|Calculating holiday entitlement|
Holiday entitlement can be difficult to calculate. There are so many variables to take into account; is the employee working full-time or part-time? Are they in a temporary position? Is the employee getting all bank holidays as paid days off, or only the statutory entitlement? And last, but not least: what does the term pro rata actually mean?
Holiday can only be taken as it has been accrued, so if the employee takes more time off than they are entitled to for the duration of their employment, the employer has the right to withhold a portion of their final salary as compensation. Stafftax will help with this calculation.
Part-time and temp employees
If the worker is employed on a temporary basis then they are also entitled to holiday. The calculation of the holiday entitlement for a temp employee in a full-time position is straight forward: divide 28 (the total number of days they would be entitled to if they were working the whole year) by 52 (the total number of weeks in a year). Then you simply multiply the answer with the number of weeks the employee has been contracted to work for.
Example 1: Employee A has been hired to work for 5 days per week for 16 weeks:
28 / 52 = 0.54 * 16 = 8.6
The holiday entitlement for Employee A is 8.6 days.
If the worker is employed on a part-time basis in a temporary position the calculation is a little bit more complex. First you need to establish the annual entitlement if they were working the whole year. As before, you simply multiply the number of days they work per week by 5.6. Then you follow the steps as outlined in the calculation above.
Example 2: Employee B has been employed to work for three days per week for 6 weeks:
5.6 * 3 = 16.8 / 52 = 0.323 * 6 = 1.9
Holiday entitlement for Employee B is 1.9 days.