31st July 2012
There are often queries related to holiday entitlement, pay and accruals.
On the internet you’ll find lots of guidance, but let’s cover the main areas here:
Employees have a right to the legal minimum of at least 5.6 weeks’ paid annual leave, but could receive more than that, depending on what’s stated in the employment contract.
For a full time person working 5 days per week, that’s 28 days.
For a part time person, working 4 days it’s the same level of 5.6 weeks, pro rata = 22.4 days.
Holiday entitlement can be recorded in days or hours.
If employees work a number of different days per week, use their contracted hours per week and multiply by 5.6 weeks.
The employer can control some things about holiday, including when it should be taken and whether they include Bank Holidays in your entitlement.
When a new job is started, holiday entitlement starts to build up and any holiday leave is paid at normal rate.
Holiday leave accrues throughout your ordinary and additional maternity leave and paternity and adoption leave.
When employees leave a job, they get paid for any holiday not taken but entitled to, pro rata.
To qualify for the right to annual leave, you need to be classed as a ‘worker’.
If you are self-employed, there is no statutory right to paid annual leave.
Your employer may give you more than the minimum 5.6 weeks’ leave as part of your contract terms of employment.
There’s no automatic right to additional holiday, even if it’s unpaid, unless your contract states it. Your employer can set their own rules on any holidays they give over and above the legal minimum. Your employer is not allowed to give you less than the legal minimum.
You do not have a statutory right to paid leave on Bank and Public holidays. If you receive paid leave on a Bank or Public holiday, this can count towards your minimum holiday entitlement of 5.6 weeks.
There are normally eight permanent Bank and Public holidays in England and Wales (ten in Northern Ireland and nine in Scotland).
If you work on a Bank or Public holiday, there is no automatic right to an enhanced pay rate. What you receive depends on your contract of employment terms.
If you are part time and your employer gives workers additional time off on Bank Holidays, this should be given pro rata to you as well, even if the Bank Holiday does not fall on your usual working day.
Scott Maddy MCIPD