Holiday pay calculations can be based on: days or hours worked per week; casual or irregular hours; shifts; How a week's pay is calculated. ** A full breakdown of the 52 weeks is available in Section 4. In table 9, the worker is on holiday from 3 June to 7 June. A worker is paid monthly on day 21 of each month. Most workers who work a 5-day week must receive at least 28 days’ paid annual leave a year. All content is available under the Open Government Licence v3.0, except where otherwise stated, National restrictions in England from 5 November, Calculate your agricultural worker holiday entitlement, Holidays, time off, sick leave, maternity and paternity leave, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, part of a leave year, if the job started or finished part way through the year. You should check your contract. Short contract, temporary or agency workers should receive holiday pay in the normal way set out in this guidance. They have a term-time contract meaning they work 32 weeks per year. If your employer is spreading your holiday pay over the year by adding an amount on top of your hourly rate, this is known as 'rolled-up' holiday pay and your employer should not do this. Holiday pay for the leave accrued should then be calculated using an average of the 2 weeks in which they were paid. part of a leave year, if the job started or finished part way through the year Start now. The 52-week average weekly pay is then used to work out what that worker should be paid for their untaken holiday entitlement. Please note: Table 9 only shows part of the worker’s holiday pay reference period. An employer will need to use 52 paid weeks for a worker’s holiday pay reference period. These are some of the key cases in the area, but this is only a partial list. This can be challenging when a worker, for example, receives a higher pay rate for overtime worked within their holiday pay reference period, but this overtime needs to be approved by an employer at the end of the month (after payroll cut off) before it becomes payable. They’re still entitled to at least 5.6 weeks of paid holiday but this amounts to fewer than 28 days because they work fewer hours or days per week. Please visit, the pay already received by the worker (if any), what other workers doing a comparable role for the employer (or for other employers) are paid, a week starts on a Sunday and ends on a Saturday, the holiday pay reference period should start from the last complete working week that was worked ending on or before the first day of leave, starting on a Sunday and ending on a Saturday, (Monthly pay ÷ hours worked in month) = average hourly pay, Average hourly pay x hours worked in week = weekly pay, 15 hours in week 5 (only part of the week falls in the month), pay for week 1 = £9.62 x 25 hours = £240.38, pay for week 2 = £9.62 x 20 hours = £192.31, pay for week 3 = £9.62 x 35 hours = £336.54, pay for week 4 = £9.62 x 35 hours = £336.54, a temporary worker on a short-term contract. Rachel started with a new employer 20 weeks ago and is on variable pay. A worker has normal working hours where they are entitled to overtime pay if they work more than a fixed number of hours (see section 234). A worker who is at work for 5 days a week will therefore benefit from 28 days statutory leave per year (which is 5.6 x 5 days). This is because only pay for hours actually worked is taken into account, and weeks without any such pay are excluded.16 Similarly, where a worker with regular working hours (and variable pay) takes part of a week as holiday, only the hours in which they work should be used to calculate their average hourly rate for the reference period. Employers should still only count back as far as is needed to achieve 52-weeks’ worth of pay data if this is less than 104 weeks. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. A part-time music teacher has a zero-hours contract entitling them to 5.6 weeks’ annual leave. This is because you should get paid the same when you're on holiday as when you're at work. Remember, if you believe your holiday pay is incorrect, you have 3 months less 1 day from the date you received the last incorrect payment to take your claim to an employment tribunal. Employers will also need to calculate the workers holiday entitlement using the holiday entitlement calculator to ensure the correct pay is given for the holiday entitlement owed. In these situations, it may be acceptable for an employer to pay a worker for any additional holiday pay they are entitled to in the pay reference period that follows immediately afterwards, providing the worker is not thereby disincentivised from taking the holiday. Following rulings by the Court of Justice of the European Union,12 holiday pay for the 4 weeks’ leave guaranteed under EU law must be based on ‘normal remuneration’. The legislation also introduces a cap on how far back the reference period may go, 104 weeks. ↩, If a worker has worked for less than 52 weeks, please refer to point 1 in Section 2 of this guidance. Don’t worry we won’t send you spam or share your email address with anyone. This is known as ‘rolled up’ holiday pay. This week is excluded from the pay reference period as it is unpaid. The Court ruled that the workers had a contractual entitlement to have voluntary overtime taken into account for the purposes of calculating holiday pay. As the worker has regular hours, this week of holiday would not be included in the 52-week reference period. ↩, Under section 235 of the Employment Rights Act 1996, a week is defined as Sunday to Saturday (except for workers who are paid weekly by reference to a different week). Whether you are a worker or employer, if you are unsure about any aspect of holiday pay entitlement you can contact Acas: The law on holiday pay changed as of 6 April 2020. They take a week off work from Monday 7 July on unpaid parental leave. You can change your cookie settings at any time. Employers must follow the new law. The law does not state whether the holiday entitlement under Regulation 13 or 13A should be used first. Select the statement you most agree with: Supporting mental health in the workplace, Dealing with a problem raised by an employee, Please tell us why the information did not help, I cannot find the information I'm looking for. Some employers might offer better holiday pay schemes. However, in the case of workers without regular working hours, our view is that holiday pay should be included in the holiday pay calculation to calculate an average week’s pay.17 This includes taking into account weeks for which the only pay received was holiday pay. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. It must not include weeks where they were not paid as they did not work. If your work has no fixed or regular hours, your holiday pay will be based on the average pay you got over the previous 52 weeks. At the end of their contract (termination of employment) they should be paid in lieu for all holiday accrued during this 2-week period. The holiday entitlement calculator allows you to calculate how much holiday a worker on irregular hours or a zero-hours contract is entitled to within their current leave year. In working out what is fair, the employer should take into account: Previously employers looked back as far as necessary to get to 12 weeks’ worth of pay data to complete the reference period (as they ignored weeks in which no remuneration was payable). Work out holiday pay if you're paid monthly on GOV.UK. The holiday entitlement calculator can be used to calculate the paid leave that a worker has accrued. Some employers might offer a better holiday pay scheme. Contract workers or temporary workers (including temporary agency workers) are entitled to paid holiday. We’ll send you a link to a feedback form. The worker then returns to work for 4 weeks before taking a week’s holiday from Monday 11 August. In these cases, a week is treated as ending with that other day.5 For example, if a worker’s pay is calculated by a week ending with a Wednesday, then the employer should treat a week as starting on a Thursday and finishing on a Wednesday.
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