Understanding Holiday Entitlement

In the latest of a series of advice pieces for our sister publication, PiGs AKA People in Glazing Society, Peninsula discuss holiday entitlement, from statutory holiday’s to Bank Holidays.

All workers are entitled to at least the minimum statutory holiday entitlement – which is 5.6 weeks of paid leave per holiday year. Of course, you can offer more than this, but workers must be given at least this amount.

For full-time or regular hours workers – those working the same hours each week – this is straightforward to work out. Just multiply their usual weekly hours by 5.6 and you get the total number of hours they are entitled to. For example, an individual working 40 hours per week would be entitled to 224 hours of annual leave per year (40 x 5.6 = 224).

If a worker starts or leaves mid-year, then their entitlement is adjusted to reflect the amount of the holiday year they have worked.

However, what about those who work irregular hours, how much leave do they get? And what about Bank Holidays – are they included?

Let’s take a look at some of the common queries when it comes to holiday entitlements.

Part-year and irregular hours workers

Since 1 April 2024, employers have been able to pro-rata holiday entitlement for part-year and irregular hours workers, and if they wish to do so, use rolled-up holiday pay?

Firstly, what is a part-year or irregular hours worker?

• A part-year worker only works for part of the year and is not paid for the remainder of the year. For example, they may only work during school term-time.
• An irregular hours worker has a completely irregular and non-repeating working pattern. For example, they have a zero-hours contract or no set working pattern.

If you opt to pro-rata these workers’ holiday entitlement, then they will accrue holidays at a rate of 12.07% of hours worked in that pay period – where they have a statutory holiday entitlement.

This can either be paid at the time leave is taken or can be ‘rolled-up’ and paid at the same time as they receive their wages.

If you decide to pay at the time leave is taken, then this would be calculated as the average paid over the previous 52 weeks.

If you opt to use rolled-up holiday pay, then you will add on the extra 12.07% of total pay for work done in the pay period and pay it in each pay packet. The worker is then not paid when they actually take the holiday they have accrued.

Remember, workers who receive rolled-up holiday pay must still be permitted to take their holiday entitlement.

Bank Holidays

Contrary to popular belief, there is no statutory right for workers to take time off on Bank Holidays and they can be included in the statutory 5.6-week entitlement. Whether or not they are included will depend on the wording in their contract.

If they are included in their 5.6 weeks entitlement and they are required to work on some or all Bank Holidays, then you must ensure they are able to take a days’ leave in lieu of the Bank Holidays worked. Otherwise, there is a risk their total entitlement for the year may fall below the statutory minimum of 5.6 weeks.

Peninsula is a leading provider of Employment Law, Human Resources (HR), and Health & Safety consultancy services and today supports more than 30,000 businesses of all sizes across the UK and Ireland, alongside branches in Australia, New Zealand and Canada.

Contact Mark Witcomb, Regional Sales Manager from Peninsula by email or call on his mobile 07800 918679 for more information about how Peninsula can benefit your business.