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Holiday Entitlement – Pay

Holiday Entitlement – Pay

Entitlement

Almost all workers are legally entitled to 5.6 weeks’ paid holiday per year (known as statutory leave entitlement or annual leave). An employer can include bank holidays as part of statutory annual leave.

Working 5 days a week

Most workers who work a 5-day week must receive at least 28 days’ paid annual leave per year. This is the equivalent of 5.6 weeks of holiday.

Working part-time

Part-time workers get less paid holiday than full-time workers. They’re entitled to at least 5.6 weeks of paid holiday but this amounts to fewer than 28 days because they work fewer hours per week.

Use the holiday entitlement calculator to work out a part-time worker’s leave.

Irregular hours

People working irregular hours – for example, shift work or term-time work – need to calculate their leave entitlement for irregular hours.

Limits on statutory leave

Statutory paid holiday entitlement is limited to 28 days. For example, staff working 6 days a week are only entitled to 28 days’ paid holiday.

Bank or public holidays

Bank or public holidays do not have to be given as paid leave.

An employer can choose to include bank holidays as part of a worker’s statutory annual leave.

Upcoming bank holidays in England and Wales

2017

28 August Monday Summer bank holiday

25 December Monday Christmas Day

26 December Tuesday Boxing Day

2018

1 January Monday New Year’s Day

30 March Friday Good Friday

2 April Monday Easter Monday

7 May Monday Early May bank holiday

28 May Monday Spring bank holiday

27 August Monday Summer bank holiday

25 December Tuesday Christmas Day

26 December Wednesday Boxing Day

If a bank holiday is on a weekend, a ‘substitute’ weekday becomes a bank holiday, normally the following Monday.

Your employer doesn’t have to give you paid leave on bank or public holidays.

Bank holidays might affect how and when your benefits are paid.

Extra leave

An employer can choose to offer more leave than the legal minimum. They don’t have to apply all the rules that apply to statutory leave to the extra leave. For example, a worker might need to be employed for a certain amount of time before they become entitled to it.

Other aspects of holiday entitlement

Workers have the right to:

  • get paid for leave
  • build up (‘accrue’) holiday entitlement during maternity, paternity and adoption leave
  • build up holiday entitlement while off work sick
  • request holiday at the same time as sick leave

Disputes

Paid annual leave is a legal right that an employer must provide. If a worker thinks their right to leave and pay are not being met there are a number of ways to resolve the dispute.

Holiday pay: the basics

Workers are entitled to a week’s pay for each week of leave they take.

A week’s pay is worked out according to the kind of hours someone works and how they’re paid for the hours. This includes full-time, part-time and casual workers.

Working pattern – Pay

  • Fixed hours and fixed pay (part time or full time) – A week’s holiday pay equals how much a worker gets for a week’s work
  • Shift work with fixed hours (part time or full time) – A week’s holiday pay equals the average number of weekly fixed hours a worker worked in the previous 12 weeks at their average hourly rate
  • No fixed hours (ie casual work) – A week’s holiday pay is the average pay a worker got over the previous 12 weeks (in which they were paid)

Calculating average hourly rate

To calculate average hourly rate, only the hours worked and how much was paid for them should be counted. Take the average rate over the last 12 weeks. If no pay was paid in any week, count back a further week, so that the rate is based on 12 weeks in which pay was paid.

Rolled-up holiday pay

Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’). If a current contract still includes rolled-up pay, it needs to be re-negotiated.

More information

This is a general guide and doesn’t cover every type of working arrangement or all scenarios. For specific information about your holiday pay entitlement, contact the Advisory, Conciliation and Arbitration Service (Acas).

The information above regarding holiday entitlement / pay  is from the HMRC / GOV.UK websites, for more information on holiday entitlement and calculators visit GOV.UK.