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Administrator Guide
Last Updated: 2024-09-20
Setup Considerations: Statutory Holiday Pay (UK)

Setup Considerations: Statutory Holiday Pay (UK)

You can use this topic to help make decisions when planning your configuration and use of statutory holiday pay for UK-based workers. It explains:
  • Why to set it up.
  • How it fits into the rest of Workday.
  • Downstream impacts and cross-product interactions.
  • Security requirements and business process configurations.
  • Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is

Workday enables you to calculate holiday time taken and rates of pay based on UK statutory requirements. Workday uses:
  • Absence to calculate the amount of holiday time off to pay and the associated occurrences.
  • Workday Payroll for the UK to calculate the rates of pay for holiday time off.

Business Benefits

The statutory holiday pay feature helps you calculate UK workers' statutory holiday pay, based on the requirements described in the UK government's Taylor report and the Department for Business, Energy, and Industrial Strategy (BEIS) guidance.
The statutory holiday pay feature ensures efficient and flexible management of holiday pay by delivering regular updates to maintain regulatory compliance and enabling you to:
  • Easily manage worker eligibility.
  • Calculate and view weekly earnings data to determine how earnings impact holiday pay.
  • Identify relevant earnings for holiday pay calculations.
  • Determine periods and earnings to include and exclude from holiday pay assessments.
  • Calculate retroactive payments based on earning date rather than payment date.

Use Cases

  • Pay a worker’s statutory holiday pay based on UK regulations, guidance, and best practice.
  • Include or exclude specific earnings from the holiday pay calculation. Example: Overtime.
  • Identify relevant weeks for holiday payments. Example: Workers with irregular working patterns.
  • Determine the rate of pay for unused holidays when workers leave your employment.

Questions to Consider

Questions
Considerations
Which holidays do you want to include in the statutory holiday pay calculation?
Workday takes account of holidays that you include in the absence occurrences that you create for statutory holiday pay usage. You indicate which absence occurrences are for holiday pay use when you configure holiday pay.
How does pay frequency impact on statutory holiday pay calculations?
Workday processes statutory holiday pay weekly, regardless of your pay frequency.
Workday enables you to calculate weekly earnings. You can:
  • Split earnings based on a predefined holiday pay work period calendar.
  • Create shadow earnings, which you can split based on the predefined holiday pay work period calendar. Creating shadow earnings prevents you from splitting the original earnings.
On the
Create Earning
 or
Edit Earning
 task, select the
Split by UK Statutory Holiday Pay Work Period Calendar
 check box to factor in all earnings that qualify for holiday pay assessment or calculation.
Do you want to include or exclude certain types of pay or certain weeks from your holiday pay assessment?
You can determine which earnings and periods to include or exclude by creating pay component groups (PCGs) and linking them to a holiday pay configuration. You can create these PCGs that you link to specific fields on the
Create UK Statutory Holiday Pay Configuration
 task:
  • A PCG for all earnings to include in holiday pay calculations. You can then link this PCG to the
    Earnings Pay Component Group
     field.
  • A PCG to exclude any week or earnings from the holiday pay assessment period. You can then link this PCG to the
    Work Period Exclusion Pay Component Group
     field.
Example: You can exclude a week with unpaid or partial time off from a holiday pay assessment period by adding an absence component-related calculation to an earning. You can then add the PCG for the excluded period or earnings to the pay component-related calculation.
How many different configurations of holiday pay apply to your workers?
Workday enables you to create as many different holiday pay configurations as you need.
Example: You can create separate configurations for pensionable and nonpensionable earnings.
If you have workers in both Northern Ireland and the rest of the UK, you might need to set up separate configurations for both of groups of workers.
Each separate configuration determines:
  • The payout earning.
  • Which earnings to include or exclude.
Load historical pay details separately for each configuration.
If you use Workday's legacy UK Holiday Pay, and are moving to use UK Statutory Holiday Pay, will you have retro calculations that impact the legacy time frame?
Statutory Holiday Pay doesn't look at legacy pay period history. Load new, weekly, history records for any retro calculations that refer to the legacy time frame.
Do you want to convert your data into the Statutory Holiday Pay format?
You can use the
UK Statutory Holiday Pay Data Migration
 task to:
  • Convert your existing data for a UK statutory holiday pay configuration, date range, and pay group.
  • Use the converted data to create workers' statutory holiday pay history.
The
UK Statutory Holiday Pay Data Migration
 task doesn't allocate specific weekly amounts when you create new data but rather provides average amounts spread across the period.
When you encounter significant data errors while importing large volumes of historical pay data, contact Support to delete the history.

