You can configure time off policies to allow UK employees to request holiday payouts before starting their holidays, also called advance pay. For information about government regulations around advance pay, see the following link:
https://www.gov.uk/guidance/paying-an-employee-in-advance-for-holidays-or-from-holiday-pay-scheme
Overview
Employees can request advance pay when they request holidays. They must make the request early enough to meet the Advance Pay request threshold in the time off policy. When they create a time away from work request in Work > Time Away List, they can select the Advance Pay checkbox. Employees select the Advance Pay checkbox to indicate that they would like advance pay for this time away request. Dayforce automatically calculates the maximum payout employees can receive by multiplying their pay rate by the number of hours they have requested. It shows in the Pay Amount field:
Note: Employees can’t request more than their maximum amount.
The payout occurs as a pay adjustment for each day of vacation. The application automatically determines whether to make advance payouts one or two pay periods ahead, based on the dates of the employee's vacation and the time away from work request. So, if the time away request is made two pay periods before the cutover date for that pay period, the application pays out the amount two pay periods in advance. However, if the request is made in the last week before the vacation begins, the payout is made one pay period before the vacation. Usually advance payouts are made two pay periods in advance. Employees are encouraged to request time away and advance payments at least two pay periods early.
During the employee's holiday, the application claws back the holiday pay that the employee would normally receive, had they not taken an advance payout.
Enable Pay Group Access
Before you can configure advance payouts, you must first configure your pay group to allow employees to receive advance pay. Select the pay group in Pay Set-up > Pay Group, and then, in the Payroll Properties tab, select the Allow Advance Payment Weeks checkbox.
Configure Dayforce for Advance Payouts
Note: For general information about configuring advance pay, See Configure Advance Pay in the Dayforce Implementation Guide.
To configure the application for advance payouts:
- Go to Time Away From Work > Time Off Policy.
- In the left side panel, select the time off policy to modify.
- Go to the Advance Pay section.
- In the Advance Pay request threshold field, enter the number of days before the approval date that employees can request advance pay.
- For example, with 3 in this field, employees cannot make requests later than 3 days before the approval date for the last pay period before their vacation.
- In the Minimum number of consecutive holiday days field, enter the minimum number of consecutive days of time away that employees must request to be eligible for advance holiday payouts.
- For example, with 5 in this field, employees requesting only 4 consecutive days of time away aren’t eligible for advance vacation pay.
- Select the Pay Amount View Only checkbox to prevent employees from requesting partial payouts. They cannot edit the calculated amount of advance pay.
- In the Advance Pay Period drop-down list, specify the number of pay periods that can be paid to employees in advance when they request time away. Select 1, and employees are paid one period in advance. Select 2, and employees are paid up to two pay periods in advance.
- Click Add, and configure the pay codes that will grant advance payout, as needed. See Configure Advance Pay in the Dayforce Implementation Guide.
- Click Save.