{"id":1549,"date":"2026-10-14T07:00:00","date_gmt":"2026-10-14T07:00:00","guid":{"rendered":"https:\/\/sense.hr\/blog\/?p=1549"},"modified":"2026-10-08T20:18:50","modified_gmt":"2026-10-08T20:18:50","slug":"sense-hr-7-holiday-entitlement-rules","status":"publish","type":"post","link":"https:\/\/sense.hr\/blog\/sense-hr-7-holiday-entitlement-rules\/","title":{"rendered":"Holiday entitlement when the policy doesn&#8217;t fit a simple formula"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">\u201cOur policy starts with two days, then adds one day, then another two. Can the HR system do that?\u201d<\/p>\n\n\n<p class=\"wp-block-paragraph\">Not every annual leave policy is a straight percentage calculation. People join midway through the holiday year, change working patterns, reach service milestones or carry forward some unused entitlement.<\/p>\n\n\n<p class=\"wp-block-paragraph\">The problem is often not a lack of effort from HR. It is that the rules have more moving parts than a standard spreadsheet or a one-size-fits-all setting can comfortably manage.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Sense HR 7.0 adds richer entitlement settings to Calendar &amp; Planner.<\/p>\n\n\n<h2 class=\"wp-block-heading\">First, choose the type of entitlement period<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Sense HR 7.0 distinguishes two types:<\/p>\n\n\n<ul class=\"wp-block-list\"><li><strong>Yearly:<\/strong> the entitlement resets each year in line with the employee&#8217;s Holiday year.<\/li><li><strong>Ongoing:<\/strong> the balance continues without a yearly reset.<\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\">The organisation can also configure a Holiday year at employee level, beginning with the first day of a chosen month. That matters where a business does not use the same January-to-December year for every employee.<\/p>\n\n\n<p class=\"wp-block-paragraph\">The point is to capture the employer&#8217;s intended policy before deciding how much should be awarded.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Five ways to calculate Yearly entitlement<\/h2>\n\n\n<p class=\"wp-block-paragraph\">For Yearly entitlement, Sense HR 7.0 supports five calculation approaches.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><strong>Fixed:<\/strong> awards the full amount regardless of FTE or how much of the entitlement period the employee works. For example, one day of Birthday Leave for everyone.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><strong>FTE-based:<\/strong> adjusts the entitlement according to the employee&#8217;s full-time equivalent.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro-rata \u2013 daily:<\/strong> calculates using FTE and the days in the entitlement period. This is useful when the policy is sensitive to precise joining or leaving dates.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro-rata \u2013 monthly:<\/strong> uses FTE and complete months in the entitlement period, suitable for policies that operate in whole months.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><strong>Step-based:<\/strong> lets administrators define increments by complete months in a part entitlement period.<\/p>\n\n\n<p class=\"wp-block-paragraph\">These are product calculation options, not a statement that every method will be appropriate for statutory holiday entitlement in every employment situation. HR should check the configured approach against applicable law, contracts and policy.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Example: when entitlement grows in steps<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Consider an internal policy that gives a new employee an incremental award according to the number of complete months in a part entitlement period.<\/p>\n\n\n<p class=\"wp-block-paragraph\">The administrator configures:<\/p>\n\n\n<ul class=\"wp-block-list\"><li>Month one: add 2 days.<\/li><li>Month two: add 1 day.<\/li><li>Month three: add 2 days.<\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\">The running totals are 2, then 3, then 5 days. An employee with three complete months in the relevant part entitlement period receives 5 days upfront under this example policy.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Sense HR&#8217;s Step-based table is designed for those policies that do not follow a tidy daily or monthly pro-rata formula.<\/p>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"1009\" src=\"https:\/\/sense.hr\/blog\/wp-content\/uploads\/2026\/10\/sense-hr-7-step-based-entitlement.webp\" class=\"wp-image-1543\" alt=\"Sense HR Step-based entitlement rule with month increments and totals.\" \/><figcaption class=\"wp-element-caption\">Step-based entitlement can be defined using complete-month increments and totals.