Cascade launches new functionality to tackle average holiday pay

news article

Jun 22 2016

Cascade HR – one of the country’s leading suppliers of fully-integrated HR and payroll software – has launched new functionality to ensure compliance with evolving average holiday pay legislation.

The development has been on the vendor’s technology roadmap for some time, with the release now publicly available to new and existing customers following 3 months of extensive testing.

Cascade’s existing software feature,  including annual leave entitlement profiles, self-service holiday requests and annual leave analysis reporting, are now further enhanced by a number of tools designed specifically to address the average holiday pay undertaking.

Holiday pay image

For example, clients can tailor how they record and calculate average holiday pay, according to just the 20 statutory days under the Working Time Directive, or inclusive of additional days. It is even possible to make the calculations on the basis of hours worked instead of days and, if employees’ working hours change, the schema can be updated accordingly.

The much-debated reference period can also be adjusted to suit the policy chosen by each particular organisation. Different rules can be applied to different occupational pay schemes, and there is the option to assign rules globally or to a defined group.

Further functionality lies in the payroll integration. Holiday records can be integrated (or not) with just the click of a tick box, pay elements and cut off dates can be selected, and dynamic reference periods can be set. Much like other areas of integration such as SSP/SMP/SPP, anything added to any employee’s record can be included in the payroll calculations. Daily rates, a week’s normal pay and average holiday can be determined with ease; breakdowns are clearly visible on employees’ payslips, and the software will even show warnings if someone runs beyond the organisation’s chosen average holiday pay period entitlement.

Commenting on this latest development, Cascade’s payroll product manager Polly Price said: “This has been a very client-centric development. We revealed a prototype of the functionality at one of our networking groups last Autumn, following customer input during the development phase. We received positive feedback, with clients relieved that they’d be in safe hands when faced with another uncertain and potentially complex task to undertake. However, we continued to make some finer tweaks as a result of our beta testing, until we were completely happy that the finished functionality would be simple, slick and fail-safe.”

The highly configurable release is incredibly well timed given recent news that, after almost four years of debate, the Employment Appeal Tribunal confirmed that commission will need to be included in holiday pay calculations moving forward. Whilst the decision has been met with a mixed response from industry, the focus now should be compliance.

Polly Continued: “Regardless of organisations’ thoughts about the ruling, we must remember that employees should not be deterred from taking time out for the rest and recuperation they need. The Cascade functionality is here to ensure clients’ compliance with this legislative change, without creating an additional ‘headache’ for already-stretched HR and payroll teams throughout the country.”


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Cascade HR is a well-established, award-winning provider of fully-integrated HR and payroll software. The company is renowned as much for its quality of project management and ongoing customer service levels, as it is its dynamic technology. Over 


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