A holiday allowance is an annual holiday entitlement in days or hours, which an employee can spend by requesting time off. An employee can only have one allowance for each year.

⚠️ Your organisation's holiday year runs from a set date (such as 1st January) and is set by Rotaready on your behalf.

Rotaready tracks the amount of holiday booked by an employee and updates their allowance in real-time when a request is placed, accepted or rejected. They can't request more than their entitlement unless an overspend limit is set.

There are several different types of holiday allowance, designed to support different scenarios.

👀 Find out more in our Spotlight Session 'Honing in on holiday allowances'.

Allowance types

Standard allowance

This gives someone a fixed, annual entitlement (such as 28 days or 200 hours).

They can't request any more holiday than the entitlement permits, unless you've specified an overspend limit, which allows them to request more than their entitlement by the amount you specify.

Standard allowance (released monthly)

This gives someone a fixed, annual entitlement (such as 28 days or 200 hours) but crucially the amount available to them is released 1/12th at a time, on a monthly basis.

This prevents them from requesting more holiday than they've earned, e.g. requesting 10 days within their first month of employment.

As an example, someone with a 28 day entitlement would receive 2.33 days per month (28 divided by 12).

Auto-accrued weekly

This gives someone an entitlement that is automatically topped-up on a weekly basis, according to the hours they work each week.

When you sign-off a week, Rotaready will calculate the holiday accrued by each employee based on the hours they worked. In the UK the holiday accrual rate is 12.07% but in other jurisdictions this will be different. You can optionally override this rate on the allowance.

As an example, someone who joins your organisation will start with an entitlement of 0 hours. If they work 32 hours in their first week of employment, Rotaready will automatically add 3.86 hours of holiday to their balance (32 multiplied by 12.07%).

You can optionally specify an accrual limit, which sets an upper threshold for how much holiday the allowance can automatically accrue.

Learn more about holiday accrual.

Rolled-up (pay as you go)

This is the same as the auto-accrued allowance type, except the employee will not be able to book holiday from this allowance. Instead, it is assumed that the employee will be receiving pay in lieu of holiday.

When generating a timesheet, the accrued holiday pay will appear in addition to the employee's basic pay.

Cost of absence

For all allowance types, the cost of approved absence will be included in the wage spend when viewing a rota or using the cost control tools.

The only exception to this is when holiday smoothing is enabled.

Using allowances

Adding, amending and deleting

  1. Click Staff in the main navigation menu

  2. Search for an employee

  3. Click on the Absence tab

  4. Click on the Holiday allowances tab

  5. Click on the New allowance or Edit button alongside an existing allowance

Once an allowance has been created, the type and year cannot be changed. If you need to change these, just delete the allowance and create another.

⚠️ If you are adding a new allowance for the current holiday year, we will automatically create next year's allowance for you too!

Audit history

Each allowance has an audit history. Rotaready will automatically keep track of when an allowance changes.

This could happen if: a holiday request is placed (used amount debited), a holiday request is rejected/cancelled (used amount credited), holiday accrual occurs (entitlement credited), the entitlement is manually edited.

Working day hours

Employees can book a half day, a day or several days of holiday at a time. However, if their allowance is measured in hours Rotaready needs to know how many hours to deduct for the number of days they are booking.

For this, Rotaready tracks the number of hours each employee works per day, on average.

It's calculated and adjusted automatically whenever you sign-off a week. Rotaready analyses 52 weeks of data by default. An employee needs to have worked a minimum of 5 shifts, otherwise sensible default values are used.

Following the steps below, you can view the values and override them if you desire.

  1. Click Staff in the main navigation menu

  2. Search for an employee

  3. Click on the Absence tab

  4. Click on the Settings tab

  5. Here you can allow Rotaready to automatically calculate the values (in which case they are displayed but not editable) or set them manually.

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