As well as allowing your employees to book time off, Planday can also calculate how many days of holiday they have accrued along with the cost of the holidays. The following guide will walk you through the process of setting up accrued holiday for your company.
Please note: If the settings detailed below aren’t present it is likely that accrued holiday has not been enabled for your company. If this is the case, please contact your activation consultant or the support team to activate accrued holiday.
Set the shift types which will be used to calculate accrued holiday
Go to Settings > Absence, Overtime, Vacation > General, and select the Shift types for accrued account tab. Here you should check every shift type that should be counted in the accrued accounts. As a general rule of thumb, any shift type with a rate adjustment of 0% does not count for accrued. Overtime (or TOIL) is also commonly excluded from accrued holiday calculation. Each time you create a new shift type which should be included in accrued holiday calculations it needs to be checked here, as the default state will be unchecked upon creation.
Set up the account type
Before you can start using the accrued holiday feature, you need to create an account type which will apply to your employees.
Go to Settings > Absence, Overtime, Vacation > Account types and Select + Vacation account.
- For Allowance select Accrued.
- Set a Reset day, which is the first day of your holiday year. (In the UK this is typically the first of January or April.)
- Set a maximum yearly allowance. This is typically 28 days. Please keep in mind that the maximum yearly allowance you set does not guarantee that an employee will get that number of holidays over the course of the year, it is the upper limit that they can accrue. You can find further information in this guide to accrued holiday calculations.
- Make sure to associate the correct employee type with the Salaried and Hourly options. It isn’t necessary to add both, but in most cases it is the easiest way to deal with employees who switch from one type to the other in the same holiday year. It is also worth noting that if some of your staff have an entitlement that is higher than the rest (i.e. a maximum higher than 28), they should be assigned a separate employee type and a separate accrued holiday account type as well.
- Choose whether to calculate the holiday costs for waged employees based on an exact calculation or the standard 12 week average. If you are unsure which one to pick, we typically recommend leaving this option unchecked, especially if you are setting up accrued holiday accounts after the beginning of your holiday year. You can find further information in this guide to accrued holiday calculations.
- Save the account type.
Creating and editing accrued holiday accounts
Go to the People > Employees and edit the employee you want to create an accrued account for. In the Vacation section edit the accrued account that is now visible under Vacation accounts. If it isn’t visible, the employee may not be assigned to the correct Employee group, Department, or wage type.
Please note: The maximum yearly allowance should only be changed in exceptional circumstances. When changed it will revert to the default next year. Changing the exact calculation option for a single employee is also not a typical action.
If this is the beginning of the holiday year, the initial values should be blank. if you need to add carryover from the previous year, add it in the Carryover section. Set the Counting from date to the beginning of the holiday year.
If this is any time other than the beginning of the holiday year, you will need to update the initial values to reflect what the employee has accrued so far:
- Counting from date: This should be set to the day from which Planday should start calculating accrued holiday, adding to the balance that you have set below.
- Total days accrued: The number of days an employee has accrued between the beginning of the holiday year and the Counting from date. This can be calculated by multiplying the number of days worked in that period by 0.1207.
- Holiday days balance: Deduct the number of holiday days already taken from the Total days accrued in order to get the number of holiday days the employee is currently owed. This can also be a negative number if they have taken more holiday than they have currently accrued.
- If you are using Exact calculation you will also need to enter the monetary cost of each of the fields above.
Assuming a starting date for the holiday year of January 1st, the employee works 53 days as of March 12th, and has taken 3 days of holiday in that period. Their details would be entered as follows:
- Counting from date: 13th March
- Total days accrued: 53 * 0.1207 = 6.40
- Holiday days balance: 6.40 - 3 = 3.40
Save the account. If the total is not calculated immediately refresh the page to get an updated amount. If the figures remain incorrect, check that you are counting the correct shift types and have entered the correct Counting from date.
After an account has been created, you can still edit most details with the exception of the maximum yearly allowance and start/end dates. If these details are incorrect you'll need to delete the account and create it again. As a precaution we advise that you check whether any holiday has been created before deleting.
Booking and approving holiday
Employees can now request holiday via Home > Your vacation, and you can create and approve holiday in Schedule > Vacation & Overtime. The holiday pay will appear in the payroll print in the period in which it has been taken.
Holidays will be shown in your employees’ schedule. Take care to delete or reassign shifts that clash with holidays, as employees may be paid twice for these days.