What Leave Settings Should I Use For A Fixed-Term Employee?

Fixed-term employees can use either normal annual holidays or pay-as-you-go holiday pay, depending on the agreement and whether the fixed term qualifies.

• For a fixed term of less than 12 months where the agreement clearly provides 8% pay-as-you-go holiday pay, turn on Pay annual holidays as you go.
• If the fixed term is likely to continue for 12 months or more, or the employee works continuously, use the normal annual holidays model.
• If a fixed-term employee moves from pay-as-you-go to ongoing employment, turn pay-as-you-go off before the next pay and review opening balances, anniversary dates, and historic earnings.

If pay-as-you-go was used incorrectly, do not try to fix the whole history by changing only the checkbox. Review the payroll history and add manual adjustments or remediation entries as required.