This has the effect of applying the full monthly salary (1/12th of annual) for a last working day leaver or a starter where the 1st or 2nd calendar days are on a weekend or public holiday.
Example: Leaver 31/10/2024 Monthly salary £2500 but pro-ration set to 260 working days so EP pays 23 x £115.3846 per day (£30000 pa x 1/260) which is £2653.85 instead of £2500.
A remaining employee on the same £30000 per annum only gets the £2500 so why should the leaver employee receive more? Possibly unfair payment practise.
A flag like this is programmed into Payrite to avoid these unfair salary payment situations.