Nanny advise needed, pro rata paid nanny and calculating holiday time owed

[Samanthadodson]

I need some help and advise, I have had a nanny for 18months now and she has just handed in her notice, she has been paid on a pro rata basis as she is only required to work 4 weeks of the school holidays and term times, my family have my children for the rest of the holiday,

So she wasn't out of pocket when the children were away such as the summer holidays I calculated her pay and divided it equally across the year,

She is paid £x despite working a 32 hour week a 50 hour week or a 0 hour week, the new year started on 8th June and she is leaving us on the 6th November,

The problem I have is does her final salary need to be adjusted as she has had 25 days paid holiday (all summer) within 6 months but is now leaving me before the 12 months of agreed contracted pro rata hours, I'm really confused, I think I have worked it out that she would only be entitled to 6.4 days holiday (based on yearly hours being calculated and divided by the weeks worked) in the time served so do I reduce her final pay to incorporate the 18.6 days she has been paid for but not earned?

Please can anyone help me as I'm completely lost,

Thanks

Your payroll company will make this calculation for you.

New year started 8th June. What happened in August? If term time only then would not have any work days in August but in your case there may have been some work days

Calculate the total number of working days between the dates.
Then work out what holiday entitlement should be for that. Were you giving better than statutory minimum holidays?

So if she's worked for 6 months of the year then she in entitled to half her contractual holiday allowance as stated in her contract, if she works 5 days a week, this is a min of 28days - although she may get more than that.

So she is entitled to at least 14 days paid holiday over the 6 month period, therefore she potentially owes you for 11 days.
Remember, however, you cannot make deductions from salary unless its specifically mentioned in her contract.

Do you actually care that she has had more holiday than the contract may permit?

If it is not an issue then don't make it one.

You have authorised all the holiday they have taken and if they have had 25 days in the Summer that is almost their entire years entitlement, so is some of that holiday not at your choice, rather than their choice?

Yes she has a higher level of time off, 10 weeks per year to be precise, she worked 6 days in the summer at the start and end of the holidays but had all others in between this off and was paid, I've worked out it is roughly 11-14 days she owes me and it is in her contract as I have checked, I'm worried about confrontation when I explain this to her but I just need to ensure it is all accurate,

Hi Cindy

It is a financial issue as it means she has been over paid by 2 weeks, she is paid pro rata over a year and that is contracted that she completes a full year of service to gain that time off and salary attached, the holiday wasn't taken as either choice it was in her contract as my family have the children for me so she is not needed,

Term time workers are usually paid for the hours they work then for holiday hours. That total may be split over 12 months.
I am not clear on how you are doing things regarding holiday as over Summer you did not need them and you may be using a term time contract rather than a full time contract.

If you use a payroll company then talk to them as you can show them the contract.

June to November is roughly 5/12ths of a year. So if they were a full time nanny, they would get 5/12ths of their annual holiday entitlement.

What is confusing is that your nanny is working term time plus 4 weeks. That might be 43 weeks. So what happens on the other 9 weeks? If they worked for you for a full year, would they get 9 weeks paid holiday?

Paid pro rata over a year? What do you mean by that?

Are you paying them for 44 weeks of the year, plus 9 weeks of holiday? Is the payment then split into 12 equal monthly amounts?

If the hours vary a lot week to week, how are you calculating the pay? Are they actually contracted to work a set number of hours in any period, such as per month, per year?

I think talking about it as 'paid holiday' is confusing, because it isn't paid holiday it's the period of the year that you don't employ her, as specified in your contract. The pro rata pay just means her payment for the hours she does work is spread out over the year, not that you actually pay her for the school holidays when she doesn't have your children.

I think you need to work out how many weeks (hours) she has actually worked and how many weeks you have actually paid her for. Then work out the difference. Remember to allow for any paid holiday she is due.

You need to adjust everything, so pay as well as holiday.

I do not understand what you mean by:
She is paid £x despite working a 32 hour week a 50 hour week or a 0 hour week

Lets say you mean that in term time they work a 32 hour week, in holidays they work a 50 hour. For y number of weeks per year they work 0 hours.

Look at each week they have worked:
8 June - 32 hours?
15 June - 32 hours?
22 June - 32 hours?
29 June - 32 hours?
6 July - 32 hours?
13 July - 32 hours?
20 July - 50 hours?
27 July - 50 hours?
3 Aug - 50 hours?
10 Aug - 50 hours?
17 Aug - 0 hours?
24 Aug - 0 hours?
31 Aug - 0 hours?
7 Sep - 32 hours?
14 Sep - 32 hours?
21 Sep - 32 hours?
28 Sep - 32 hours?
5 Oct - 32 hours?
12 Oct - 32 hours?
19 Oct - 32 hours?
26 Oct - 50 hours?
2 Nov - 32 hours?

Work out the total number of hours they have worked.

There is one bank holiday: 31 Aug. If it occurs in a 0 hours week, I would be inclined to ignore it.

Statutory Minimum Holiday entitlement is 12.07% of time worked. So taking the total of the hours actually worked, calculate 12.07%.

So I think in the example above: 698 total hours. 12.07%=84.25 hours
Then add that to the total hours = 782.25 hours.
Then multiply by the hourly rate, so if £10 per hour, then £7,822.50
Then look at what has been paid over that time... deduct payments already made, which should then leave the remaining payment due for the last payslip.

You need to be able to show your nanny how the pay has been calculated, how the holiday has been added on to the pay (I am assuming they did not take off any days during term time as annual leave).

I hope this makes some sense.