Cascade HR – Pro Rata
Pro Rata functionality
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Contents
PRO RATA FUNCTIONALITY ........................................................................ 1
1.
INTRODUCTION ............................................................................... 3
2.
DEFINITIONS ................................................................................... 4
3.
4.
5.
2.1
F.T.E......................................................................................... 4
2.2
BANK HOLIDAYS ........................................................................... 4
2.3
NORMAL WORKING DAY .................................................................. 4
2.4
MINIMUM DAY UNIT ...................................................................... 5
2.5
START DATES ............................................................................... 5
2.6
ENTITLEMENT .............................................................................. 5
RULES OF PRO-RATA ....................................................................... 5
3.1
ROUNDING................................................................................... 5
3.2
LEAVERS ..................................................................................... 5
3.3
START DATES ............................................................................... 5
CALCULATIONS ............................................................................... 6
4.1
HOW DOES CASCADE CALCULATE THE PRO-RATA DEDUCTION IN DAYS? ......... 6
4.2
HOW DOES CASCADE CALCULATE THE PRO-RATA DEDUCTION IN HOURS AND MINUTES?
4.3
HOW DOES CASCADE ADJUST AN EMPLOYEE’S BANK HOLIDAY ENTITLEMENT? . 8
SAMPLE CALCULATIONS FOR EMPLOYEE SHOWN............................ 10
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Cascade HR – Pro Rata
1. INTRODUCTION
The purpose of this document is to define, illustrate and explain the calculation Cascade performs when pro-rating
an employee’s entitlement to Annual Leave.
The pro-rata functionality is designed to deduct holiday entitlement from part-time employees in as fair a manner as
possible.
THIS DOCUMENT RELATES TO THE PRO-RATA FUNCTIONALITY IN V4.1.x
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2. DEFINITIONS
2.1 F.T.E
The F.T.E. or ‘Full Time Equivalent’ is a number that is stored on the Job & Salary Page. It is calculated in one of two
ways.
1. If the employee does not have a grade associated with her, then the calculation is simply;
The number of hours the employee works
The number of hours the post works
For example, Mary is a Receptionist. Receptionists are contracted to 40 hours per week, although Mary
works 32 hours a week. This means that her FTE value should show as
32/40 = 0.8.
2. If the employee does have a grade associated with them, then any hours value against the grade supersedes
the post value, so the calculation will be;
The number of hours the employee works
The number of hours the grade works
The FTE value is stored on the database to 16 decimal places. Throughout the calculation the FTE is used with
this precision, however the value that is displayed in the system may be to 2dp.
2.2 Bank Holidays
The lists of bank holidays that the calculation uses are maintained in the Administration area of Cascade. The bank
holiday entitlement that a full time employee receives is typically 8 days in the UK, which is given in addition to the
employees annual leave entitlement. When the Bank Holiday entitlement is pro-rated however, the deduction is
made to the annual leave entitlement.
2.3 Normal Working Day
During the calculation of the Bank Holiday pro-rata, there is a requirement for the system to know what value in
hours a Bank Holiday actually has. It is assumed that a Bank Holiday has the value of a standard company day. This
is set as a global value within Administration/Application Data/System Properties/ “Normal Working Day”.
However this can be overridden on an individual basis. There is a field that can be added to the JOB & SALARY
screen via screen designer which again is called “Normal Working Day”. This value should hold the value that a Full
Time person would work.
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2.4 Minimum Day Unit
Another value that might be used in the system is the minimum day unit. This is the minimum unit that an employee
who takes her holiday in days is allowed to use. It is set by default to 0.5, but can also be altered to 1 or 0.25. It is
set as a global value within Administration/Application Data/System Properties/ “Minimum day unit”.
2.5 Start Dates
The pro-rata functionality itself is controlled by two dates in the system properties area of the system:
These dates tell the system which entitlement years should be pro-rated. That is, only entitlement years with a start
date that is on or after this date will be pro-rated.
2.6 Entitlement
The entitlement that an employee receives is comprised of the following constituent parts;
Base Entitlement
Length of Service Adjustment
New Starter deduction
Manual Adjustment
Carry
Any values that are in the Manual or Carry fields are not subject to the pro-rata calculation.
3. RULES OF PRO-RATA
3.1 Rounding
The Cascade system will never reduce an employee’s entitlement through rounding. That is, if Cascade needs to
apply a deduction to entitlement, the system will deduct less to get to the nearest unit. Likewise, if Cascade needs
to apply an addition to an employee’s entitlement, it will add more to get to the nearest unit.
3.2 Leavers
Cascade does not pro-rate for leavers.
3.3 Start Dates
Only entitlement years with a start date that is on or after the start dates in system properties will be pro-rated.
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4. CALCULATIONS
4.1 How does Cascade calculate the pro-rata deduction in days?
Cascade follows a simple procedure to calculate the pro-rata deduction an employee should receive.
