Hours status – Pay and holidays

The relationship between Hours status with pay and holidays on myhrtoolkit

Myhrtoolkit’s Hours Status is a powerful property assigned against every employee, and is a major component of pay and holiday entitlements.

This page is a supplement to the Guide to Hours Status and the Hours Status Reference Guide. Here we explain the relationship between Hours status and pay/holiday entitlement.

Hours Status

An Hours Status entry has a start date and a percentage value (or a Variable Hours indicator). The current value will run indefinitely or until a new entry with a 'newer' date is encountered.

Additions and changes to Hours status can only be completed via the Hours status page (Management > Hours status). The Hours status page displays each entry in chronological order with the oldest start date at the top (this entry will be marked (start date) and is added during the setup process). From this, the system can work out the appropriate Hours status value for any date.

Example

A company has a January to December holiday year.

John began the current holiday year working part time (80%) but changed to part time (40%) in July. For John’s holiday entitlement to be calculated correctly, both part time percentages need to be recorded.

To do this, navigate to Management > Hours status. From there, locate John and use the "Date change is effective" box to select the start of the holiday year and press submit (if the employee started part way through the holiday year, select "Amend" under the start date instead).

  1. Specify the first part time percentage. In this example, it is 80% so we would simply enter "80" and press Submit. The system will then ask if you’d like to apply this part time percentage to the employee’s holiday entitlement, select yes (this can be changed later if required).
  2. Add the second part time percentage (40%), using the "Date change is effective from" box to specify when they changed to 40% and press submit. Then enter the part time percentage which is "40" in this case and press Submit.

When you move on to enter the Employee’s holiday entitlement and proceed to Stage 2 of the Setup Phase, the Toolkit will automatically calculate their pro rata holiday entitlement, based on the information you’ve entered.

Pay

Pay entries can be added manually and include a start date (via Management > Pay and benefits). The page organises these entries in chronological order with the oldest start date at the top, and uses this to work out the 'current' pay value.

If a new Hours Status record is added, the existing pay entry will be 'split,' and a new pay entry will automatically be created to reflect the changed percentage.

Holiday

Holiday entitlements can be added manually (Management > Holidays > Employee holiday entitlements) and include a start date. The entitlements are displayed in chronological order starting with the oldest at the top.

If a new hours status record is added, a new entry is added into the holiday entitlements to reflect this. There is a toggle to choose whether the system will pro rate a user’s entitlement based on their hours status record (only if part time).

It is important to keep an employee's Hours Status up to date to ensure their Holiday Entitlement remains correct.

Note – Adding or amending holiday entitlement records doesn’t affect or change anything in hours status. If you add or amend a holiday record that is in the past, it will reflect the hours status entry that was 'current' at the date you entered.

Hours status does not affect periods of Variable Hours