The basic condition for an employee to be entitled to annual leave or a pro rata share of it is that he or she performs work for 4 weeks within the calendar year within the scope of the fixed weekly working time or shorter weekly working time.
Annual leave vs. pro rata leave
Employees who are employed in an employment relationship are entitled to annual leave. The basic condition that an employee must fulfil in order to be entitled to annual leave or a pro rata part thereof is that he or she performs work within the calendar year for 4 weeks to the extent of fixed weekly working hours or shorter working weeks. Once an employee has worked for his or her employer within the relevant calendar year at least 4 times their agreed weekly working hours, he is entitled to a proportionate part of the holiday.
How is it determined how many hours an employee must work for an employer to be entitled to pro-rata leave?
4 x agreed weekly working hours (or shorter weekly working hours)
For every weekly working hours worked (shorter working week), the employee is entitled to one and two-twentieths fixed weekly working hours or shorter weekly working hours multiplied by the amount of leave, to which the employee is entitled in the calendar year in question.
Example 1:
The employee works as a teacher (8 weeks' leave) and her employment ends on 30 June 2023. Her agreed weekly working time is 40 hours per week. She will work 26 full weeks, so she is entitled to a proportionate part allowed to the extent of 26 two-and-a-half tenths.
Holiday entitlement = 8 (holiday pay) x 40 (agreed weekly working hours) = 320 hours of holiday per calendar year.
1/52 = 320/52 = 6,153846153 hours
26/52 = 26 x 6.153846153 hours = 159.99999999 (rounded to 160 hours)
The employee is entitled to 160 hours of leave.
Calculation of annual leave
Where an employee works for his employer for 52 weeks within the scope of the fixed weekly working time falling within that period, he shall be entitled to annual leave at the rate of the fixed weekly working time multiplied by the amount of leave to which he is entitled in the calendar year in question.
Example 2:
The employee has a basic holiday allowance of 4 weeks. He has worked 52 weeks for his employer in a calendar year, within the scope of a fixed weekly working time of 40 hours.
Holiday entitlement = 4 (weekly holiday entitlement) x 40 (fixed weekly working hours) = 160 hours.
The employee is entitled to 160 hours of leave in a calendar year.
Example 3:
The employee has a basic holiday allowance of 5 weeks and works part-time for 30 hours per week.
Holiday entitlement = 5 (annual leave in weeks) x 30 (agreed shorter working week) = 150 hours.
The employee is entitled to 150 hours annual leave.
And what about the holiday pay?
Basic area holidays in is 4 weeks in a calendar year. The amount of leave for employees of employers referred to in section 109(3) (salaried sector) is 5 weeks per calendar year. The amount of leave for teaching and academic staff of universities shall be 8 weeks per calendar year.
AVENSIO SW programme
To set the basic holiday rate, use the AVENSIO SW Parameter No 26 - Basic area - weeks. For school organisations with two groups of employees - teachers (8 weeks) and non-teachers (5 weeks), set parameter 26 to 5 weeks of leave. For the function of non-teaching staff you set for the function in the field Weeks of holiday value 1. This instructs the program to look at the settings of parameter 26. educators in the box Weeks of holiday sets the value 8 (vacation weeks).
When calculating the entitlement, the program also uses from the setting of the agreed weekly working time in the box Agreed working hours on the tab Employment - classification (Employee card - Employment relations).
The number of weekly working hours can be found in the window Entitlement and leave balances, in the box Total of whole weeks counted. In the box Holiday entitlement you can see the employee's holiday entitlement in hours.
