Prorate allowance for new starters or leavers
When staff start or leave your organisation mid-year, their allowances should be prorated based on the proportion of year worked.
Leave Dates will prompt you to perform this proration when setting an employee start or end date in their profile. To prorate the allowance, either click on the warning message or navigate to the ALLOWANCES tab and select the leave year impacted.
A slide-over will appear that provides detail about the portion of the year worked, along with a calculation of the proration.
By default, proration is applied by rounding up to the nearest half day, but the following strategies can also be used:
- Do not prorate any allowances
- UK government guidelines
- Round to the nearest day
- Round to the nearest half day
- Round to 1 decimal place
- Round up to the nearest day
- Round up to the nearest half day
- Round up to 1 decimal place
- Round down to the nearest day
- Round down to the nearest half-day
- Round down to 1 decimal place
A suggestion for the prorated allowance, based on the selected method of calculation, is shown for each policy in each allowance. You can choose to overwrite the suggestion by changing the value, or choose to not prorate specific policies.
When the proration has been applied, press Save.
The new prorated allowance is now shown in the Allowance tab of the employee profile.
To remove the proration and return the allowance to the original value, press the red cancel button on top of the allowance. If there are multiple allowances, it is necessary to remove proration against each allowance in this way. It is also possible to recalculate the proration and then apply a 'Do not prorate' strategy for all allowances.
To recalculate the prorated allowance, click the recalculate button as shown above.