UK Payroll - Automatic pro-rata holiday calculation
Fixing issues with holidays and making pro-rata holiday calculations automatically
Calculate starting holiday allowance from the starting date of the employee for new employees joining throughout the year.
Calculate final holiday allowance based on the end of employment date when employees leave.
Since Xero knows the holiday hours per year and the working patterns, it has everything it needs to calculate this.
If an leaving employee has taken too many holidays before they leave, it is important to ensure the leave is negative.
Furthermore, at the end of the year the employee should be given the option to carry over the holiday or get it paid out. If they select to carry it over, it should be added to the next year accrual, if they select to get it paid out, then a pay item should be added as a one-off to their payslip to pay out the holiday remaining (which should only be allowed in December, or the end of their normal holiday year).
Sabrina Preston
shared this idea
Hi there, we appreciate you raised this a little while ago. This isn't something we have plans for in the near term.
Not getting a lot of support from other members we’ll soon remove this from Product ideas. If it’s still highly valuable to you, welcome to start it again and see if it gets renewed interest.
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Keith Arrowsmith
commented
Its also really helpful for fixed term contracts - its been the top question raised by my team as they approach the end of their contracts
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Kayleigh Collins
commented
This is absolutely necessary for hourly staff!!