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How to Calculate Pro-rata Holiday EntitlementPosted on by Angela Rhodes
One of the most frequent questions asked of us is how to calculate pro-rata holiday entitlement for a part-time employee.
A full-time employee who works five days per week, Monday to Friday, is entitled to a statutory minimum of 28 days’ holiday, which equates to 5.6 weeks. If a part-time worker works five days, Monday to Friday for the same number of hours each day, albeit probably shorter hours than a full-time employee, they too will be entitled to 28 days or 5.6 weeks. Each day will equate to their normal number of working hours.
A full time employee works from 9am to 6pm, Monday to Friday, with a one-hour lunch break, totalling 40 working hours per week. A part-time employees works Monday to Friday from 9am to 12.30pm and so their working week is 17.5 hours per week. Both will be entitled to 28 days or 5.6 weeks. Each day of holiday for the full-time employee will equate to 8 hours and for the part-time employee 3.5 hours.
If the part-time employee works say 3 days per week, 8 hours per day, then their entitlement is 3/5 of 28 days or 5.6 weeks This equates to 16.8 days – this always has to be rounded up to the nearest half day, so in this case 17 days.
However, the difficulty comes if you have someone who works a different number of hours each day. In this case, we recommend calculating their holiday entitlement in hours rather than days.
So, for example:
An employee works 5 hours on Monday, Wednesday and Friday and 3 hours on Tuesday and Thursday, giving a total of 21 hours per week. They will therefore be entitled to 5.6 weeks x 21 hours = 117.6 hours, rounded up to 118 hours per annum. If you do not work bank holidays, they will need to deduct the hours for each bank holiday during the holiday year from their annual entitlement at the start of each year.
For employees who join part-way through a holiday year, they accrue holiday at the rate of one-twelfth of their total entitlement for each month worked.
The Company holiday year runs from January to December each year. The employee joins the Company on 1st August and will therefore work five months during that holiday year. They will therefore be entitled to 5/12 of the annual entitlement. So, 5/12 of 28 days is 11.66 days – rounded up to 12 days, inclusive of any bank holidays that fall during the remainder of the holiday year.
It is sometimes difficult to get your head around this so, if in doubt, just give us a call and we’ll be delighted to help.
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