- Set up a leave policy that accrues leave based on your team member's regular working hours
- How does it work?
- For UK businesses
Set up a leave policy that accrues leave based on a team member's regular working hours
There are default leave policies already loaded into your account.
You can use these policies as a starting point to edit and configure to suit your organization's requirements or set up a new policy if that is preferred.
Set your accrual option
1. When configuring your leave policy you will need to select the accrual option Based on regular working hours as shown below.
Note:
- Enter the amount of leave per year that a full-time team member is entitled to according to your organization's leave policy. Part-time team members with regular working hours assigned will receive the equivalent portion of the amount assigned for full-time team members.
- You can set up this leave policy to track in either hours or days, but if you select days you will need to specify days worked per work period when setting up the team member's total hours per work period.
2. You can also choose whether this accrued leave will be released each year on:
- a specific date
- the team member's hire date
3. Once you have completed setting up the rest of this leave policy, click Save.
Set regular working hours for your team members
The next step is to make sure your team members have regular working hours or total agreed hours set in their profiles.
Pro tip: You can also do this step as a bulk action for multiple team members at once if you need.
1. In the team member's profile on the Employment tab, you first need to define a work period.
2. Then agreed hours can be set as either:
- regular working hours in a period (eg. every Monday, Wednesday, and Friday night)
- total agreed hours during a period (eg. 24 hours per week)
If you set regular working hours, they may look like this example:
If you set total agreed hours per work period, they may look like this example:
Note: As mentioned in the previous section of this article, if you have chosen to:
- set this leave policy up to be tracked in days AND
- enter your team member's agreed hours as total hours per period
then you will need to specify over how many days within the nominated work period the team member will work these total hours.
Deputy will need this figure to be able to calculate the leave entitlement for team members set up this way.
Assign the leave policy to your team members
The next step is to assign your new leave policy to the team members you have set up regular working hours for.
Note: You need to have also set up pay rates for your team member before you can assign leave.
1. On the team member's profile, in the Employment tab, select Add Leave entitlements.
2. Select the leave policy you configured for accruing leave based on regular working hours and click Save.
Note: You will receive a warning message at this point if you:
- try to assign a leave entitlement without first setting a pay rate for the team member
- try to assign a leave entitlement that accrues based on regular working hours without setting regular working hours for the team member
If you assign a leave policy that is tracked in days, you will also be asked to nominate Standard hours, which is the number of hours that represents a standard day of leave. Read more at Setting up standard hours to support leave management.
How does it work?
Once this policy is set up and assigned to your team member, Deputy uses the amount of leave configured in the policy and the team member's regular working hours to calculate their leave entitlement.
For leave policies set up to track in days:
Deputy uses the full-time leave entitlement configured in the leave policy and the team member's regular working days to calculate their leave entitlement.
This means a team member who works fewer regular days can receive a proportional amount of the full-time entitlement configured in the policy.
For leave policies set up to track in hours:
When leave is tracked in hours, Deputy uses the team member's working hours and days to determine their entitlement in hours.
If the team member has fixed regular working hours, the amount of leave deducted can reflect the number of hours they normally work on the day they take leave.
If the team member has no fixed working days and instead has total agreed hours per work period, Deputy uses the total agreed hours and the number of days they are expected to work during the period to calculate their average working day.
Leave accrued will be released to the team member according to the leave policy's setting on either a specific date each year or the team member's hire date.
For UK businesses
The following information explains how accruing leave based on regular working hours can be used in the context of UK statutory holiday entitlement.
Most workers in the UK are entitled to 5.6 weeks of paid holiday each year, with statutory holiday entitlement capped at 28 days for workers who work five or more days per week.
When configuring the leave policy, the amount of 28 days per year for a full-time team member may be used as the full-time allowance. You can edit this amount if your team members are entitled to a different amount of leave.
Part-time team members with regular working hours assigned will receive the equivalent portion of the amount assigned for full-time team members.
For more information, see the UK government's guidance on holiday pay and calculating holiday pay for workers without fixed hours or pay.
For leave policies set up to track in days:
|
Leave accrued annually = 5.6* weeks × number of regular working days set in the team member's profile. * The amount configured in the leave policy can be edited to reflect the leave entitlement that applies to your team members, which will alter the result. |
Example 1: Leave tracked in days when working less than 5 days per week
Felicity works 3 days per week. Her statutory leave entitlement is 5.6 × 3 days per week, which is 16.8 days.
Therefore, Felicity's statutory leave entitlement is 16.8 days and Deputy will accrue 16.8 days of leave for Felicity over the year.
Example 2: Leave tracked in days when working more than 5 days per week
Sidney works 6 days per week. 5.6 × 6 days per week is 33.6 days, but UK statutory holiday entitlement is capped at 28 days.
Therefore, Sidney's statutory leave entitlement is 28 days and Deputy will accrue 28 days of leave for Sidney over the year.
For leave policies set up to track in hours:
|
Leave accrued annually = leave entitlement in days × average working day. Average working day = hours worked per week ÷ days worked per week. The amount configured in the leave policy can be edited to reflect the leave entitlement that applies to your team members, which will alter the result. |
Example 3: Leave tracked in hours where the team member has fixed regular working hours
Sam works 26 hours over 4 days per week, which includes 6 hours per day two days per week and 7 hours per day another two days.
Sam's statutory leave entitlement is 5.6 × 4 days per week, which is 22.4 days.
Sam's average working day can be calculated as 26 hours ÷ 4 days = 6.5 hours.
Therefore, Sam's statutory leave entitlement in hours for a full year is 22.4 days × 6.5 hours = 145.6 hours, and Deputy will accrue 145.6 hours of leave for Sam over the year.
Depending on which day of the week Sam takes off, either 6 or 7 hours of leave will be deducted from her leave balance.
Example 4: Leave tracked in hours where the team member has no fixed working days and has total agreed hours per work period
Min has an agreement with her organization to work 20 hours a fortnight. Her profile has been set up with total agreed hours of 20 hours per 2-week period, and her manager has estimated that she would usually complete these 20 hours across 4 working days per period as shown below.
With 20 hours per 2-week period and 4 days worked per period, her average working day is calculated as (20 hours ÷ 2 weeks = 10) ÷ (4 days ÷ 2 weeks = 2) = 5 hours.
Her statutory leave entitlement is 5.6 × 2 days per week, or 4 days per 2-week period, which is 11.2 days.
Min's average working day can also be calculated as 20 hours ÷ 4 days = 5 hours.
Therefore, Min's statutory leave entitlement in hours for a full year is 11.2 days × 5 hours = 56 hours, and Deputy will accrue 56 hours of leave for Min over the year.
Note: Leave accrued will be released to the team member according to the leave policy's setting on either a specific date each year or the team member's hire date.