Zero hours holiday pay?

[Sideways28]

Hi all,

We have an employee who upon joining us wanted to be on a zero hour contract as this suited their lifestyle, they are now leaving due to moving away and having trouble calculating their holiday pay (all of our other employees are regular contracted hours so this is all new to us whereas this employee likes to pick and choose their hours to suit them, which we managed to work around)

Our book keeper believes we should calculate their holiday pay owed by giving them 12.07% of the hours they have worked, however by looking at Google I am unsure if this is the correct way?

So our Employee A worked the following

999 hours worked over 27 weeks (3 weeks they didn’t wish to work)

Plus taken 68 hours holiday

Week 1- 43 hours

Week 2- 24.50 hours (plus took 12 hours holiday)

Week 3- 46.50 hours

Week 4- 45 hours

Week 5- 39 hours

Week 6- 40.50 hours (plus took 6 hours holiday)

Week 7- 39.50 hours

Week 8- 49.50 hours

Week 9- 27 (plus took 8 hours holiday)

Week 10- 51.50

Week 11- 48.50 hours

Week 12- 51 hours

Week 13- 42.50 hours

Week 14- 41 hours

Week 15- 39 hours

Week 16- 47 hours

Week 17- 45 hours

Week 18- 46 hours

Week 19- 48.50 hours

Week 20- 45 hours

Week 21- No hours

Week 22- No hours

Week 23- 30 hours

Week 24- 30 hours

Week 25- 35 hours (plus took 2 hours holiday)

Week 26- 44.50 hours

Week 27- No hours but took 40 hours holiday

Many thanks for any help

 

[Newchodge]

Hi all,

We have an employee who upon joining us wanted to be on a zero hour contract as this suited their lifestyle, they are now leaving due to moving away and having trouble calculating their holiday pay (all of our other employees are regular contracted hours so this is all new to us whereas this employee likes to pick and choose their hours to suit them, which we managed to work around)

Our book keeper believes we should calculate their holiday pay owed by giving them 12.07% of the hours they have worked, however by looking at Google I am unsure if this is the correct way?

12.07% was used by many and recommended by ACAS until a tiny little case called Harpur Trust v Brazell came along in 2018. The final judgment came out from the Supreme Court a few weeks ago.

An employee who is continuously contracted but does not necessarily work every week is entitled to 5.6 weeks' paid holiday every annual leave year (pro rata if they start or stop during the year. The week's pay they get paid is calculated by taking the average of the last 52 weeks during which they were paid to work, so weeks when they did no work, were on sick leave etc do not count. You have to go back up to 104 weeks to establish the 52 weeks average. If they have not worked for 52 weeks, average what you can. but always ignoring zero pay weeks.

An extreme example: An exam invigilator is contracted to invigilate for 1 week every year. They are never dismissed, so the contract rolls on. The 1 week they work they get paid £1,000. So they get £1,000 salary and £5,600 holiday pay.

I would like to point out that I am only reporting the law, not making it.

Every time someone whose income fluctuates week to week (or month to month) takes holiday you have to recalculate their average weekly pay.

OP, you may have seriously underpaid the holiday they have ben paid for already.

In 2017 I considered myself to be a 30-odd year old payroll provider with glossy brown hair. Now, 5 years later and following this decision, I am a grey haired pensioner.

 

[Sideways28]

Thanks very much Newchodge, that certainly complicated things somewhat, we will work it out the way you described, thanks again

 

[Newchodge]

Thanks very much Newchodge, that certainly complicated things somewhat, we will work it out the way you described, thanks again

Good luck