Holiday pay

[sellickbhoy]

Good afternoon helpful people.....

quick word of advise from those in the know

I had a casual employee working for me.....part time, hours varied, never set/regular

he worked for me for about 3-4 months.

we parted company a couple of months ago.

I received an email from him this morning asking about holiday pay entitlement

Can anyone advise what he is entitled to regards holiday payment?

 

[MikeJ]

Were you paying his NIC and income tax, or paying him gross?

 

[sellickbhoy]

he generally didn't work enough hours to have to make NIC and PAYE contributions, but when it was requried, I did pay these

He was an employee and received a payslip etc

my issue is, he worked varying hours, sometimes only a few 8-10, sometimes quite a lot 16-22, sometimes he worked 1 day out of the week, sometimes 5? - so what would be a "pro rata" amount?

 

[butterfm]

If he was an employee of yours then I'm pretty sure he will be entitled to holiday pay, even if the hrs were variable.

The casual or irregular working patterns of this page tells yiou how to calculate it.

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_10034642

Matt

 

[MikeJ]

If he was an employee, he'd have been entitled to 28 days (I think) holiday, pro-rata across the year, which includes statutory holidays.

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_10034642

Casual or irregular working patterns

If you work casually or irregular hours it may well be easiest to calculate the holiday entitlement that accrues (accumulates) as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of the hours you worked. The 12.07 per cent figure is:
5.6 weeks' holiday, divided by 46.4 weeks (being 52 weeks - 5.6 weeks) multiplied by 100 = 12.07 per cent
The 5.6 weeks have to be excluded from the calculation as you would not be present during the 5.6 weeks in order to accrue annual leave. For example, if you had worked 10 hours, you would be entitled to 72.6 minutes' paid holiday:
12.07 per cent x 10 hours = 1.21 hours = 72.6 minutes
The holiday entitlement is just over seven minutes for each hour worked.

 

[sellickbhoy]

If he was an employee of yours then I'm pretty sure he will be entitled to holiday pay, even if the hrs were variable.

The casual or irregular working patterns of this page tells yiou how to calculate it.

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_10034642

Matt

thanks matt

no disputing he is entitled to it. But I used that business link guide and it's a bit brutal - i.e. it calculates it based on a full year (but i've tweaked that) and it asks for number of hours per week - thats where it's a bit dodgy, as the hours varied wildly.

I think i'll just total them up and divide by the number of weeks worked and pay it based on that.

 

[sellickbhoy]

The holiday entitlement is just over seven minutes for each hour worked.

that makes it easy - i missed that bit on the site.

though I would say he spent about that long each and every hour scratching his arse and looking like a plank. So maybe I should say he's already had his holiday pay

THANKS!!

 

[Employment Law Clinic]

Good afternoon helpful people.....

quick word of advise from those in the know

I had a casual employee working for me.....part time, hours varied, never set/regular

he worked for me for about 3-4 months.

we parted company a couple of months ago.

I received an email from him this morning asking about holiday pay entitlement

Can anyone advise what he is entitled to regards holiday payment?

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_10034642

Casual or irregular working patterns

If you work casually or irregular hours it may well be easiest to calculate the holiday entitlement that accrues (accumulates) as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of the hours you worked. The 12.07 per cent figure is:
The holiday entitlement is just over seven minutes for each hour worked.

that makes it easy - i missed that bit on the site.

though I would say he spent about that long each and every hour scratching his arse and looking like a plank. So maybe I should say he's already had his holiday pay

THANKS!!

That calculation doesn’t actually work for staff on varied hours – the average is based on the hours worked in the twelve weeks prior to the leave being taken, not the overall hours worked. As the employee has now left, the leave calculation would be based on the hours worked in the twelve weeks prior to them leaving – approximately the last 3 months of their brief employment.

It’s not the easiest laws to explain or follow (perhaps why Direct.gov get it wrong or make it sound easy), but section 13 of the Working Time Regs is the law that gives the right to leave. Section 16 of the WTR provides for a week’s pay for a week’s leave, and which laws define how the pay should be calculated. And finally, sections 221-224 of the Employment Rights Act 1996 provide the basis for calculating the value of the leave (the previous 12 weeks in which hours were worked).

To determine the amount due, calculate the average hours worked over the 12 weeks prior to the employment ending (a calculator to help) to have a value (in hours) of a week’s leave. From there, you then need to calculate the amount of leave due – this will depend on the leave taken, and the average days worked. For example, if the employee worked six days a week, and took three days paid leave, they would already have used 0.5 of a week’s leave; they would be entitled to 5.6 weeks (up to 28 days) for a full year, so a little less than 1.9 weeks for 3 months if my maths is correct.

Not easy to follow, but done properly it saves you the risk of a tribunal for deduction from wages claim. Drop me a PM if you still have problems sellickbhoy.


Karl Limpert