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Calculating holiday pay

7 replies

BookLovingNorthLondoner · 04/06/2022 18:36

I’m wondering if anyone can help me as I’m driving myself crazy trying to find an answer online.

How is holiday (hours not pay) accrued for staff who work variable hours per shift and per week? In the past it was done by multiplying the hours worked by 12.07%. However, from what I can see online, this is no longer the case.

Any help would be much appreciated.

OP posts:
Crazylazydayz · 04/06/2022 22:39

I would use annual hours to calculate a full years entitlement. If it then needed to be pro rated for a part year then I would divide by 365 and multiply by number of calendar days in the period.

BookLovingNorthLondoner · 05/06/2022 22:01

Thanks @Crazylazydayz What do you do if you don’t know annual hours though - they change week to week.

OP posts:
Crazylazydayz · 05/06/2022 22:47

This is difficult the 12.07% is still a valid option but you also need to do a comparison averaging over the previous 12 weeks. This is from a Court of Appeal ruling.

I think what you need to do is Add up the total hours you worked in the last 12 weeks and divide by 12 = average weekly hours x 5.6 weeks = yearly leave entitlement in hours divide by 52 and multiply by 12 weeks = hours leave due for those 12 weeks. This may not be necessary but if you have BH off, deduct any BH in the 12 week period falling on a normal working day when you didn’t work.

This is my best guess someone else with more knowledge may be able to advise.

Thankyoupeter · 08/06/2022 08:20

Here is our company policy. Don't know if it helps as it's clear as mud to me!

Calculating holiday pay
Crazylazydayz · 08/06/2022 08:54

That makes sense to me and is along the lines I suggested. Couple of questions:
Are you contracted or Zero hours?
What is the annual leave allowance (hours/days)?
Do you work Bank Holidays?
What are your average weekly hours (37.5?) over the last 12 weeks?
Do you have paid overtime?

BookLovingNorthLondoner · 08/06/2022 13:17

Crazylazydayz · 05/06/2022 22:47

This is difficult the 12.07% is still a valid option but you also need to do a comparison averaging over the previous 12 weeks. This is from a Court of Appeal ruling.

I think what you need to do is Add up the total hours you worked in the last 12 weeks and divide by 12 = average weekly hours x 5.6 weeks = yearly leave entitlement in hours divide by 52 and multiply by 12 weeks = hours leave due for those 12 weeks. This may not be necessary but if you have BH off, deduct any BH in the 12 week period falling on a normal working day when you didn’t work.

This is my best guess someone else with more knowledge may be able to advise.

This has answered it! Thank you!

OP posts:
Crazylazydayz · 08/06/2022 14:56

Glad to have helped

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