Holiday calculation - who is correct?

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We have a new manager started who calculates holiday different to me. He says I have been doing it wrong.
We offer 5 weeks holiday (plus BH) pro rata for part timers.
For example for a staff member who works 27 hrs pw over 3 days

My calculation is 27 x 5weeks = 135 hours annual leave. Plus BH
His calculation is that three days is 60% of the working week (each day mon-Fri is 20% therefore 3 days = 60%). So 60% of 37.5 (FT hours) is 22.5 x 5 weeks =112.50 hours

Is he correct?

Employee actually works 0.72 FTE (27/37.5)

You are correct in your calculations.

I think he is correct

FT = 33 or 247.5 hours

27/37.5 = 0.72

178.2 hours leave, with BH to be deducted from working days.

Depends whether your organisation’s policy is days or hours.

You are correct. I work 21 hours and that's how mine is calculated.

BH should be pro-rata too, otherwise the PT employee is being paid for more BH than full time employees.

Add leave and BH in holiday year together divide by 5 and multiply by 3.

The bank holidays should be pro rata too and employee has to book them off via their AL allowance for any BH that fall on a working day

Does staff member work 27 hours or 22.5 hours? What are full time hours?

He can’t calculate it in hours if he is assuming an incorrect number of hours per day. He could say employee gets 5 weeks x 3 days = 15 days holiday, and each of those days is (27/3=) 9 hours. So 135 hours. He can’t multiply the three days by a lesser amount of hours than are worked per day.

It should be done by the pro rated hours per week which is the 27/37.5, which is 72%. And employee needs to use 9 of those hours to take a days leave, not the usual 7.5.
And the 72% needs to be applied to the number of bank holiday hours as well.

What are fulltime hours?

Well he's clearly wrong as 27 hours is not 60% of 37.5 hours.
The person is working longer days than the average working week employee would, so his calculation is wrong.

It should be worked out on hours not days as 27 hours out of 37.5 for full time is more than 60%.

Also as other pp say the BH should also be pro rata. Ie you get 72% of BH in hours. You may need to use more or less than this actually taking the bank hols depending on what days of the week you usually work.

Yes that’s correct. So if full time, including bh, they get 6.6 weeks, this should translate to pt.

6.6 weeks, at 3 x 9 hour days is 178.2 hours or 19.8 days, it just depends if working days are equal or not if you take it hourly or daily.

BH are deducted from your working days only.

27/37.5 is .72 full time equivalent.

5 weeks of leave at 37.5 hours would get 187.5 hours.
5 weeks for a .72fte employee would be 135 hours

bank holidays would get paid out at 7.5 hours or 5.4 hours.

your new manager doesn’t understand basic math and is going to get the company in trouble very quickly. Hopefully you have an hr department who can fix this situation.

The employee works 27hours per week but different shifts (hours) each day she works ( 3 days).
For those asking - Yes we do pro rata BH but thought it would be too complicated to add it into this query.

This is how I have always done it but new manager (same level as me) says it's wrong. We don't have an HR dept / that's always fallen under my remit and I do check against the government guidance.
But as he's so certain I'm wrong I wanted to check.

You are right. It should be worked out pro rata in hours not days to make sure it’s fair and that people who work longer or shorter days aren’t at a disadvantage.

Same for bank holidays.

You can check the govt website and show your manager the calculation if they are arguing. The govt calculation says 152 hours

Yeah, your boss is wrong. The employee is not 0.6FTE. Is he a bit thick?!

https://www.gov.uk/calculate-your-holiday-entitlement

If a staff member is working different hours each day to a "standard" day, then it's always best to calculate in hours.

27 hours over 3 days is 9 hours per day. Unless the typical working week is 45 hours, then your managers calculation is incorrect.

I wouldn't calculate it your way either though. I'd do 27/37.5 = 0.72 - proportion of full time that she works. Full time holiday in hours is 37.5 x 5 = 187.5. So her proportion is 0.72 x 187.5 = 135

Ie you are right with your end result. Does he realise this staff member works more hours per day than everyone else? So using 3 days out of 5 is wrong - that would be 22.5 hours worked per week not 27.

Your manager is assuming colleague works 7.5 hours per day when she is there. She seems to work longer than that though - does she?

Her entitlement will also change year by year depending on what days she works and whether those include BHs....

Sort of … as she works .72 FTE then she’s entitled to .72 of bank holidays.

The way most organisations do this is to work out how many bank holiday hours an employee is entitled to, then the number of actual working hours for days that fall on bank holidays are deducted and then any remaining hours are added to her annual leave balance.

I work compressed so because I work a longer day to compress my full time week into 4 days. As most of the bank holidays fall on my working days I actually see a deduction to my annual leave once bank holidays are accounted for.

Should explain when I say deduction to my annual leave - I mean to the hours I can choose when to book. I get exactly the same number of hours of annual leave and bank holiday as every other full time staff member, it’s just that I use more hours on a bank holiday as I work 9 hours a day instead of 7.5

That’s why if anyone works anything other than the company standard 9-5 M-F (or whatever their standard week is) annual leave and bank holiday entitlement needs to be worked out in hours.