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Finance | Project Operations, Human Resources, ...
Suggested answer

Pro-rated leave calculation on leave type that includes bank holidays

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Posted on by 5

I have a question about the way leave is calculated for FTE 1 employees working a partial leave year with a regular mon-fri working pattern.

The leave plan for the user awards 41 days of leave with UK bank holidays deducted in the leave type. The leave year runs from 1/4/2021 to 31/3/2022 and the staff member is employed from 1/9/2021 (i.e. 274 days of the leave year with 4 bank holidays remaining). Leave is accrued at the beginning of the leave period and the amount accrued for the staff member is 26.78 days. The problem is that the only way that I can reach this amount is:

41 * 274/365 – 4 = 26.778 days

So it would seem that the leave calculation has prorated the leave allowance that includes the bank holidays instead of subtracting all bank holidays first and then calculating the proportion of bookable leave remaining. I would expect it to calculate the leave accrual as follows:

(41 - 8) *  274/365 = 24.772 days

If this is correct it's an issue as it skews the amount of leave accrued depending on how many bank holidays have passed when the employee joins.

Can anyone else confirm this?

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  • Suggested answer
    cruk-fleming Profile Picture
    5 on at
    RE: Pro-rated leave calculation on leave type that includes bank holidays

    Just as an update to this issue:

    This was submitted to Microsoft as a bug but they have refused to adjust the calculation because they believe  that everyone should be "entitled to the same amount of time off regardless of when they are hired". This is nonsense and inconsistent as staff on non inclusive leave plans don't get pro-rated bank holidays for periods where they are not employed.

    I've submitted a proposal to correct this issue so please vote for it if it affects your setup.

    experience.dynamics.com/.../

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