1. Cascade calculates the amount of entitlement the employee would receive if they were full time. This is the
total of the basic entitlement plus and length of service additions. For example, 30 days basic entitlement +
6.5 days length of service = 36.5 days
2. Cascade calculates the amount of entitlement that the employee would accrue per day if they were full
time. It does this by dividing the total entitlement by the number of days in the Entitlement Year. For
example, if the entitlement year runs from 01 Jan 2010 to 31 December 2010 = 365 days, the result would
be 36.5/365 = 0.1 days per calendar day
3. Cascade then looks at the employee’s Job and Salary record to determine how many working periods there
are for this entitlement year. For example,
4.
5.
6.
7.
The entitlement year can then be split into 2 work periods based on this data. The first runs from the start of
the entitlement year (01/01/2010) to 22/06/2010, the second from 23/06/2010 to the end of the
entitlement year (31/12/2010).
We can then calculate the full time entitlement for each period by multiplying the number of days in each
period by the entitlement a person is due per calendar day.
The pro-rated entitlement for each period can then be calculated by multiplying the full time entitlement
for each period by the FTE for each period.
The total pro-rated entitlement for the entitlement year is a sum of all of the values for all of the work
periods.
Cascade then calculates what the overall deduction should be, by subtracting the total pro-rated entitlement
from the full time entitlement. This value is then rounded to the nearest minimum day unit.
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A summary of this calculation is below
Period Start Date
#
End Date
Number of days Full Time
FTE for this period Pro-rated entitlement
in Period
Entitlement in
for period
days for period
1 01/01/2010 22/06/2010
173
17.3
1
17.30
0.746666666666667
2 23/06/2010 31/12/2010
192
19.2
14.34
36.5 Total Pro Rated
31.64
Total Full Time
Total Deduction
4.86
Total Deduction
(Rounded)
4.75
4.2 How does Cascade calculate the pro-rata deduction in hours and minutes?
Cascade follows an identical procedure to calculate the pro-rata deduction as above, with the only exceptions being
that all of the calculations use hours and minutes and the final deduction is not rounded to the nearest minimum
day unit. The procedure is as follows;
1. Cascade calculates the amount of entitlement the employee would receive if they were full time. This is the
total of the basic entitlement plus and length of service additions. For example, 225:00 basic entitlement +
48:45 length of service = 273:45
8. Cascade calculates the amount of entitlement that the employee would accrue per hour if they were full
time. It does this by dividing the total entitlement by the number of hours in the Entitlement Year. For
example, if the entitlement year runs from 01 Jan 2010 to 31 December 2010 = 365 days * 24 = 8760, the
result would be 273:45 / 8760= 00.01:52 hours per calendar hour
9. Cascade then looks at the employee’s Job and Salary record to determine how many working periods there
are for this entitlement year. For example,
10.
11.
12.
13.
The entitlement year can then be split into 2 work periods based on this data. The first runs from the start of
the entitlement year (01/01/2010) to 22/06/2010, the second from 23/06/2010 to the end of the
entitlement year (31/12/2010).
We can then calculate the full time entitlement for each period by multiplying the number of hours in each
period by the entitlement a person is due per calendar hour.
The pro-rated entitlement for each period can then be calculated by multiplying the full time entitlement
for each period by the FTE for each period.
The total pro-rated entitlement for the entitlement year is a sum of all of the values for all of the work
periods.
Cascade then calculates what the overall deduction should be, by subtracting the total pro-rated entitlement
from the full time entitlement.
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A summary of this calculation is below
Period Start Date
#
1
2
01/01/2010
23/06/2010
End Date
22/06/2010
31/12/2010
Number of days Number of
Full Time
FTE for this period
in period
hours in Period Entitlement in hours
for period
173
192
4152
4608
Total Full Time
129:45
1
144:00
0.746666666666667
273:45 Total Entitlement
Total Deduction
Pro-rated
entitlement for
period
129:45
107:31
237:16
36:28
4.3 How does Cascade adjust an employee’s Bank Holiday Entitlement?
Cascade adjusts a part time employee’s entitlement to Bank Holiday leave, by taking account of both the employee’s
FTE and her working pattern. Cascade can apply a deduction or an addition to an employee’s entitlement,
depending on whether the employee’s working pattern will give her more or less holiday than the correct pro-rated
amount.
Bank Holiday Procedure
1. Cascade examines the Job and Salary records that cover the entitlement year.
2. Cascade counts the number of Bank Holidays in each period, by checking the dates in the Bank Holiday
Administration area for the location specified on the employee’s Job and Salary page.
3. Cascade calculates the correct pro-rated entitlement to Bank Holiday for each period for the FTE value on the
record.
4. Cascade counts the amount of Bank Holiday the employee will receive based on her working pattern. In the
example above, as of 23/06/2010 this employee will work the following pattern.
Cascade also takes account of the duration of each of the days that compose this pattern, in both hours and
minutes and fractions of a day. For example,
Over the course of the year, this bank holiday profile maps as follows.
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5. Cascade applies an adjustment to the overall holiday entitlement to account for the difference.
