Hi, I need to work out holiday pay for 3 employees who work irregular hours.
I found a link on gov.uk that works out irregular hours by the hours worked in a year. but obviously I can only put in the hours worked in the year so far, so it's not going to be accurate.
Is there a better way that I can work this out?
Thanks
Sorted this now, Just been told to times the gross by 10.8% and divide by hourly rate
-- Edited by rachel_mclean on Sunday 12th of January 2014 01:50:08 PM
I would work out their average weekly hours (or if they have a contracted number of hours) and multiply by 5.6. This will give you their annual entitlement including bank holidays. I suppose at the end of the year you could look at total hours worked and calculate an average week then put in an adjustment.
I work for a client who has employees doing irregular hours, and I work out their holiday pay on actual hours worked (i.e. multiply by 12.07%). Therefore if they have worked say 48 hours in a month (or whatever period you are paying holiday pay for) in total, their holiday pay entitlement will be 48 * 12.07% = 5.8 hrs (rounded up). You then pay them 5.8 hrs at their normal hourly rate.
Hope this helps.
Edit: Sorry, should have said how the 12.07% is calculated. This is the 5.6 weeks annual entitlement divided by 46.4 weeks (52 weeks - 5.6 weeks) x 100. The 5.6 weeks are excluded from the calculation as the worker would not be at work those weeks in order to accrue leave.
-- Edited by Stardoe on Sunday 12th of January 2014 08:35:00 PM
