We all love and look forward to our holidays and our time away from work but calculating holiday entitlement for staff can be very Holiday Entitlementdifficult and confusing, especially if you have part time workers.

A full time employee (5 days a week) is entitled to 28 days or 5.6 weeks paid leave per year. There is no statutory entitlement to paid leave for public holidays. Any right to paid time off for such holidays depends on the terms of the employment contract. If your business is closed on a public holiday then you can include the public holidays as part of the statutory 28 days or 5.6 weeks’ holiday entitlement.

The holiday entitlement due to employees depends on the amount of days that they work. This is where the confusion arises. Holiday entitlements for a full time employee are based on the amount of days a week they work not the hours they work. For example if an employee works 5 days a week and 7 hours a day they are entitled to 28 days holiday.  If an employee works 5 days a week and 2 hours a day they are also entitled to 28 days holiday.  They will only be paid for the hours they would have normally worked.

Days worked                 Holiday entitlement

5 days a week                  28 days

4 days a week                  22.4 days

3 days a week                  16.8 days

2 days a week                  11.2 days

1 day a week                    5.6 days

If you have included the bank holidays in the calculation then more confusion arises. Let me explain.

At the beginning of the holiday year you will need to look at which days the bank holidays fall on, most are Mondays. You will then need to look at all employees who work 4 days or less and if a bank holiday falls on a day they normally work you must deduct that from their holiday entitlement. Once you have deducted all of these you will then be left with the days they can then take as holiday for the rest of the year.

Part days cannot be rounded down, they can only be rounded up or you may want to consider letting the employee come in late one day or finish early.

If you currently give employees who work less than 5 days a week all 8 bank holidays then you are giving them too much holiday which means an additional cost to the business.  Can your business really afford that additional cost? It also means they have more holiday than employees who work 5 days a week!  Interestingly if an employee works more than 5 days the holiday entitlement does not increase.

Still confused about holiday?  Call 01980 755075 or email support@bloodystaff.co.uk

Find out more about employing staff by reading the ’41 Things Every Employer Needs to Know about Employing People.’