Holiday pay for part time workers and workers with irregular hours

All workers are entitled to 5.6 weeks holiday per year which, for an employee working 5 days per week, equates to 28 days.
If an employee works 3 days per week, they would still be entitled to 5.6 weeks but this needs to be pro- rat’d. The calculation for this is 3, multiplied by 5.6, which equals 16.8 days.
This method cannot be used, however, where employees work irregular hours; instead they accrue 7.25 minutes for every hour worked.
For example, an employee has worked 55 hours in their period of employment. The statutory holiday entitlement is 6hrs 38 minutes of holiday pay calculated as follows:-
55 x 7.25, divided by 60 = 6.6458 which equates to 6hrs 38 minutes to be paid at the employee’s hourly rate.
The HMRC website has a calculator which will enable you to calculate your employee’s holiday pay using this method

 

To find out more on the subject, please contact Tracey Simpson. If you would like to view detail our Payroll blogs, please .

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