure. You may need to deduct any hours already paid from this balance. I am hoping from wk1 next year the figures will reset for all staff and accrue based on the hours worked. We do not carry holidays forward between years, if you do, you may need to add some hours to the balance shown in the new year. It can be done but it is a fiddle, could easily be done by the addition of a screen to enter meaning full data, like start date, accrual method (hourly, fixed, max etc). I think doing it based on actual hours worked is the most accurate way to deal with this.

David Saxon  

I have the opposite problem I would prefer to have the holiday entitlement in days not hours any idea how this is done

suzanne Van Vynck  

Has the question about whether holiday entitlement can be expressed in 'days' rather than 'hours' been answered?
Our salaried staff need to be able to take holiday in days - they are entitled to 20 every year plus the 8 bank holidays.

Andrew Auld