How to Configure Holiday Policies, Subtypes, and Pro‑Rata Entitlements

Summary This article explains how to handle different base holiday allowances and pro‑rata entitlements: when to create separate absence policies or absence types, how subtypes are used, and when to use pro‑rata settings on a user’s profile.

Key recommendations

• Create a separate absence policy for each distinct base annual allowance (for example, 25 days, 27 days, 30 days).
• Create separate policies for part‑time groups whose entitlement is different from full‑time allowances.
• Add subtypes to each policy as needed (each policy needs its own subtypes).
• For employees who started partway through the holiday year, use pro‑rata settings on the person profile / time off section rather than creating a new policy.
• You cannot add subtypes to the main holiday type. To have subtypes, create a new holiday absence type (or separate absence type) and add subtypes to that type.
• For holiday-specific variations, set up a distinct absence type for each different holiday type rather than relying on subtypes under the main holiday type.

When to set up a subtype vs. a separate policy or absence type

• Use a separate policy when the base allowance itself differs (different full‑time entitlements).
• Use a separate policy for part‑time workers whose annual accrual differs from full‑time staff. Part‑time workers should have their own policy because they will earn less holiday overall.
• Use pro‑rata on an individual’s profile/time off when the employee joined partway through the holiday year (pro‑rating for partial-year service).
• If you need subtypes for categorization within a policy, add them to that specific policy. If the main holiday absence type does not allow subtypes, create a new absence type (a holiday absence type) and then add subtypes to it.

Step‑by‑step guidance

1. Identify distinct full‑time base allowances in your organisation (for example: 25, 27, 30 days).
2. For each distinct base allowance, create an absence policy reflecting that allowance.
3. Identify part‑time groups whose total annual entitlement differs from full‑time; create separate policies for those groups.
4. For each policy that requires sub‑categorization, add subtypes to that policy (each policy needs its own subtypes).
5. If the platform prevents adding subtypes to an existing main holiday type:
   • Create a new holiday absence type (or separate absence type) that is eligible to have subtypes.
   • Add the required subtypes to that new absence type.
6. For employees who started partway through the holiday year, open the employee’s person profile and use the time off / pro‑rata settings to adjust their entitlement. Do not create a separate policy solely for pro‑rata adjustments in this case.

Troubleshooting tips

• If a user’s displayed allowance is incorrect after you created a policy, confirm the correct policy and absence type are linked to the user.
• If you cannot add subtypes under the existing holiday type, create a new holiday absence type and add subtypes there.
• Use the person profile pro‑rata settings when an employee’s entitlement is reduced because they started mid‑year, rather than creating a new policy.

Conclusion Set up separate absence policies (and associated absence types when necessary) for each distinct base holiday allowance and for part‑time groups with different annual entitlements. Use subtypes within each policy for additional categorization, and use pro‑rata on individual profiles for people who start partway through the holiday year.