Restricted Annual Leave (In Weeks)

This guide will be showing you how to calculate your employees leave in weeks using Crystal Payroll and how to manage it moving forward.

First off, the main reason to why you would use this way for calculating leave is so that your business is being compliant to the Holidays Act 2003.

The nature of this feature is to ensure that the employee is at all times entitled to their four weeks of annual leave based on what their contracted "genuine working week" is.

For example, if an employee has received their four weeks of annual leave from working for 12 months based off of a regular working week of 20 hours, they would have 80 hours now available to them. If their hours are then changed to 40 hours then their entitlement would then update to be for 160 hours.

This is commonly known as "Annual Leave in Weeks" and is considered the most compliant way of measuring leave as it ensures employees will always have 4 weeks of leave based on their current contracted working week.

How to Set It Up


First go to "Company Settings" - "Payroll Settings" - "Leave Settings".

Tick the box labelled "Update Leave Entitlement Based on New Default Hours"

Do note that: You need to make sure that all employees have this next option set up.

Go to "Employee Settings, and then "Employee Details".

Under "Other Details", click "Default Entitlement".

Make sure to select "Show Entitlement as" - "Weeks".

Then enter the number of hours that would make up a week (whether its the default hours or and average)

An Example of How It Works


This function allows you to enter an employees new default hours and the system will seamlessly update the entitlements that have already occured so that it still represents the equal entitlement but at the different hours.

For example, if an employee received 4 weeks of annual leave from their first year of employment based off of a 40 working week, and afterwards their hours are changed down to 20 hours. Their entitlements will automatically make an "Special Adjustment" to make the employees balance represent 4 weeks but using the new entered "Default Hours".

Here is the function in action:

"Employee Settings" - "Employee Details" - "Default Hours".

The green box above has been inputted by the user to indicate the employees new "Default Hours". The red box is the original Default Hours of 40.

"Employee Settings" - "Employee Details" - "Default Hours".

The green box above was automatically entered by the system to account for the new "Default Hours" entered. This way the employee would still have 4 weeks of leave but based on 20 hours. The red box is the original entitlement based from the original 40 hours.

Payslips and other forms of reporting will also be updated at the time of the default hours changing, so that reports are kept up to date of any employee changes.

Here is an example of a payslip before the change of default hours.

Now here is a payslip from the week after and also the default hours change. The second payslip also has the correct accrued balance even with the change of default hours from 40 to 20.