Once you have entered the start date and clicked save, the system will ask you if you would like to pro-rata the employees holiday allowance.
When you get to the screen above, you may notice that the Annual Holiday allowance has increased by 8 days (if you are based in the UK), this is because in order for the pro-rata calculations to be correct, we must include the 8 bank holidays.
If you give your staff the statutory entitlement of 28 days, and they do not work bank holidays, then set their allowance in their profile to 20 days, and set bank holidays to not deduct in your company settings. When you then pro-rata their allowance the system will base it's calculations on 28 days.
Once you have agreed the pro-rata calculations you will see that an adjustment has been applied to the staff members entitlement for this year.
If you had 28 days allowance per year inclusive of your 8 days Bank Holidays, the calculation would be:
Allowance (28) / Number of days in year (365) = Your daily accrued allowance (0.0767)
Daily accrued allowance (0.0767) x Number of days between start date and end of holiday year (245) = 18.8
18.8 - number of bank holidays you will work (5) = 13.8
13.8 is the amount of holiday you are entitled to based on this calculation.