You can't compare apples with oranges. If you're going to say that holiday is 28 days a year you have to calculate holiday based on a 5 day week, so someone who takes 14 days off only the normal working days of that (probably 10) come out of their holiday entitlement.
If you're going to treat every day in a week off as a holiday then you have to change the annual entitlement to 5.6 x 7 = 39.2 days.
-- Edited by Tom McClelland on Wednesday 27th of March 2013 04:49:47 PM
Hope everyones having a good time as its nearing the payroll year end !
I am in bit of Confusion.
Holiday calculation is relatively straight forward for employees on fixed salary and working a fixed pattern(mon to fri). We can easily cap them to 28 days in a year.
However I am slightly confused with full time employees working irregular pattern and on hourly rate.
For eg: A full time subway manager has a contract of employment for 40 Hours/week. Salary is 7.69 per hour.. Now for this employee it wont be prudent to put him on accrual system as lets say if he does 55 hours average, it would be 55*52*12.06=344.916 hours holiday per year.
As per contract he is offered 40 hours every week(subject to business condition), is it possible to make the employees holidays on days? So any body doing 37.5 hours or more would get 28 days holiday. So an employee contracted for 20 hours @ 6.19 would get, 14.93 days paid holiday.
So imagine an example where employee A(contracted for 40hours/wk) has applied for 14 days on trot for holidays. A's past 12 weekly average is 43.00 hours and pay rate is 6.19. So entitlement would be 14/7*43.00=86 hours. Does it mean this 14 days can be fully set off against A's Annual entitlment of 28 days? Was thinking if A turns around and says i only work 5 days in a week. So that average would be only for 5 days and not for7 days. And in weeks entitelement A would need to get 5.6 weeks
Whats the best way to solve this issue where we want to cap employees on hourly rate working irregular patterns to days or weeks?
Yes makes sense. It would be 5.6 weeks. The employee can have 39.2 days off , of which 28 will be paid. So if i work on weeks rather than days would solve my problem i think. So for 37.5 hours or more would be 5.6 weeks, 30 hours would be 4.47 weeks and so.
Yes makes sense. It would be 5.6 weeks. The employee can have 39.2 days off , of which 28 will be paid. So if i work on weeks rather than days would solve my problem i think. So for 37.5 hours or more would be 5.6 weeks, 30 hours would be 4.47 weeks and so.
They should get 5.6 weeks of paid holiday at their normal weekly rate (whatever that is) regardless of hours worked per week.
Oh my holidays are a nightmare. I've looked at this in detail with legal advice and its still confusing! I was advised that if the contract says they are entitled to 28 days and they work set hours, then they accrue holidays in days regardless of how many hours they work on a particular day (contracted hours).
Step one is check the contract. Be very careful with bank holidays too. The legal min. 28 days includes them but if you give them as extra on top of 28 days then this entitlement applies to all employees.
However if they often work irregular hours then it's a different story involving averages or percentages! To get you started
Another way to calculate irregular hours is to multiply hours worked by 12.07%.
One of my clients employs a lot of staff on ad hoc basis depending on need. Each month the wages are calculated, and 12.07% holiday pay is added. As they never actually book any holiday time off eg the next day could be classed as their holiday.
I use the 12.07% method for one of my clients as most of her employees are on a zero hours contract and all work irregular hours. They accrue 12.07% of every hour worked as holiday and then they are paid this holiday pay after each holiday period (the client is a training school and employees have holidays in the school holidays).
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