Note: This feature is for UK customers only.
Recent UK legislation has determined time off for hourly paid employees in the UK should be calculated using the 52 week average method. 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 the legislation is available here, it is worth reading in full.
Additionally, we’ve also added a 52 Week Average Reference Period report, which explains how many weeks are being used to calculate an employee’s 52 week average, which weeks are not included and why. Further information on this report is available here.
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.
Generating a 52 Week Average Entitlement Report
Click on ‘Reports’ on the top navigation bar
On the right side, click on the ‘Employee Reports’ drop-down
Click ‘52 week average’
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.
Select Standard Allowance Of Annual Days or Accrued Hours (more information about Time Off settings available here
There are two options for creating a 52 Week Entitlement Report, based on how you wish to allot time off: Standard Allowance Of Annual Days or Accrued Hours. Below is a list of information included in each report.
Accrued Hours Report
Existing Information
Bizimply Employee ID
Employee Number
First Name
Last Name
Time off setting
Accrual % - Note: Accrual percentage should be set at zero if an employee’s holiday entitlement is calculated using 52 week average
Payroll Department
Location
Employee start date
Calculations made when the report is generated
Number of complete weeks since the start of time off year - Count of full weeks since time off year started take into consideration the employee start date. If the employee started after the time off year started then we do not count those weeks into this.
Number of Qualifying weeks - Count of qualifying weeks capped at 52
Total Reference Period Hours to date - total number of hours from qualifying weeks (Total from column C in reference period report - hours from weeks where no was selected in column E)
Total Days worked in Reference Period to date - Count of days with hours worked from qualifying weeks (Total from column D in reference period report - days from weeks where no was selected in column E)
Average Weekly Hours - The total hours divided by the number of qualifying weeks
Average Days Per Week - The total days divided by the number of qualifying weeks
Average Hours in a Working Day - Average weekly hours divided by average weekdays
Projected annual Entitlement Hours - average weekly hours multiplied by 5.6 (the statutory minimum number of weeks holiday in the UK)
Entitlement earned per week - annual entitlement hours divided by 52
Entitlement earned per month - annual entitlement hours divided by 12
Entitlement earned per quarter - annual entitlement hours divided by 4
Time off Adjustments - Adjustments that will bring current entitlements in line with 52 week average, this is the column to include when importing holiday entitlements
Estimated annual entitlement less adjustments - annual entitlement hours minus adjustments
Standard Allowance Of Days Report
Existing Information
Bizimply Employee ID
Employee Number
First Name
Last Name
Time off setting
Payroll Department
Employee start date
Calculations made when the report is generated
Number of complete weeks since the start of time off year - Count of full weeks since time off year started
Number of Qualifying weeks - Count of qualifying weeks capped at 52
Total Reference Period Hours to date - total number of hours from qualifying weeks (Total from column C in reference period report - hours from weeks where no was selected in column E)
Total Days worked in Reference Period to date - Count of days with worked hours from qualifying weeks (Total from column D in reference period report - days from weeks where no was selected in column E)
Average Weekly Hours - total hours divided by number of qualifying weeks
Average Days Per Week - total days divided by number of qualifying weeks
Average Hours in a Working Day - average weekly hours divided by average weekdays
Projected Annual entitlement days - average weekly days multiplied by 5.6 (the statutory minimum number of weeks holiday in the UK)
Entitlement earned per week days - annual entitlement days divided by 52
Entitlement earned per month - annual entitlement days divided by 12
Entitlement earned per quarter - annual entitlement days divided by 4
Time off Adjustments - Adjustments that will bring current entitlements in line with 52 week average, this is the column to include when importing holiday entitlements
Estimated annual entitlement less adjustments - annual entitlement hours minus adjustments
Import Holidays Adjustments
After calculating an employee’s entitlements using a report, their new entitlements can be updated in Bizimply using an import. There is a step-by-step guide to importing holiday adjustments available here.
Specifically for 52 Week Average Report, the Time off Adjustments figure (column U in the Accrued Hours report and column T in the Standard Allowance Of Days report) is the relevant figure. Enter this figure in either the hours or days column, depending on the original report, to make the adjustments in line with an employees 52 week average entitlement.
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