A reasonable calculation of the total holiday entitlement from 1-Jan to 27-Jan would be 27/365 x 28 = 2.07 days.
But they've already taken 1 day (the bank holiday 2-Jan) so they have 1.07 days to come, payable at their normal daily rate (probably their annual salary/260 if they work a 5 day week).
-- Edited by Tom McClelland on Thursday 26th of January 2012 03:58:44 PM
Firstly thanks to everyone that helped me yesterday with my payroll question, the explanations were great and helped me to explain to client, the options she had for calculating pay for a mid month joiner.
Same Client, this time the question in centered around Holiday Entitlement.
Client has an employee that is leaving her on the 27.01.12 and will be paid up to that date, payroll usually calculated up to the end of each month.
What the client is trying to figure out [along with me] is what holiday entitlement this employee may or may not be due for this month.
The company holiday year runs from Jan Dec apparently, employee receives 28days hols & client says that they was no entitlement carried forward from 2011.
So I was thinking the holiday entitlement should be 28/12 = 2.33 days per month owed, but the 02.01.12 was a bank holiday and they havent worked a full month either??? [leaving 27th]
Any help would be appreciated and even better if anyone could share their formulas for working out holiday entitlement for someone leaving mid way through a holiday year or share how holiday pay would be calculated for someone that works varying hrs each week.
Hopefully after this, she will stop asking questions but always helpful to know the answers.
An alternate treatment would be to take the number of days actually *worked* since 1 Jan up to the 27th, which is presumably 19 based on a 5 day week, and multiply it by 12.07% (the statutory holiday accrual rate), giving the answer 2.29. Again subtract the bank holiday already taken and paid-for leaving 1.29 days owing, to be paid at 1/260 of their annual salary as before.
As you can see you can get a noticably different answer with a slightly different treatment. Pick a method and stick to it in all cases.
Thanks Tom, See what you mean about noticably different amounts.
I've given the Client both methods and funny enough she's told me that she's going to go with the 1st suggested way of working it out.....
Thanks Again.
As long as she sticks to that method. In a different situation the increased costs could be reversed and I doubt that picking and choosing the method that gave the least pay each time would be acceptable.
