If employees have a holiday entitlement in DAYS, then the system will always look at their contracted days to calculate holidays. For example, if FTE is 28 days and an employee works 5 days, 40 hours and the FTE hours is 40 that employee will receive the full-time holiday entitlement of 28 days.
If an employee works 5 days but 20 hours and the FTE is also 40 then that employee will also receive the full-time entitlement of 28 days because the contract days is the same, the entitlement is in days (28 days) and so the system looks at the contracted days not hours. If a user wanted the system to look at their contracted hours to calculate holidays, then it is advised that the employee has a holiday entitlement in hours.
📌Note: For a holiday to accrue correctly, the employee will need an FTE that is not 0.