Calculation Entitlements

CALCULATING AN EMPLOYEES LEAVE ENTITLEMENT

Working out the leave entitlement is a very simple calculation for those whose leave year starts on
1 October. But not everyone has their leave calculated from October to October.

If the new rules come into force during your leave year, employees will still get a boost to their minimum
entitlement. Your extra leave will depend on how much of your leave year falls after the change date.

If you have an April to April leave year, for example, half your leave year falls after 1 October and therefore
employees will get half of their full extra entitlement. For a five-day-a-week employee this would be an
extra two days.

Those whose leave years start on 1 January will get one quarter of the extra entitlement in the leave year
that ends on 31 December 2007, which gives them 4.2 weeks, which is 21 days for a five-day-a week
employee (see ready-reckoner below).

There are no rules on how employers should deal with part days, so employers can insist that an employee
takes, say 0.73 of a day’s leave.

JOBS WITH IRREGULAR WORK PATTERNS

If an employee works on a casual basis or very irregular hours, it is often easiest to calculate holiday entitlement that accrues as hours worked.

The holiday entitlement of 5.6 weeks is equivalent to 12.07% of hours worked over a year.

The 12.07% figure is 5.6 weeks holiday, divided by 46.4 weeks, 46.4 being 52 weeks - 5.6 weeks annual leave entitlement. The 5.6 weeks are excluded from the calculation as the worker would not be at work during those 5.6 weeks leave in order to accrue annual leave.

So if an employee works 10 hours, they are entitled to 1.21 hours paid holiday (10 x 12.07%=1.21 hours)

HOW DO YOU MANAGE PART DAYS?

Holiday entitlements for some employees who work part-time may be made up of part days - for example, 22.4 days for someone working four days a week. An employer can manage these part-days by:

• taking the part-day off a days shift (an employee leaves early or comes in late)
• rounding the time up to the nearest full day (the time cannot be rounded down)
• paying an employee for the part-day owed
• allowing the employee to carry over the part-day to the next leave year

From 01st April 2009 payment in lieu cannot be provided for holidays over 20 days (for those working full-time)

CAN EMPLOYERS 'BUY BACK' THE NEW LEAVE DAYS?

Employers are not allowed to buy back the pre-existing four weeks’ entitlement.

However, employees can agree to give up their extra holiday in return for some extra pay, but only until April 2009.

After that,everyone must get their full entitlement. Employers who offer more than the legal minimum will still
be able to offer to buy back this extra leave.