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Bank holidays not prorating correctly

Resolve issues where bank holidays aren’t included correctly in pro-rated holiday entitlement for new starters.

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Written by Charlotte Alderson

If a user’s holiday entitlement looks incorrect, the issue may relate to how the system handles bank holidays within the allowance profile. Different rules calculate bank holidays in different ways, which can affect entitlement.

📌 Note: You need HR Admin permissions to update allowance profiles and user allowances.

Understand how bank holidays are calculated

The system can treat bank holidays in different ways depending on the rule applied.

For example, a user who starts late in the year may:

  • Accrue a small portion of their yearly allowance.

  • Still receive bank holidays that fall during their employment.

This can lead to:

  • A positive balance when you expect a negative one.

  • Bank holidays appearing to be “excluded” from prorated calculations.


Check the allowance profile setting

  1. Click HR Admin, then click Setup.

  2. Click Allowance Profiles.

  3. Find the relevant profile.

  4. Check the value in Bank Holiday effect on part timers.


Change how bank holidays are treated

To include bank holidays in the prorated allowance:

  • Select Bank holidays count as part of the holiday allowance.

  • Click Save.

This ensures:

  • Holiday and bank holidays are calculated together.

  • Users accrue entitlement consistently across all leave types.


Understand alternative behaviour

If you use Bank holidays earned are pro rated:

  • The system calculates non-bank holiday entitlement separately.

  • It then applies bank holidays on top.

This can result in:

  • Users receiving bank holidays without sufficient accrued allowance.

  • Unexpected positive balances.


Apply updated allowances

After you change the allowance profile:

  • Review the suggested allowance for affected users.

  • Apply the updated value if required.

📌 Note: The system won’t automatically update allowances after you change the profile.


Understand reporting impact

  • Bank holidays don’t appear as booked leave in allowance breakdowns.

  • This can make totals appear inconsistent at first glance.

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