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Is there any update on this feature yet?

This would really be so useful, and would certainly be a contributing factor for me to move payroll software if it is not made accessible soon. As a legal requirement that has been in place in the UK for the last 4 years it is an absolute necessity.

No they haven’t and no idea if or when. I gave them a low rating on Trustpilot and they told me that we could manually adjust pay. Same for Smartpension..

Have Xero updated any of their reports ot include average holiday pay reporting?

This lack of functionality is stopping our client using Xero payroll , so going elsewhere !!

As this is a legal requirement it makes sense that our payroll software is up to date and in line with current legislation, and be able to do this calculation.

It doesn't look as if anyone at Xero is interested. Legal requirements should be included in the system asap after being announced

It would be substantially beneficial to have the ability to run a report to calculate holiday pay based on 52 weeks of working rather that manually calculating and having a larger margin for error and possible penalties. In the UK this has been a legal requirement since 2020.

come on Xero.. can you please listen to us and add this function? Or will you pay our penalties should we get the manual calculations wrong?

UK Payroll: Reporting - Run a report to calculate holiday pay based on a 52 week average
This is a critical requirement for UK payroll calculations. This affects employers whose workers have regular overtime aswell as those with zero hours workers

This should be a new holiday option though, not editing an existing holiday setting in Xero - as many xero users will already be manually accounting for this statutory requirement and if an existing setting us changed it will result in errors for them!

https://www.gov.uk/government/publications/calculating-holiday-pay-for-workers-without-fixed-hours-or-pay/calculating-holiday-pay-for-workers-without-fixed-hours-or-pay--2#how-the-law-has-changed-as-of-6-april-2020

Employment Appeal Tribunal (EAT) – UKEATS/0047/13 - Bear Scotland Ltd v Fulton (2014)
The EAT found that regular overtime, which employees are obliged to perform if requested by the employer, should be included for holiday pay purposes...

EAT – UKEAT/0334/16 - Dudley Metropolitan Borough Council v Mr G Willets and others (2017)
This case concerned 56 council workers who repair and improve housing. The EAT ruled that payments for purely voluntary overtime should be included in holiday pay if they are regular enough to constitute ‘normal pay

There are many more UK legal cases where employer has lost tribunal case...

Due to the court case in July 2022 which states those on 0 ours contract can't accrue holidays at the rate of 0.1207. Does Xero have the intention of enabling a functionalty for it to look at the hours of 52 weeks up to a maximum of 104 and average out to comply with the new regulations?

As this is a statutory requirement it would be extremely helpful if xero could run a report to show this instead of multiple calculations being done every month for numerous employees. further than this when holidays are booked through xero should the calculation be automatically done via the system when paying employees. So when you are running payroll for the person where the holiday hours show the box with the holiday pay rate should be auto populated with the 52 weeks average calculated.

We need to be able to set each individual amount of days due based on the hours they work regularly and to be able to customise it when necessary.

This is a critical requirement for my practice as we have many clients whose staff are on zero hour contracts and therefore require their holiday pay to be based on a 52 week average. I did not know it was a requirement since 2020 but I have been informed by our HR consultant that there are many employment cases that are arising as a result of this not having been adopted in payroll practice.