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Holiday Allowance and Accrual

KOBAS makes it easy to manage your employees’ holidays. Here is a brief guide on how Kobas calculates the rate at which holidays are accrued and how much an employee gets paid per day of holiday.

Holiday Allowance

The amount of holiday allocated to an employee depends on their contract type and number of days per week that they work. When you onboard a new staff member in Kobas, we will ask you to define their contract type, and this will provide further options on their holiday allowance. We will recommend the minimum legal holiday allowances for the number of days per week your employee works, but you can choose to enter a higher number if desired.

For information on the law around Holiday Allowances please see: https://www.gov.uk/holiday-entitlement-rights/entitlement

Full time

Since the law states that employees are entitled to 5.6 weeks of statutory holiday a year, the default Full Year Allowance for a staff member in Kobas is 28 days (the minimum holiday allowance for a full time employee).

Part time

Depending on the number of days worked per week, we recommend the following allowances:

4 days worked per week = 23 days holiday
3 days = 17 days
2 days = 12 days
1 days = 6 days

Zero hour

We initially allocate no holiday allowance to zero hour staff, as it is accrued through hours worked. See below for more details.

Holiday Accrual

Full and part time

Holidays accrue automatically based on two things; an employee’s total holiday allowance for the year (see above) and at what point in the calendar year the employee started work.

For example, if your holiday year runs from 1st January – 31st December and two full time employees start on 1st January they will accrue their 28 days at the same rate as the year progresses.

If an employee were to start full time work on 1st July, they would accrue 14 days over the course of the remainder of the year.

Zero hours 

Someone on a zero contract will likely be working irregular hours throughout the year and as such doesn’t fit the same holiday accrual and allowance methods as full or part time contracted staff. Kobas deals with zero hour staff and holidays as follows:

For every full hour worked, a zero hour staff member accrues their legal entitlement of 7.26 minutes of holiday. We increment their accrual and allowance figures simultaneously, based upon hours worked since the start of the holiday year.

Calculating the Value of Holiday Days

Full and part time

The value of holiday days are variable in value and depending on the employee’s work history. Each day of holiday taken is based on an employee’s pay rate and average shift length over the 13 weeks prior to redeeming the holiday.

For example, an employee may take a holiday in June having worked an average of 6 hours per shift at £8 per hour over the previous 13 weeks. In this case, each day of holiday will be paid at a rate of 6 hours of work at £8 per hour. However, the same employee might then take a holiday in December having worked an average of 10 hours per shift over the previous 13 weeks. This time, each day of holiday will be paid at the rate of 10 hours of work at £8 per hour.

Zero hours

A standard holiday day in Kobas for zero hour staff is 6 hours, so they will have to accrue at least 6 hours of holiday in order to request a paid day off , i.e. they need to have accrued the full day before they are entitled to it.

When payroll is run, any holiday days for zero staff will be valued at 6 hours of work in line with the above.

Switching Contract Types

You can change an employee’s contract type in Kobas Cloud by visiting Staff > Current Staff and viewing their profile. Edit the pay details from the Staff Details list on the left of the page.

When switching from either full or part time to zero hours (or vice versa), we snapsnot any remaining holiday allowance and include it in the allocation for the remaining part of the year. After a switch, the holiday accrual method will reflect the current contract type as described above.

For example, an employee is full time for the first 6 months of your holiday year and then switches to zero hours for the remaining 6 months. They start their zero hour contract period with 14 days holiday allowance and accrual from their full time period. After this the holiday allowance and accrual increment based on hours worked, in line with the zero hour system.

Amending Holiday Allocation

You can edit the holiday allocation for an employee on their staff profile in Kobas Cloud. This includes changing their allowance or adding any days to ‘carry over’ from the previous year, which get added to their allocation on top of their normal allowance.

To do this, go to Staff > Current Staff and select the employee’s profile. Scroll down and you will see the Time and Attendance table on the left of the page where you can make the changes.