Worker Holidays in Arez Operate

Overview

In Arez Operate, worker holidays are managed against the worker’s assigned employment or holiday contract type. This ensures holiday balances, requests and payments are handled consistently and in line with how each worker is engaged.

The holiday setup is linked to the Recruitment Board/worker contract setup. When a worker is moved into employment and their contract type is assigned, Arez Operate automatically applies the correct holiday rule to that worker’s record. From that point onward, the Holidays section in the worker profile reflects the correct method of calculation, balance tracking and payment behaviour.

This means the operations, payroll and HR teams do not need to calculate holiday entitlement manually for each worker. Instead, Arez uses the contract type to drive the correct holiday logic in the background, while still giving managers a clear view of balances, requests, accruals, and paid time off.

Where to manage worker holidays

You can manage holidays from:

Workers → Open Worker Record → Holidays tab

Within this section, managers can:

• View the worker’s holiday contract type

• See the current holiday balance and usage

• review accruals where relevant

• Submit or approve holiday requests

• understand how the holiday will be paid

• Review the holiday year position at a glance

Holiday contract types in Arez Operate

Arez Operate supports three holiday contract types for workers.

1) Zero-Hour Contract

This is used when a worker is engaged on a zero-hours basis, and holiday pay is paid pro rata to hours worked.

How it works

• The worker can work as many hours as available or assigned.

• Holiday is calculated at 12.07% of the eligible worked hours.

• Instead of being taken from a traditional holiday pot, the holiday value is typically paid separately.

• In payroll, this must appear as a separate line item rather than being absorbed into the standard pay rate.

What this means in practice

• The worker does not receive a fixed annual bank of 28 days.

• Their holiday entitlement builds in line with the hours they work.

• Holiday pay is still due, but it is calculated proportionately.

• The payroll output should clearly distinguish:

  • normal working pay

  • holiday pay

What managers will see in Arez

• contract type shown as Zero-Hour Contract

• hours worked in the holiday year

• 12.07% accrual value

• holiday pay position

• Any separate holiday payment entries where applicable

Add screenshot here: Zero Hour Contract example in the Holidays tab.

2) Accrued Holidays

This is used where a worker accrues holiday as they work, and then takes paid time off from that accrued balance.

How it works

• As the worker completes shifts and hours, holiday entitlement is accrued.

• The accrued holiday can then be used when the worker takes time off.

• Holiday may be taken in practical payroll chunks, such as:

  • 10-hour day

  • 12-hour day

• There is no carry forward into the next holiday year under this rule.

What this means in practice

• The worker builds up holiday over time.

• If they have not accrued enough holiday, managers can see this before approving leave.

• The balance resets at the end of the relevant holiday year, subject to company policy.

• This model is useful for shift-based workers whose holiday value needs to reflect actual worked time and normal shift length.

What managers will see in Arez

• contract type shown as Accrued Holidays

• accrued hours or days to date

• available balance to take

• requests already approved or scheduled

• remaining amount before year-end

• clear visibility that the unused balance does not carry forward

Add screenshot here: Accrued Holidays example showing accrual summary and available balance.

3) Standard PAYE (28 Days)

This is used for workers who are entitled to a standard annual holiday allowance, regardless of the exact number of hours worked.

How it works

• The worker starts with a default entitlement of 28 days' paid holiday for the holiday year.

• This entitlement is not directly tied to hours worked, unlike an accrued or zero-hours model.

• The worker can take a holiday from this balance even if they have only worked a short period, depending on company policy and how the contract has been assigned.

What this means in practice

• The holiday entitlement is treated as a standard annual allowance.

• Managers can approve leave requests against the worker’s remaining balance.

• The system shows:

  • total entitlement

  • days taken

  • scheduled leave

  • remaining days

What managers will see in Arez

• contract type shown as Standard PAYE (28 Days)

• annual entitlement loaded automatically

• holiday balance displayed in days and, where useful, hours

• clear request history and current remaining balance

Add screenshot here: Standard PAYE worker holiday balance example.

How Arez Operate applies the correct holiday rule

The holiday rule is not selected manually every time leave is requested. Instead, it is set once through the worker’s contract setup.

Process

1. The worker is created or moved through the Recruitment Board.

2. A worker contract type is assigned.

3. That contract type determines the holiday method.

4. Arez Operate automatically applies the correct holiday calculation model.

5. The Holidays tab then reflects that rule in the worker record.

This reduces admin errors and ensures the payroll, operations, and HR teams are all working from the same contract logic.

Add screenshot here: Worker contract type selection or contract panel.

What managers can do in the Holidays tab

Depending on permissions, managers can use the Holidays tab to:

View balance

See the workers’:

• holiday contract type

• entitlement

• accrued amount

• taken leave

• scheduled leave

• remaining balance

Review requests

Track all holiday requests in one place, including:

• requested dates

• reason

• who approved or rejected

• request status

Add requests

Create a holiday request on behalf of a worker where needed.

Check the year position

Quickly understand whether the worker:

• still has a holiday available

• has used most of their balance

• is on track to lose unused accrued leave at year-end, where no carry forward applies

Add screenshot here: Holiday request table and Add Request button.

Recommended UX principles in the module

The improved Worker Holidays module is designed to make holiday management easier for operations, HR and payroll teams.

1. Contract type should always be visible

The worker’s holiday rule should be displayed clearly at the top of the page so that managers immediately understand how entitlement is calculated.

2. Balance should be easy to read

Key figures should be shown in summary cards, such as:

• total entitlement

• taken

• scheduled

• remaining

3. Accrual details should appear only where relevant

For Zero Hour and Accrued Holiday workers, accrual data should be visible.
For Standard PAYE workers, the page should focus more on the annual balance and leave usage.

4. Requests should sit near the balance

Managers often want to check the available balance before approving leave, so the holiday request list should be close to the main holiday summary.

5. Payroll behaviour should be clear

For Zero Hour workers in particular, the system should make it clear that holiday pay is treated as a separate payroll line item.

Important notes for administrators

Before using the Holidays module at scale, ensure:

• The correct contract type has been assigned to each worker

• The holiday year has been configured correctly in system settings

• Payroll understands how each holiday type is paid

• managers know which holiday models allow accrual and which use a fixed balance

• year-end rules are understood, especially for accrued holiday with no carry forward
  

Example use cases

Example 1: Zero-Hour worker

A worker completes a variable number of shifts over several weeks. Arez calculates holiday at 12.07% of worked hours, and payroll includes this as a separate holiday pay line.

Example 2: Accrued holiday worker

A worker builds up holiday through hours worked. They later requested two 12-hour days off. Arez checks the accrued balance and deducts the equivalent amount once approved.

Example 3: Standard PAYE worker

A full-time PAYE worker is assigned a 28-day holiday entitlement for the year. Their approved leave is deducted from that annual balance regardless of how many hours they worked that week.

Best practice

To keep holiday records accurate:

• Assign the correct contract type during onboarding

• Review holiday balances regularly

• approve requests against live balances

• Make sure payroll line items match the worker’s holiday model

• Avoid changing contract type mid-year unless there is a clear operational or compliance reason

Summary

Arez Operate simplifies worker holiday management by linking holiday behaviour directly to the worker’s contract type. Once assigned through recruitment or contract setup, the system automatically applies the correct rule for:

• Zero Hour Contract — 12.07% pro rata, paid as a separate line item

• Accrued Holidays — built up through worked hours and taken in shift-based chunks, with no carry forward

• Standard PAYE (28 Days) — fixed annual holiday entitlement, not directly based on hours worked

This gives your HR, payroll and operations teams a single, clear way to manage holiday fairly and consistently across different worker types.