Amending Attendance Settings When Bank Holidays Are Incorrectly Counted as Undertime or Overtime
If bank holidays are showing as undertime or overtime for employees in their timesheets, a mismatch in your Attendance settings is usually the reason.
This article is here to show how each setting works and how to adjust them, so bank holidays are handled correctly.
Two Settings Impact How Bank Holidays Behave in Attendance:
- Potential hours include paid statutory and bank holidays
- Count all payable hours toward the overtime threshold
These settings work together to determine whether employees are expected to work on a bank holiday and whether the bank holiday hours count toward worked hours.
How the Settings Behave:
| Setting | If toggled on... | If toggled off... |
|---|---|---|
| Potential hours include paid statutory and bank holidays (Setting A) | Employees are expected to work or register hours on a bank holiday. | Employees are not expected to work or register hours on a bank holiday. |
| Count all payable hours toward the overtime threshold (Setting B) | Potential/Payable days/hours (may or may not include bank holidays, depending on your setup) are considered before overtime is counted. | Potential/Payable days/hours (may or may not include bank holidays, depending on your setup on A and C) are not considered before overtime is counted. |
💡 Tip: It’s best to confirm with your payroll team whether paid statutory and bank holidays should be included.
Bottom Line...
Most companies choose to keep both settings on or both settings off so everything aligns. Here’s what each configuration produces:
What Each Combination Means:
| Setting Combination | Expected Hours on a Bank Holiday | How Bank Holiday Hours Are Counted | Outcome |
|---|---|---|---|
| A = On + B = On | Employee is expected to work (e.g., 8 hours). | Bank holiday counts as worked hours. | No missing time and no automatic overtime. Only extra registered hours become overtime. |
| A = Off + B = Off | Employee is expected to work 0 hours. | Bank holiday does not count as worked hours. | No undertime or overtime unless extra hours are logged. |
| A = On + B = Off | Employee is expected to work (e.g., 8 hours). | Bank holiday does not count as worked hours. | Undertime, unless work hours are registered. |
| A = Off + B = On | Employee is expected to work 0 hours. | Bank holiday counts as worked hours. | Overtime. |