Recommendations

Work with Workday Professional Services or your consultant to set up statutory holiday pay processing.
Adhere to BEIS holiday pay guidance to identify workers and earnings to include in statutory holiday pay processing.
Consider how much of your payroll history to gather and how to reflect it in a weekly format in order to meet BEIS recommendations.

Requirements

Provide worker earnings for calculating statutory holiday pay in weekly amounts.
You must have both Workday Payroll for the UK and Absence to use the statutory holiday pay functionality.
Use Workday Payroll for the UK to set up:
  • Calendars, rules, and events.
  • Earnings, calculations, and eligibility.
  • Pay component groups.
  • Holiday pay configuration.
  • Holiday pay history.
  • Termination payout of holiday pay.
Use Absence to configure:
  • Absence occurrences.
  • Holiday time offs.
  • Termination payout plans.

Limitations

Amending worker history doesn't trigger any retro processing. After you change a worker's holiday pay history, run a pay calculation to include the changes. To ensure that Workday includes history changes, leave the
Smart Calculation
 options clear.
UK statutory holiday pay uses effective dates, and Workday retro processing picks up changes. However, the existing Workday legacy UK holiday pay doesn't use effective dates, so ensure you inactivate any legacy configurations before activating UK statutory holiday pay.

Tenant Setup

If your shadow earnings don't display in workers' pay results, review your configuration in
Tenant Setup
Payroll
Administrator Results
Disable Payroll Result Profile
.

Security

Domains
Considerations
Set Up: Time Off (General)
 domain in the Time Off functional area.
Enables you to configure absence occurrences and view absence occurrence types.
Set Up: Payroll (Calculations - Payroll Specific)
 in the Core Payroll functional area.
Enables you to configure:
  • PCGs to gather related earnings and calculations for ease of processing.
  • Source and shadow earnings.
Set Up: Payroll (Holiday Pay) - UK
 in the UK Payroll functional area.
Enables you to set up specific statutory holiday pay items. Examples:
  • Holiday pay configuration.
  • Links between source earnings and related shadows.
  • Work period calendars and rules.
Worker Data: Payroll (Non-Company Specific) - UK
 in the UK Payroll functional area.
Enables you to:
  • Adjust a worker's historical pay data.
  • Mass load and retrieve historical pay data.
  • Run reports.

Business Processes

To include unused holiday time off at termination in holiday pay assessments, add a step with the
Adjust Time Off Balances
 service to the
Termination
 business process.

Reporting

Reports
Considerations
View Payroll Results
Use the
UK Statutory Holiday Pay
 tab on this report to identify statutory holiday pay weekly earnings that occur in the relevant period.
View UK Statutory Holiday Pay Configuration
Use to verify the payroll data Workday uses to calculate statutory holiday pay.
You can check the:
  • Absence occurrence types.
  • Payout earnings used to disburse holiday pay to workers.
  • PCGs for earnings and hours.
  • PCGs for work period assessment inclusion and exclusion.
View UK Statutory Holiday Pay Details for Worker
Use to troubleshoot statutory holiday pay calculations for individual workers.
You can review calculation details and inputs. Example:
  • Amounts excluded from and included in the pay assessment.
  • Up to 104 weeks and the associated holiday work period calendar weeks.
  • Worker statutory holiday pay history data.
View UK Statutory Holiday Pay Shadow Earnings
Use to identify which source earning a shadow earning is linked to.
View UK Statutory Holiday Pay Work Period Calendar
Use to view the breakdown of weeks in the covered work period and identify the associated calendar rule.
View UK Statutory Holiday Pay Work Period Calendar Rules
Use to view the calendar associated with the rules and conditions that Workday uses to assign the calendar to workers.

Integrations

Use these web services to mass load and retrieve workers' historic holiday pay data:
  • Get UK Statutory Holiday Pay History
  • Import UK Statutory Holiday Pay History

Connections and Touchpoints

Features
Consideration
Absence
Holiday pay uses Absence to provide details of:
  • Absence occurrences.
  • Holiday time offs.
  • Termination payout plans.
Human Capital Management
Holiday pay uses Human Capital Management data to provide details of:
  • Staffing
  • Compensation
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.