In SelectHR, an employee’s holiday entitlement is defined by the settings on their assigned holiday rule. The overall entitlement value is built up from several different parts within that rule.
These parts can include:
Basic holiday entitlement defined in the holiday rule.
Public holiday adjustments based on the method chosen.
Length of service (LOS) additions
Carryover of unused or overused entitlement from the previous holiday year.
The sections below explain how each of these parts contribute to the overall entitlement and how the system applies the formulas.
Basic entitlement formula
To calculate the percentage of the year worked, divide the number of days worked in the holiday year by the total number of days in the holiday year.
Below is the formula for how days and hours entitlement are calculated.
Entitlement unit | Calculation |
Days | (Basic entitlement on the holiday rule x holiday FTE on the career record) x % of the year worked. |
Hours | (Notional hours per day on the working pattern type x basic entitlement on the holiday rule x FTE on the working pattern) x % of the year worked. |
🤓 Tip: You can review an employee's basic holiday entitlement calculation in the pro rating tab of their holiday history record to check how it has been calculated.
Carryover
Carryover values are determined by the settings on an employee's assigned holiday rule.
The settings on the rule will determine how much unused holiday is carried over into the next holiday year and when it needs to be used by.
Carryover will expire if it is not used before the Use by Date.
If an employee has taken more holiday than their entitlement, the negative balance will automatically roll forward into the next holiday year and remain in place until the excess leave has been recovered.
To correct this, you can override a carryover value manually.
Public holiday entitlement options
When creating a holiday rule, you will have the option to set a holiday compensation rule. The four options are detailed below.
Statutory
This option creates a public holiday adjustment based on the employee’s full-time equivalent (FTE) and the total number of public holidays in the holiday year.
The employee is credited for every public holiday non-working date within the current holiday year.
Calculation (days): (Public holidays in the holiday year × holiday FTE) − public holiday entitlement taken
Calculation (hours): (Public holidays in the holiday year × notional hours per day) − public holiday entitlement taken
Simple
This creates a public holiday adjustment, if needed, based on the employee’s FTE and the total number of public holidays during their period of employment in the holiday year.
Employees are only credited for public holidays that fall within their period of employment. For example, a leaver would not receive credit for holidays after their leave date.
Calculation (days): (Public holidays during period of employment × holiday FTE) − public holiday entitlement used
Calculation (hours): (Public holidays during period of employment × notional hours per day) − public holiday entitlement used
Exact
This is the most precise method. A public holiday adjustment is created based on the employee’s FTE and only the public holidays that fall on days they are normally scheduled to work.
This works similarly to the simple method, but is further refined to ignore public holidays that fall on non-working days according to the employee’s pattern.
For example, if New Year’s Day falls on a Monday and the employee doesn’t normally work Mondays, no credit is given.
Calculation (days): (Public holidays the employee is scheduled to work × holiday FTE) − public holiday entitlement used
Calculation (hours): (Public holidays the employee is scheduled to work × notional hours per day) − public holiday entitlement used
None
No adjustments are made.
If you don’t use public holidays in SelectHR, we strongly recommend ensuring that your employees’ basic entitlement meets at least the legal minimum.
Calculation (days): Not applicable.
Calculation (hours): Not applicable.
🤓 Tip: Public holidays adjustments can be viewed within the Holiday Additions process.
Length of service addition calculations
LOS additions are generated based on the continuous service date on the employee's detail record, and the LOS rules you apply to the employee's holiday rule.
To find the continuous service date, follow the steps below.
Click Employees, then click Employees and select Details.
Within the employee's record, click Work.