As the Summer holidays approach, it may be worth checking how much holiday pay you are entitled to. The Law in this area has changed recently. Normally a full time employee (working 5 days per week) is entitled to 28 days paid holiday per year. This is calculated by multiplying the normal working week (5 days) by 5.6 – i.e.5 x 5.6 = 28.
If you work part time, it is the same calculation though on a pro rata basis. e.g a worker working 2 days per week would be entitled to 11.2 days holiday per year (2 x 5.6= 11.2).
The level of pay is based on the kind of hours an employee usually works and how they are paid for those hours..
For those that work shifts or have fixed hours (full or part time), they will receive a weeks holiday pay that equals that average number of weekly fixed hours that a worker has done in the previous 12 weeks, at their average hourly rate.
For casual workers who have no fixed hours, holiday pay is calculated on the basis of the average pay that a worker received over the previous 12 weeks that the worker was paid for. This means that any weeks where a worker did not work, they should be ignored and you should count back a further week.
However, The Working Time Directive has been changed and now states that holiday pay entitlement should take overtime pay into account. Therefore, if you have been working overtime as part of your ‘normal pay’ they the holiday pay which you receive should be at the same level.
At Speedy, our bespoke timesheet system, accurately records hours worked, whether standard or overtime, and calculates the correct level of pay both for worked time and for holidays.