Holiday accrual based on hours worked in TimeTally

Holiday Accrual Based on Hours Worked

Automatically calculate and track holiday entitlement for workers without fixed hours. TimeTally applies the 12.07% accrual rate to every approved timesheet — balances update in real time.

Under UK Working Time Regulations, workers without fixed hours accrue 5.6 weeks' holiday per year — equivalent to 12.07% of hours worked. For a worker doing 20 hours one week and 30 the next, each week's accrual is different. TimeTally calculates it automatically as timesheets are approved. Works alongside zero-hours contract management, leave accrual software, and variable-hours holiday entitlement.

Every leave scenario, handled

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12.07% accrual. Calculated automatically. No spreadsheets.

TimeTally applies the correct accrual rate to every approved timesheet. Holiday balances update in real time for every worker on variable hours.

12.07% applied to every approved timesheet

When a timesheet is approved, holiday accrues automatically at 12.07% of hours worked. No manual calculation needed.

Works for variable and irregular hours

Each week's accrual reflects actual hours worked, not a fixed assumption. Fair for workers whose hours change week to week.

Real-time balance for workers

Employees see their current accrued holiday balance in the TimeTally app. No waiting for HR to calculate it manually.

Used alongside fixed-entitlement staff

Manage hours-based accrual for zero-hours workers and fixed annual entitlement for permanent staff in the same system.

Holiday pay data for payroll

Export hours data for 52-week average holiday pay calculations under the Employment Rights Act 1996 (as amended).

Configurable accrual rate

The default 12.07% can be adjusted if your contractual entitlement is higher than the statutory minimum.

All workers, one holiday calendar

Variable-hours and fixed-hours workers on the same calendar, each with their own accrual method. Approved timesheets trigger accrual automatically — no separate tracking needed.

Variable-hours and fixed-hours staff on one calendar

Complete view of the whole team's leave — no separate systems

Each worker's balance based on their own accrual method

Hours-based for variable-hours workers, fixed entitlement for permanent staff

Approved timesheets trigger accrual automatically

No manual step — timesheet approval updates the balance immediately

Team holiday calendar showing hours-based accrual in TimeTally

Every leave type. One system.

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Annual Leave

Accrual-based for variable-hours workers or fixed entitlement for permanent staff — both in the same account.

TOIL

Overtime banked as time off in lieu. Workers accrue TOIL from extra hours and request it as leave.

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Sick Leave

Accrual continues during sickness under Working Time Regulations. Sick leave is tracked separately.

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Parental Leave

Holiday accrual continues during maternity, paternity, and shared parental leave.

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Compassionate Leave

Custom leave types for compassionate, bereavement, and other special circumstances.

Custom Leave

Any leave type you need — configured with its own rules, entitlement, and approval flow.

Simple, Transparent Pricing

One price for all employee types. No surprises.

£2/employee/month

Billed monthly. Cancel anytime.

Hours-based accrual at 12.07% (or custom rate)
Balance updates on timesheet approval
Variable and fixed-hours staff in one account
Worker self-service — see their own balance
Payroll exports — CSV, Xero, QuickBooks

Frequently Asked Questions

What is the 12.07% holiday accrual method?

5.6 statutory weeks ÷ 46.4 working weeks = 12.07%. This is the standard approach for workers without fixed hours under UK Working Time Regulations. Every approved week of work accrues holiday at 12.07% of hours worked.

When does holiday accrue in TimeTally?

When a timesheet is approved, hours worked × accrual rate is added to the worker's balance automatically. Balances update in real time — no manual calculation required.

Can I set a different accrual rate?

Yes. If your contractual entitlement exceeds the statutory minimum, you can configure a higher accrual rate. The 12.07% default can be adjusted per worker or per contract type.

Does holiday accrue during sick leave?

Yes. Workers continue to accrue statutory holiday during sick leave under the Working Time Regulations. TimeTally records sick leave separately so the accrual is maintained correctly.

Does holiday accrue during maternity leave?

Yes. Full statutory and contractual holiday accrues during maternity leave. Workers returning from maternity leave are entitled to any holiday that built up while they were away.

How is holiday pay calculated for variable-hours workers?

Holiday pay is calculated using a 52-week average of pay actually received, under the Employment Rights Act 1996 as amended by the Employment Rights (Amendment) (EU Exit) Regulations 2019. TimeTally's timesheet export gives payroll the weekly hours data needed to calculate this average accurately.

What happens to accrued holiday when an employee leaves?

Any accrued but untaken holiday must be paid out as part of the final pay. TimeTally shows the outstanding balance at the point of leaving so it can be included in the final payslip.

Automate holiday accrual for every worker type.

See everything TimeTally offers. 12.07% accrual calculated automatically, balances updated on approval, and payroll exports included.

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