Holiday allowance is calculated based on the number of days or hours your employee works each week.
Full-Time Employees
A full-time employee, working 5 days per week, would be entitled to an annual holiday allowance of 28 days (5.6 weeks) of paid holiday per annum. However you may offer more than the statutory allowance, should you wish.
Part Time Employees
A part-time employee is entitled to a proportion of the 28 days holiday. This would be calculated by multiplying the number of days per week they work by the holiday accrual rate of 5.6.
For Example: If John works four days per week, he would be entitled to 22.4 days of holiday per annum. This would be calculated by multiplying 3 (days) by 5.6 (accrual rate) = 22.4 days.
When calculating holidays, fractions must be honoured. They can be rounded up to a whole number, but can not be rounded down.
If your business employs staff that do not work the same number of hours each day, their holiday entitlement should be calculated in hours rather than days.
For Example: If Sally works eight hours a day on a Saturday and five hours on a Sunday, She would be working a total of 13 hours per week. Sally’s holiday entitlement would therefore be 72.8 hours of holiday per annum.
This would be calculated by multiplying 13 (hours) by 5.6 (accrual rate) = 72.8 hours.
A part-time employee is entitled to a proportion of the 28 days holiday. This would be calculated by multiplying the number of days per week they work by the holiday accrual rate of 5.6.
Fixed Term Employees
Employees on a fixed-term or temporary contract are still entitled to holiday. The holiday entitlement would be prorated based on how many weeks they will be working across the year.
Bank Holidays
Holiday entitlement is inclusive of bank holidays. This means that if an employee wishes to not work on a bank holiday, this would be deducted from their annual entitlement.
If the employee’s working days do not fall on a bank holiday, this would not need to be deducted from their allowance.
You can also use our handy holiday calculator, for help calculating the annual entitlement for your employees.
As a Quartz customer, our team of payroll experts can assist with calculating the holiday entitlement of your employees. Get in touch with the team today on 020 3137 4408 or by emailing info@quartzpayroll.co.uk.