Recent UK legislation has determined time off for hourly paid employees in the uk should be calculated using the 52 week average method. A detailed look at the legislation is available here, it is worth reading in full.
Keeping track of this calculation can be complex, especially as it differs for each employee, so we’ve added a report to Bizimply for our UK customers that calculates employee holiday entitlement using the 52-week average method. A detailed look at how this report can be created and used to update holiday entitlements in Bizimply is available here.
The reference period for this legislation is a maximum of 52 weeks, counted backwards from the current week. When calculating an employee’s 52 week average holiday entitlement, it is crucial to ensure each week included in the calculation meets the legislation criteria. To make the calculations in your 52 Week Average report more transparent, we have created a separate report which will list each week included in the calculation, alongside which weeks have been excluded and why.
In this article, you will learn:
Which weeks can be included in the 52 week average?
There are several reasons weeks may not be eligible to be included in the 52 week average:
Weeks are not counted if the worker did not work and was not paid.
Weeks which include sick leave are not counted.
Weeks which include holidays are not counted.
Week must be a full work week, partial weeks are not counted.
Weeks that don’t meet the criteria are skipped and the next previous week which meets these conditions should be used. A maximum of 104 weeks can be checked to create a reference period.
If a worker has not been in employment for long enough to build up 52 weeks’ worth of pay data, then however many complete weeks of data they have should be used. For example, if a worker has been with their employer for 26 complete weeks, that will be used as the reference period.
Creating 52 Week Average Reference Period Report
Click on ‘Reports’ on the top navigation bar
On the right side, click on the ‘Employee Reports’ drop-down
Click ‘52 Week Average - Reference Period’
Pick the end date for the report (today’s date suggested), the location, the payroll department and the employees you’d like to include in the report
Paid time off can also be included. This will impact the qualifying weeks of the report.
Click 'Export'
Columns in 52 Week Average Reference Period Report
Week number
Week start date
Hours worked
Days worked
Included - if this week has been included in the report
Reason - why this week was not included in the report, if applicable
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