Changes to holiday legislation April 2024 - Adjusting your myhrtoolkit account

Whilst the myhrtoolkit system manages the time element when it comes to holidays, i.e. how much time away from work is permitted, the pay element will generally be managed through payroll systems.  However, you may wish to adjust your myhrtoolkit account to better reflect some aspects of the new rules. These are summarised below. 

Reintroducing rolled-up holiday pay for irregular hours and part-year workers 

The new changes enable to use of rolled up holiday pay, but only for irregular hours workers and part-year workers. 
There are several ways that myhrtoolkit can support this change, detailed below:

     1. Use Variable Hours to record hours worked, calculate leave time accrued and allow leave events to be booked within myhrtoolkit. 

If you are wishing to track accrued hours worked, we suggest using the Variable Hours features. This will allow allocated Users to book leave events within the system and support management reporting such as details of hours worked. 
If you wish to do this, set the user to Variable Hours and input the appropriate accrual rate. 
Guide: Variable hours employees in myhrtoolkit.

     2. Use the Variable Hours system to just track hours worked. 

Following the Variable Hours guide above, set the Accrual Rate to 0. 
Note: The User will still see the holiday booking system but will not accrue leave. 

     3. Run all holiday functions as a payroll process 

Within the standard holiday system, set a User’s Holiday Entitlement to 0. 
Note: The User will still see the holiday booking system but will not be allocated a leave entitlement. 

Reintroducing the 12.07% of hours worked calculation method for irregular hours and part-year workers 

See the below details on how myhrtoolkit can support this change for irregular hours and part-year workers

Irregular Hours

This is well supported by the existing Variable Hours feature: Variable hours employees in myhrtoolkit.

Part-Year Workers

This change provides an alternate calculation method to current provision for part-year workers, who are now able to have accrued holiday entitlement based on hours worked, again using the Variable Hours features. 

If you want to use Variable Hours to calculate and manage holiday in the myhrtoolkit system, you will need to set affected users to Variable Hours.

With all the above, we strongly recommend seeking professional HR advice to understand the appropriate calculation method. 

Related articles

Recording hours worked for Variable Hours employees

A guide to hours status

How to manage employee holidays - Managers