Time-off based on hours worked

Now you can define the amount of time off your employees will obtain according to the hours they have worked.

What is Paid Time-Off for hourly workers?

It´s a type of a Time-Off Allowance that calculates Paid Time-Off based on the hours one has worked. Paid Time-Off based on time worked is useful for workers who get their salaries and time off according to the hours worked ( also for 0-hour contract workers in the UK, for example).

💡An hourly worker or hourly employee is an employee paid an hourly wage for their services, as opposed to a fixed salary and thereby fixed time off allowance schedule.

❗Your company needs to have the time tracking app activated and the employee needs to perform the clock-in/clock-out in order for the new allowance type to work.

    How do I set it up?

    • Locate it:
      1. Head to Company 
      2. Select Time-Off
      3. Choose the Policy in which you will add a new Time-Off Allowance
      4. Click on Add time off-allowance
      5. Give your time-off allowance a name

    pto set up first

    • Basic information: Select Type of Allowance ✨Based on time worked✨
      based on time worked
    • Select the Absence types to be included in this allowance
    • Adjust Allowance settings:

    💡 This type of allowance always works in hours only. The hours can be displayed in decimals, 15-minute blocks or 30-minute blocks. 

    pto 2


    • Define the amount of time off your employees are going to get, according to the number of hours worked.  See example below: 1 hr accrued after 40 hours of work.

    Frame 2-2



    Example for the 🇮🇪 Republic of Ireland :  On Factorial you can also specify a percentage of time off based on the total amount of time the employee has worked. For example, when you would like to set up that your people will get 8% of time off of their time worked, simply input 8 under hour accrued and 100 under per every hour worked (see below).


    pto 4

    • Set the Maximum allowance hours. When an employee reaches the amount of hours you have set up, they will stop accruing hours for time off (see below).
    • Set a limit for maximum allowance hours (example: 200) or select unlimited hours (see below).

    pto 5


    • or set the Pro-ratio: With pro-ratio we are subtracting the maximum time off an employee can get that can be set by the admin in this field from the annual working time, which is calculated, taking in account 2080 hours (according to a regular 40-hours per week schedule). 

    💡When enabling Pro-ratio, Factorial will automatically make all the calculations behind the scenes.  What you have to do is - specify the maximum allowance hours by law. Then the system calculates the pro-ratio that is used (when inputing 224 maximum allowance hours in the UK, for example), and the time off will be calculated according to that (see below). 

    pto 6

    ❓ What can be done if an employee reaches Maximum allowance hours, but needs more Time-Off?

    They simply have to request for more through the Time-Off section at their employee portal and they will get it as unpaid time-off