Background for context: I have worked freelance for the last 10 years, and a few years ago I began working for a company 2 short days (10 hours a week) on a consulting basis - I would invoice at the end of each month only for the hours I had worked.
There was a mutual discussion earlier this year surrounding increasing my hours, and I suggested increasing to 2 full days (16 hours a week), but asked if I could do this on an employed basis, as I'd been struggling during the months where I took time off with the irregular income. I understood that my hourly rate would be reduced to account for extra taxes, pensions contributions and holiday entitlement the company would have to pay, which was fine.
My usual working days were Mondays and Thursdays, so I was offered two remuneration packages; one lower value that excluded 5 Mondays per year due to the office being closed on bank holidays, and another of a higher value on the basis that I changed my usual working days to not include Mondays. I asked as a compromise if I could continue working my Mondays during a normal week (as I already had child and dog care in place for those days), but during bank holidays where the office would be closed on the Monday, I would work a different day that week, and this arrangement was agreed and written in to my employment contract.
The company offers 25 days plus bank holidays to full time employees, and so it also says in my contract that I'm entitled to 10 days of annual leave, "plus bank holidays (pro-rata for part time employment)". However, there seems to be some confusion now in relation to these 5 bank holidays and how they affect the number of days leave I'm entitled to.
When calculating my entitlement, my manager is deducting 5 days from the standard bank holiday allowance, and then applying pro-rata, which is leaving me with 2/5ths of 3 days (1.2 days, rounded up to 1.5) instead of 2/5ths of 8 days. He says the bank holidays were sorted separately, and I get paid extra for them, which is why they are taken off first. I'm not sure this is correct - at the time the lower value package was presented more as a reduction for NOT working the Mondays, rather than the other way around. I asked him to clarify - if I'm working 2 days per week, every week, do I not accrue leave entitlement in line with this? I should note that there are no other part time employees at the company, so there is no policy in place surrounding this.
One final bit of info - my manager is also a friend of 20+ years, and is one of three directors at the company, so I don't believe he is trying to short change me - we get on very well both in and out of work and I feel comfortable approaching him about this - I just think he has become genuinely confused with the initial discussions around bank holiday days and I just wanted to gain some perspective from anyone who has worked in HR and has experience with part time employees and how leave entitlement should be calculated? As it stands, he thinks I should have 11.2 days per year (rounded up to 11.5) and I believe I'm entitled to 13.2 days (which would ideally be rounded up to 13.5).