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Calculate holiday entitlement for irregular workers
Calculate holiday entitlement for irregular workers

How you can calculate holiday allowance in Sage HR for employees who work irregular hours in line with UK compliance.

Oliver Cook avatar
Written by Oliver Cook
Updated over 7 months ago

The UK government has introduced reforms to simplify holiday entitlement and holiday pay calculations in the Working Time Regulations. Specifically, from 1 April 2024, the way that statutory holiday entitlement is accrued for irregular hours workers and part-year workers has changed.

📌TIP: For more information you can read the government's online guidance.

If you subscribe to Leave Management or you use Sage HR Essentials (UK) you can enter the amount of hours an employee has worked to correctly calculate their holiday allowance.

If you subscribe to Leave Management and Timesheets employees can enter their own hours, and you can allocate allowance based on approved timesheets.

This allowance will always round up or down to the nearest hour as explained in Section 3.1 of the government's guidance.

Leave Management (No Timesheets) or Sage HR Essentials

Below is an overview of what you would need to do.

  1. Set up time off functionality in Sage HR.
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  2. Mark relevant employees as employees who work irregular hours.
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  3. Create an irregular hours policy and allocate irregular workers to that policy.
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  4. Allocate time off allowance within the employee's profile.

Leave Management and Timesheets

Below is an overview of what you would need to do.

  1. Set up Leave Management module.
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  2. Set up Timesheets module.
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  3. Create an irregular hours policy based on timesheets and allocate workers to that policy.
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  4. Allocate time off allowance within the employee's profile.

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