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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up Statutory Holiday Pay (UK)

Steps: Set Up Statutory Holiday Pay (UK)

You can set up Workday to calculate payments for workers with absences that qualify for holiday pay, as part of the standard payroll process.
Workday recommends that you complete the Next Level series on UK Statutory Holiday Pay on Workday Community. This series contains detailed information on configuring statutory holiday pay.
We also recommend that you work with Workday Professional Services, or your consultant, to set up your holiday pay processing.
  1. Work with your absence administrator to create a custom absence occurrence for all time offs that impact statutory holiday pay.
    We recommend that you create a custom occurrence for UK Statutory Holiday Pay to keep it separate from other occurrences and any edits by other users.
  2. Access the
    Create UK Statutory Holiday Pay Work Period Calendar Rule
     task.
    Create holiday pay calendar rules to assign holiday pay work period calendars to workers.
    Workday can select a worker using 2 or more eligibility rules. To avoid inconsistent holiday pay results, ensure that workers aren't eligible for more than 1 calendar.
    Security:
    Set Up: Payroll (Holiday Pay) - UK
     domain in the UK Payroll functional area.
  3. Access the
    Create UK Statutory Holiday Pay Work Period Calendar
     task.
    From the related actions menu of the calendar, select
    UK Statutory Holiday Pay Work Period Calendar
    Build UK Statutory Holiday Pay Work Period Calendar Events
     to determine when weekly periods start and end.
    Unless you already have weekly schedules that start on another day, Workday recommends that you consider the BEIS guidance for the start date for your week. Example: Consider starting weeks on Sunday.
    To include historic pay data, select a historic
    Start Date
    . Ensure that the day matches your normal weekly start day. Example: If your current weeks start on a Monday, select a historic Monday as the start date.
    Workday recommends you create enough periods to cover both your historic records and a reasonable amount for future, ongoing work. Example: If your
    Start Date
     is 2 years in the past, enter 208 in the
    Number of Work Periods
     to create 2 years of both past and future weekly periods.
    Workday uses the calendar periods to prorate earnings into weekly results for statutory holiday pay calculations.
    Security:
    Set Up: Payroll (Holiday Pay) - UK
     domain in the UK Payroll functional area.
  4. (Optional) Create weekly shadow earnings for worker pay.
  5. Split holiday pay related earnings into weeks. These earnings can be either the original source earning or newly created, related shadow earnings.
    If you edit an existing source earning, select
    Add New Effective Date
     and enter the current or future date from which you'll start using statutory holiday pay.
    On the
    Effective Dated
     tab of the earning, in the
    Holiday Pay
     section, select
    Split by UK Statutory Holiday Pay Work Period Calendar
    .
    Workday recommends that, where possible, you create shadow earnings instead of splitting existing monthly or salary earnings to result in weekly amounts.
  7. Create pay component groups (PCG) for all earnings and hours that represent payments to include in statutory holiday pay calculations.
    Ensure that you split all earnings in these PCGs by weeks.
  8. (Optional) Create a PCG for the periods that you want to assess for holiday pay calculations.
    Ensure that you split all earnings in this PCG by holiday work period weeks.
  9. (Optional) Create a PCG for any earnings or periods that you want to exclude from holiday pay calculations. Example: To exclude weeks that include partial sick pay.
    Ensure that you split all earnings in this PCG by weeks.
  10. Access the
    Create UK Statutory Holiday Pay Configuration
     task.
    Select the earnings PCGs, hours worked PCGs, and absence occurrences for holiday pay.
    You can create multiple configurations to cover your different holiday pay needs. Example: Pensionable and nonpensionable earnings for holiday pay.
    If you have workers in Northern Ireland, you can select the
    Northern Ireland Reference Period
     check box. This uses the 12 week reference period to calculate average pay. When you have workers in both Northern Ireland and the rest of the UK, you might need to set up separate configurations for both groups of workers. Contact Workday Professional Services, or your consultant, before setting up either configuration.
    Security:
    Set Up: Payroll (Holiday Pay) - UK
     domain in the UK Payroll functional area.
Enter workers' historic statutory holiday pay.