<\/figcaption><\/figure>\n\n\n<h2 class=\"wp-block-heading\">Carryover: a balance that follows your rules<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Unused Yearly entitlement does not always have the same treatment in every organisation.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Sense HR 7.0 lets administrators turn Carryover on or off and set maximum carryover amounts separately in Days and Hours. Leaving the maximum blank allows unlimited carryover.<\/p>\n\n\n<p class=\"wp-block-paragraph\">That is a product setting, not legal advice. Employers still need to check whether their carryover policy and practices comply with the relevant employment rules and individual circumstances.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Length of service awards<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Some employers increase contractual leave as employees stay longer.<\/p>\n\n\n<p class=\"wp-block-paragraph\">In Sense HR 7.0, Length of service awards are cumulative. For example, a policy might start at 25 days, then adding 1 day at 12 months, another 1 day at 60 months and 2 days at 120 months. The resulting totals are 26, 27 and 29 days.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Administrators can choose whether an extra award lands at rollover or on the anniversary of the employee&#8217;s Employment start date. A Max entitlement can place a ceiling on the total.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Don&#8217;t forget the holiday year and Working hours<\/h2>\n\n\n<p class=\"wp-block-paragraph\">Before configuring rules, make sure the employee&#8217;s Holiday year and Working hours are correct. Sense HR also has a <a href=\"https:\/\/sense.hr\/blog\/sense-hr-7-dashboards-standard-working-day\/\">Standard working day (Hours) fallback<\/a> when scheduled Working hours are not available or cannot be used for a calculation.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Incorrect settings can make a perfectly sensible policy appear to produce surprising results. Test typical full-year employees, joiners, leavers and changes in working pattern before rolling out a complex policy.<\/p>\n\n\n<p class=\"wp-block-paragraph\">For the wider UK entitlement calculation context, Sense HR already has a separate <a href=\"https:\/\/sense.hr\/blog\/a-general-theory-of-pro-rata-and-part-time-holiday-entitlement\/\">pro-rata and part-time holiday entitlement article<\/a> and a <a href=\"https:\/\/sense.hr\/guides\/calculating-holiday-entitlement\/\">holiday entitlement guide<\/a>. Read those for the statutory detail behind the settings described here.<\/p>\n\n\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n<h3 class=\"wp-block-heading\">Does Sense HR 7.0 offer just one pro-rata method?<\/h3>\n\n\n<p class=\"wp-block-paragraph\">No. The Yearly calculation options include FTE-based, Pro-rata \u2013 daily and Pro-rata \u2013 monthly, alongside Fixed and Step-based.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Can entitlement increase after service milestones?<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Yes. Length of service awards can be cumulative, with configurable timing and a maximum entitlement.<\/p>\n\n\n<h3 class=\"wp-block-heading\">Can a policy carry forward days and hours?<\/h3>\n\n\n<p class=\"wp-block-paragraph\">Yes. Carryover maximums can be configured separately for Days and Hours.<\/p>\n\n\n<h2 class=\"wp-block-heading\">The policy comes first. The calculation should follow.<\/h2>\n\n\n<p class=\"wp-block-paragraph\">An HR system is most useful when it records the entitlement policy you intend to apply, without requiring a separate set of workarounds every time somebody joins in September or reaches a long-service milestone.<\/p>\n\n\n<p class=\"wp-block-paragraph\">Explore <a href=\"https:\/\/sense.hr\/holidays-events.html\">Sense HR Holiday &amp; Leave Management<\/a> and request a demonstration using a policy from your own handbook.<\/p>\n\n\n<p class=\"wp-block-paragraph\"><em>This guide is part of our Sense HR 7.0 release series. <a href=\"https:\/\/sense.hr\/blog\/sense-hr-7-0-whats-new\/\">See everything that&#8217;s new in Sense HR 7.0<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>See how Sense HR 7.0 handles fixed, FTE-based, daily and monthly pro-rata, step-based holiday entitlement, carryover and length-of-service awards.<\/p>\n","protected":false},"author":14,"featured_media":1543,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-software"],"contentshake_article_id":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Holiday Entitlement Rules in Sense HR 7.0<\/title>\n<meta name=\"description\" content=\"See how Sense HR 7.0 handles fixed, FTE-based, daily and monthly pro-rata, step-based holiday entitlement, carryover and length-of-service awards.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sense.hr\/blog\/sense-hr-7-holiday-entitlement-rules\/\" \/>\n<meta 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