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Understanding entitlements and calculations can often be a minefield for HR teams. Here, we shed some light on the essentials and provide clear answers to get the easiest and most accurate results for your team!
Did you know that full-time employees are entitled to at least 5.6 weeks of paid holiday each year? That’s a solid 28 days off to relax, recharge, or explore new adventures! Whether or not this includes bank holidays depends on your company’s policy, but one thing’s for sure: these days are yours, no matter how many extra hours you put in each week. Let’s delve into the essentials of holiday entitlements so you can make the most of your time off!
The essentials for calculating holiday entitlement
For full-time employees (typically working five days a week), statutory holiday entitlement is calculated by multiplying the number of working days by 5.6. This gives:
- 5 days per week x 5.6 = 28 days of paid holiday per year
This 28-day entitlement includes bank holidays, depending on the company’s policy.
Part-Time Employees
Part-time employees are entitled to the same 5.6 weeks, but adjusted proportionally to their working hours. This means the total days are calculated based on the number of full working days they work each week (based on an 8 hour day).
For example:
- 3 days per week x 5.6 = 16.8 days of paid holiday per year (inclusive of any bank holidays that fall on their normal working days)
- 2 days per week x 5.6 = 11.2 days of paid holiday per year (inclusive of any bank holidays that fall on their normal working days)
Holiday entitlement starts accruing from the first day of employment, including during probation, sick leave and parental leave. Enhanced holiday entitlements, which go beyond statutory requirements, are defined within the employment contract.
For HR calculations, work patterns determine holiday pay rates:
- Fixed Regular Hours: The employee receives their normal weekly wage for each week taken.
- Shift Workers: Calculated based on the average number of hours worked over the previous 52 weeks.
- Irregular Hours: Average pay is based on the past 52 paid weeks, excluding unpaid weeks.
For staff employed less than 52 weeks, only completed weeks are counted. Temporary or part-year contracts also accrue holiday proportionally, meaning an employee working six months would be entitled to half of the yearly statutory amount.
Managing Part-Day Entitlements
Part-time or irregular-hour employees may have part-day entitlements, for example if an employee works 15 hours a week, on average, 15 x 5.6 = 84 hours entitlement. Employers cannot round these down; instead, flexible arrangements—like adjusting start or end times—can help manage these part-days effectively.
Prohibitions on Rolled-Up Holiday Pay
“Rolled-up” holiday pay (where it’s included in the hourly wage) is generally prohibited for regular-hours employees. However, it can be applied to part-year or irregular-hours workers hired before the latest regulatory updates.
Resources for HR and Employee Clarity
HR professionals should encourage employees to consult their contracts or reach out to HR if they need guidance on their entitlements. Additionally, the GOV holiday calculator is a valuable tool for both HR teams and employees, clarifying entitlements according to specific working arrangements.
By ensuring a clear, compliant approach to statutory paid holidays, HR can build trust and support overall employee satisfaction.
If you’re unsure about your entitlement or need assistance navigating the complexities of holiday pay calculations, don’t hesitate to contact us. Our expert team is here to help you understand your rights and ensure you receive the correct pay you deserve.