A summary of this calculation is as follows;
Calculation in Days
Calculation in Hours
Number of Number of
Number of
Working
Bank
Bank Holiday
Pro-rated
Bank Holiday
Period # Start Date End Date
Calendar
Holidays in hours
FTE for this period
Entitlement
hours worked Adjustment
1 01/01/2010 22/06/2010 Calendar
5
37:30
1
37:30
37:30
0:00
2 23/06/2010 31/12/2010 T5.5WTF
3
22:30 0.746666666666667
16:48
5:30
11:18
Total Bank Holiday Hours
60:00
Total Adjustment
+11:18
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5. SAMPLE CALCULATION FOR EMPLOYEE SHOWN ABOVE
Pro Rata Holiday Adjustment in Days
Calculation In Words
Days in Period / Days in the year = Entitlement per day * FT Holiday Entitlement for Year + LOS = Days Entitlement
for FT for the period * FTE = Entitlement for period for part time employee
Perform the calculation above for each separate period
At the end of the calculation add the entitlements due together and then round this figure up to the next nearest
minimum unit.
Then to get to the part time adjustment figure Cascade will make, take the figure you have from the FT entitlement +
LOS = This is the adjustment amount
Calculation In Figures
173/365 = 0.4739726027397260 * (30 + 6.5) = 17.3 days * FTE 1.0000000000000000 = 17.30 days
192/365 = 0.5260273972602740 * (30 + 6.5) = 19.2 days * FTE 0.7466666666666667 = 14.34 days
17.30 days + 14.34 days = 31.64 days
Rounded Entitlement = 31.75
(30 + 6.5) – 31.75 = -4.75 days negative part time adjustment
Pro Rata Holiday Adjustment in Hours and Minutes
In Words
Days in Period / Days in the year = Entitlement per day * FT Holiday Entitlement for Year + LOS = Days Entitlement
for FT for the period (convert this to decimal time for calculation)* FTE = Entitlement for period for part time
employee (leave time as decimal)
Perform the calculation above for each separate period
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At the end of the calculation add the entitlements due together (as decimal time)
Then to get to the part time adjustment figure Cascade will make, take the decimal time figure you have from the FT
entitlement + LOS decimal time = This is the adjustment amount in decimal time
You can now convert this to Hours and Minutes this will give you the correct adjustment to make in Hours and
Minutes
Calculation In Figures
173/365 = 0.4739726027397260 * (225 + 48.75) = 129.75 hours * FTE 1.0000000000000000 = 129.75 hours
192/365 = 0.5260273972602740 * (225 + 48.75) = 144.00 hours * FTE 0.7466666666666667 = 107.52 hours
129.75 hours + 107.52 hours = 237.37 days
Do not round this figure
(225 + 48.75) – 237.27 = -36.48 hours
Converted to Normal Time = 36 Hours 28 Minutes 47 Seconds
Cascade naturally rounds this to 36 Hours 29 Minutes
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Bank Holiday Adjustment in Days
Calculation In Words
Bank Holidays that fall in Period * FTE = Bank Holiday due for the period for PT employee – Bank Holidays that have
been worked in the period
Perform the calculation above for each separate period
At the end of the calculation add the entitlements due together and then round this figure up to the next nearest
minimum unit used by the company
This is the adjustment that Cascade is going to make for Bank Holiday
Calculation In Figures
5 days * FTE 1.0000000000000000 = 5.0 days - 5 days = 0.00 days 3 days * FTE 0.7466666666666667 = 2.24 days – 1
day = 1.24 days
0.00 days + 1.24 days = 1.24 days
Rounded Entitlement = 1.25
Cascade will make a positive adjustment for 1.25 days
Bank Holiday Adjustment in Hours and Minutes
Calculation In Words
Bank Holidays that fall in Period (use either standard working day or J&S field Employee working day to calculate the
hours) convert this figure to decimal time * FTE = Bank Holiday due for the period for PT employee in decimal time –
Bank Holidays that have been worked in the period again convert this to decimal time.
Perform the calculation above for each separate period
At the end of the calculation add the entitlements due together (as decimal time)
You can now convert this to Hours and Minutes this will give you the correct adjustment to make in Hours and
Minutes
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Calculation In Figures
37.5 hours * FTE 1.0000000000000000 = 37.5 hours – 37.5 hours = 00.00 hours
22.5 hours * FTE 0.7466666666666667 = 16.80 hours – 5.5 hours (Tue) = 11.30 hours
Do not round this figure
00.00 + 11.30 = 11.30 Hours
Converted to Normal Time = 11 Hours 18 Minutes 02 Seconds
Cascade naturally rounds this to 11 Hours 18 Minutes
Cascade will therefore make a positive adjustment for 11 hours 18 minutes
Something to bear in mind before using the Normal Working Day field for an Employee in calculating Bank Holiday is
the general rule of thumb below
Bank Holiday Calculation
Rule of Thumb!
If hours in the normal hours field in the post, when divided by 5 do not equal the same as the Standard Working Day
in System Properties. Adjust the Employee Working Day field to that value.
Ie Standard working day set to 7hrs, hours in post set to 40hrs. 8hrs would be entered in the Employee Working Day
field
IMPORTANT – Ignore the hours the employee works they are irrelevant at this point. Remember this is the company
post standard day not the employees’
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