payroll supplier banner

How to Calculate Holiday Entitlement for Part-Time Workers?

blog img

It’s easy to get sucked into the work as a leader and forget to take a breather now and then. Your employees, even the ones working less than full-time, put in just as much effort as you do, and they deserve a break every once in a while to ensure they can continue to give you their best.

When fewer people work for a company, each person’s absence can feel like a bigger inconvenience because there is always something to do. Your responsibility is to know how much holiday time your employees are entitled to and ensure that they take it, as an overworked workforce quickly becomes exhausted and unmotivated.

In this blog, we will talk about the part time workers holiday entitlement & how the employer get calculated part-time workers pay through payroll outsourcing company.

How much holiday pay part-time workers are entitled for can be determined by following these steps:

Since it is illegal to treat part-time workers differently than full-time workers, part-time workers have the same holiday privileges as full-time workers. But their pro rata share of the annual leave must be determined.

5.6 weeks (28 days) of paid time off every year must be given to full-time workers. Consequently, a part-time worker’s yearly leave is calculated by multiplying the number of days they work per week by 5.6.

If they work three days a week, for instance, it would be: 16.8 holiday days per year  (3 x 5.6).

Multiply 5.6 by the total number of workdays to get the answer. You may calculate their partial holiday pay from there. It’s wise to figure that out as soon as possible so employees can plan accordingly once they start working for you.

It’s important to remember that even if you work six or seven days a week, the maximum amount of statutory paid leave you can take each year is still 28 days.

Holiday Rights for Part-Time Workers

Holiday Rights for Part-Time Workers

Every worker has the legal right to a certain amount of paid holiday time, but some companies go above and beyond the basic requirements. The most important aspects of holiday rights are as follows:

  1. At the very least, you should receive 5.6 weeks of paid holidays annually.
  2. Holiday time is subject to the employer’s discretion.
  3. For time off, employees will receive their regular income.
  4. Part-time persons are entitled to holiday pay equivalent to 5.6 times their regular work week.
  5. Employees start to  accrue holiday leave as soon as the start working
  6. Employers  can count bank and public holidays toward employees  bare minimum.
  7. Any accumulated annual leave that has not been used will be paid out to employees  if they leave the business.

In most cases, the employer has the right to dictate when employees  take their holiday.

Holiday Calculation for Part-Time Workers

The number of holidays to which a part-time worker is entitled must be determined on a pro-rata basis or in proportion to the number of hours worked. Annual leave for a full-time worker amounts to 28 days (5 workdays x 5.6). Take the case of four workdays as an illustration. Four workdays multiplied by 5.6 holiday days is 22.4 days of holiday.

A holiday that lasts less than a full day is usually rounded up to the nearest whole day for convenience.

A common practice among many employers is to provide part-time workers with prorated holiday pay. This is determined by the total number of hours worked rather than the number of days worked in a given pay period. 

Calculating part-time working holiday entitlement through pro-rate is relatively straightforward:

Determine the number of hours worked per week by the part-time employee. So, for example, if a full-time employee has worked five days a week and a part-time employee has worked three days a week, the calculation would be: 

Part-time entitlement = Part-time days worked/full-time days worked x full-time entitlement. 

This holiday calculation for part-time workers is used all over the UK. Moreover, bank holiday entitlement for part-time workers in the UK is also added to their annual leave entitlement.  

The holiday calculations for part-time workers are typically calculated based on the number of days and hours they have worked and may vary depending on the employment terms and conditions. Workers cannot be discriminated against because they choose to work fewer hours than their full-time counterparts do. In contrast to full-time employees, those who work fewer hours are considered part-time. Statutory annual leave entitlement guarantees nearly all employees 5.6 weeks of paid holiday each year. Statutory leave might include bank holidays if the employer chooses so.

Part-Time Workers

Bank Holiday Entitlement for Part-Time Workers

Mondays and Fridays account for the vast majority of UK bank holidays. If a company offers paid holidays, but its part-time workers only work on weekends and holidays, the part-timers would therefore have to have the bank holidays included into their holiday calculator, so they can take the time of elsewhere.

The business would give their part-time workers pro-rated bank holiday allowances. This is determined by the number of hours worked rather than the number of days worked or the presence or absence of bank holidays.

The most important fact to remember regarding bank holidays is that workers have no legal guarantee of time off on the actual bank holiday. This implies you should include a statement in your employment contracts outlining your policy for dealing with bank holidays. It’s up to you to decide between options like:

To incorporate bank holidays into the 5.6 weeks of statutory paid annual leave that employees are entitled to.

To allow employees to take time off on bank holidays.

Employees that work bank holidays must have the hours included into their annual leave entitlement to take at another date.

It is necessary for employees to work on bank holidays to continue obtaining their full 5.6-week entitlement over the year.

Calculating Annual Leave as Number of Hours Per Year

Workers on fixed-hour contracts typically receive 28 paid holiday days per year, if employees work 5 days per week. To be clear, the 5.6 weeks can include weekends and holidays observed by the government. If you have a contract with variable, zero, or irregular hours, you are entitled to paid time off based on your total number of hours worked.

Multiply your average weekly hours worked by 5.6 to get a rough estimate of your holiday. For instance, if you work 37.5 hrs a week (over 5 days) , you would be eligible for 210 hours of annual leave every year.

37.5hrs  x 5.6 weeks = 210 hrs

The same calculation applies if you work a part-time job. You will therefore be entitled to 5.6 weeks multiplied by the number of hours you work per week, regardless of how many days you work. This figure would be multiplied by 5.6, for instance, if you only worked 15 hours  a week.

15 hrs  x 5.6 weeks = 84 hrs

Accruing annual leave in hours for part time workers can be useful if they do not work the same hours each day they work, as a days holiday would then have to be worked out on an average of hours worked on a working day, which can make it rather complicated.

Employees like to know in advance their entitlement to paid annual leave, so when they book time of they are confident that they will receive their normal pay.  Clear annual leave policies should be put into the employees contracts to avoid any confusion.

 

Contact
close slider