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 household giving them 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 your employee takes more time off than they are entitled to for the duration of their employment, you have the right to withhold a portion of their final salary as compensation. Stafftax will help with this calculation.
Part-time and temp employment
If your employee is employed on a temporary basis they are also entitled to holiday. The calculation of the holiday entitlement for someone in temporary employment 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) with 52 (the total number of weeks in a year). Then you simply multiply the answer with the number of weeks they have been contracted to work.
Example 1: Employee A has been hired to work for Employer B 5 days per week for 16 weeks:
24 / 52 = 0.54 * 16 = 8.6
The holiday entitlement for Employee A is 8.6 days.
If the employee 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 C has been employed to work for Employer D for three days per week for 6 weeks:
5.6 * 3 = 16.8 / 52 = 0.323 * 6 = 1.9
Holiday entitlement for Employee C is 1.9 days.
|Basic document checks|
According to the Asylum and Immigration Act 2006 all UK employers have a legal duty to make basic document checks on each person they intend to employ in order to establish that they have a right to work in the UK and are here legally.
|An example: a net wage agreement can be costly|
By agreeing a net wage with your employee you are effectively agreeing to pay all their taxes, irrespective of their tax code or tax position.