Help me work out new employee’s annual leave/final pay please!

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Hello - I work in an administrative role for a very small organisation and could do with some help from someone with more experience in this side of things than I currently have.

We took on a new employee on 3 November. His contract was for 22.5 hours per week (3 days, Mon-Weds usually). We are just back from Xmas break this week, and he resigned yesterday. Not because we’re awful to work with, I promise! But because he realised he wanted to spend more time on his self-employed work. He was on a 3-month probation period. I believe he needs to give us a week’s notice so we are taking that as being this current week. Therefore his last day of employment will be Thursday 15 January.

Annual leave allowance for employees in Year 1 is 25 days + 10 days public holidays = 35 days per year. Pro-rata for this employee works out as 21 days per year (157.5 hours). Our annual leave year runs April - March. So his annual leave allowance this year would have covered 5 months Nov - March (65.6 hours). However, this has to include the office being closed over Christmas and New Year. Therefore he took 2 weeks (w/c 29 Dec and 5 Jan) - that’s 45 hours leave.

The salary is £32k pro-rata, so £19.2k for 3 days (7.5 hours per day).

How much annual leave does he owe us, and how much final pay do we owe him?

Thanks for any advice!

I think you need to remove the bank holidays from the equation unless the team usually work bank holidays.

In which case he has 112.5 hours for the year. Which means he has accrued 21.6 hours in 10 weeks. I think this is right. If you normally work bank holidays then that would be different.

So he owes 23.4 hours. I can't help on salary but would expect a payroll system to sort this if you plug in the info.

You don’t remove bank holidays for part time workers.

His annual entitlement is 0.6 x 35 =21
He has worked for 11 weeks, which is 21% of a year, so his entitlement is 4.5 days, rounded up to the nearest half day.

He has taken 6 days, so he owes you 1.5 days pay, which at a FTE salary of 32k is £184.62 (32k/260 week days x 1.5)

Of course, the payroll software! That should help. I’m chatting to our bookkeeper on Thursday about all this too. Thank you.

You need to run notice for a week, not just the working days. So you need to calculate on Sunday’s date.

only if the contract pro -rates them. If they are “taken as they fall” you have to give any that have occurred in full.

What you pay depends on his contract:
a) 25 days leave plus 10 BH
25 days leave x 7.5 hours = 187.5 hours / 37.5 x 22.5 = 112.5 hours pro rata for the year
112.5 hours /365 days x 74 days = 22.81 hours
BH falling in period = XD, BD, NYE, NYD(?) = 4 days x 7.5 = 30 hours pro rata/37.5 x 22.5 = 18 hours pro rata
22.81 + 18 = 40.81 hours or 40 hours 48 minutes
40h 48m - 45 hours = 4 hours 12 minutes owed. I would be generous and round down to 4 hours.

b) 35 days including BH.
35 days leave x 7.5 hours = 262.5 hours / 37.5 x 22.5 = 157.5 hours pro rata for the year
157.5 hours /365 days x 74 days =31 hours 56 minutes round to 32 hours.
32 hours - 45 hours = 13 hours owed.

I have assumed with 10 BH you are in Scotland not England so get NYD.