How to calculate part-time holiday entitlement

Currently in the UK there are more than eight and a half million people working part-time, so if you are an employer who has part-time employees you need to make sure that they benefit from bank holiday leave, even if they don’t work on bank holidays.

So read on for some advice on how to ensure you don’t disadvantage your part-time workers and keep on top of your legal requirements.

For all employees, the minimum statutory holiday entitlement by law is 5.6 weeks, bank holidays included, which companies are not obliged to give as paid leave, however most companies choose to include them as part of the annual leave entitlement.

For part-time employees, the same applies, minimum statutory leave is 5.6 weeks, but how do you work in the bank holidays? and what if any employees don’t work Mondays or Fridays when bank holidays normally fall?

Holiday

Most of the UK’s bank holidays do fall on a Monday or Friday so in companies that give paid bank holidays, and where part-time employees don’t usually work on these days, those part-time employees would end up receiving proportionately fewer days’ leave than their full-time colleagues.

To prevent this inequality, many companies give their part-time employees a pro-rated bank holiday allowance. This is calculated based on the number of hours worked, regardless of the days that are worked and irrespective of whether or not they would be bank holidays.

Let’s take an example of a company where the full-time employees get eight bank holidays, there are usually 8 bank holidays per year in England and Wales, as paid leave on top of their normal allowance. They work five days a week for a total of 40 hours, so are effectively receiving 64 hours of bank holiday leave (8 days x 8 hours = 64 hours).

To pro-rata this for a part-time employee working two days a week, the company would give 25.6 hours of bank holiday leave. That’s calculated as: 16 hours worked per week/40 hours maximum working time per week x 64 hours of bank holiday leave.

This bank holiday entitlement for part-time workers calculator breaks it down step by step for you into a formula:

(number of hours worked per week/number of hours in a full-time week) x (number of bank holidays x hours per working day).

Part-time holiday allowance - hr revolution - outsourced hr

This does cause minor issues in that you may end up with part-time employees working parts of days. In the example above, the 25.6 hours would be rounded up to 26 hours, which for an eight hour day is three and a quarter days. Taking a quarter-day holiday – or two hours in this case – is sometimes difficult for a company to administer.

If the part-time worker is due to work on a bank holiday, then they would need to book it as holiday as normal and it would come out of their total holiday entitlement.

You don’t need to follow this method to calculate bank holiday for your part-time workers,  there are other options such as calculating in days etc but you must ensure they are consistent and fair and that both their part-time and full-time workers are treated equally.

If calculating annual leave is something you struggle with, you are not alone and we can help! HR Revolution have the perfect solution for you in the form of breatheHR, easy to use HR software, which has a holiday allowance calculator perfect for working out part-time employee allowances.

It is always prudent to get HR advice when calculating holiday, so if you have any questions, please get in touch with us to find out more:+44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

HR Blogger

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