Holiday Scheme
- Mark Holland (Unlicensed)
Introduction
The purpose of this section is to describe how holiday pay is calculated and how you can configure InPay to support your holiday scheme.
The Working Time Regulations mandate that agency and freelance workers have the right to 5.6 weeks paid leave each year. Some workers may qualify for additional paid holiday where they qualify under the AWR regulations for a role that has a higher level of holiday.
InPay allows you to set up a number of different schemes to meet your requirements. Some attributes of the scheme can be overridden on a per employee basis where required. InPay allows you to specify which types of pay attract holiday and which are excluded.
The calculation of holiday pay can appear to be complex. The rules mean that the holiday pay is calculated using the average of qualifying pay over the previous 52 weeks. If no work is undertaken by an employee in a week, the period is extended back until such point as 52 weeks have been found where the employee has worked or no more periods are available.
There are 2 scheme types available in InPay, Hourly and Pay Frequency based. The Hourly scheme is recommended as it is more intuitive. Also only with the hourly scheme can one scheme be used for multiple pay frequencies and the accrual percentage be set at placement level (InTime clients only)
2. Adding a Worker to a Scheme