How Do Holiday Entitlements Work for Part-Time Workers?
As an employer in the UK, it is crucial you understand how holiday entitlement works for part-time workers, to ensure compliance with employment laws and to create a fair and inclusive work environment within your team.
In the UK, the statutory holiday allowance represents the minimum number of days off an employee is entitled to each year. For full-time employees working 5 days a week, the statutory number is 5.6 weeks including public holidays - or 28 days.
However, for part-time workers, this entitlement is pro-rated based on the type of employment contract they’re on and how much they work in a week.
There are two main types of employment status in the UK: employees and workers. Although often used interchangeably, these terms carry differences in terms of employment rights - employees benefit from the highest level of employment protection, while workers only have limited rights.
Typical examples of these two employment statuses can be:
- Part-time employees: a retail assistant or marketing manager permanently employed on a 25-hour/week contract.
- Part-time worker: a delivery driver on a zero-hour contract, or a customer support agent working irregular hours.
Pro-rata holiday entitlement will depend on the employment status of the individual. Once you’ve established which status applies, you can work out pro-rata holiday entitlements.
Bank Holiday Entitlement for Part-Time Workers
Are Bank Holidays Included in Annual Leave?
Bank holidays are included as part of a part-time employee’s and worker’s holiday entitlement.
For part-time employees, this will be based off the statutory holiday entitlement for full-time employees, which include bank holidays (28 days per year).
Do You Have to Give Employees Time Off for Bank Holidays?
As an employer, you do not have to give employees time off for bank holidays. The same goes for part-time employees - although bank holidays will be included into their pro-rata annual holiday allowance.
What If A Bank Holiday Falls On A Day The Employee Usually Works?
If a bank holiday falls on a day a part-time employee or worker usually works, it is up to the employer and the individual to agree whether this day should be worked or not. There is not legal obligation for the employee/worker to take it as time-off or to work.
How Do You Work Out Pro-rata Holiday Entitlements?
As mentioned above, part-time holiday allowances are calculated based on the individual’s employment status and the number of days or hours they work in a week. Let’s delve into how to exactly calculate these entitlements.
The method used to work out pro-rata holiday entitlement for part-time will be different for workers and employees:
- employees will get a pro-rated amount of paid holiday entitlement based on a full-time employee’s holiday entitlement, ie 28 days per year.
- workers, who are usually paid by the hour, get a holiday allowance and pay based on how many hours they’ve worked.
Calculating Holiday Entitlement for Part-Time Employees
Calculating the holiday entitlement of a part-time employee is the easiest of the two scenarios. We need to look at the number of days the employee is typically contracted to work in a week and then pro-rate this amount based on a full-time, 5-day, entitlement equivalent.
As a reminder, a full-time employee who typically works 5 days a week will be entitled to 5.6 weeks of paid holiday per year, which comes to 28 days including bank holidays.
The pro-rated holiday entitlement for a part-time employee will be as follows:
*** whenever a calculation ends on a decimal that is not .5, the entitlement is rounded up to the nearest half day. This is because legally you cannot round down a holiday entitlement.
How to work out Holiday Entitlement for Workers on Hourly or Shift Contracts
Working out holiday entitlements for part-time workers is a little different. However, workers are still entitled to holiday pay, which is also based off the full-time equivalent of 5.6 weeks' paid holiday as a minimum.
The way holiday entitlements are calculated for workers on zero-hour contracts, shifts or hourly contracts will be based on the average number of hours they’ve worked in a week in the last 52 weeks.
If the worker has been with the business for less than 52 weeks, just work out this average with the number of weeks they’ve worked to date.
Part Time Employees And Hourly Workers At Onfolk
Part-time employees and casual workers have become an increasingly popular option for both employers and individuals. While providing more flexibility for both, it also means that calculating crucial elements such as holiday entitlements and holiday pay has also increased in complexity for employers.
Onfolk is an all-in-one payroll and HR solution targeted as flexible workforces. Part-time and hourly holiday entitlements, as well as holiday pay are automatically calculated in our system.
If you’re interested in more info, get in touch.
How Do Holiday Entitlements Work for Part-Time Workers?
As an employer in the UK, it is crucial you understand how holiday entitlement works for part-time workers, to ensure compliance with employment laws and to create a fair and inclusive work environment within your team.
In the UK, the statutory holiday allowance represents the minimum number of days off an employee is entitled to each year. For full-time employees working 5 days a week, the statutory number is 5.6 weeks including public holidays - or 28 days.
However, for part-time workers, this entitlement is pro-rated based on the type of employment contract they’re on and how much they work in a week.
There are two main types of employment status in the UK: employees and workers. Although often used interchangeably, these terms carry differences in terms of employment rights - employees benefit from the highest level of employment protection, while workers only have limited rights.
Typical examples of these two employment statuses can be:
- Part-time employees: a retail assistant or marketing manager permanently employed on a 25-hour/week contract.
- Part-time worker: a delivery driver on a zero-hour contract, or a customer support agent working irregular hours.
Pro-rata holiday entitlement will depend on the employment status of the individual. Once you’ve established which status applies, you can work out pro-rata holiday entitlements.
Bank Holiday Entitlement for Part-Time Workers
Are Bank Holidays Included in Annual Leave?
Bank holidays are included as part of a part-time employee’s and worker’s holiday entitlement.
For part-time employees, this will be based off the statutory holiday entitlement for full-time employees, which include bank holidays (28 days per year).
Do You Have to Give Employees Time Off for Bank Holidays?
As an employer, you do not have to give employees time off for bank holidays. The same goes for part-time employees - although bank holidays will be included into their pro-rata annual holiday allowance.
What If A Bank Holiday Falls On A Day The Employee Usually Works?
If a bank holiday falls on a day a part-time employee or worker usually works, it is up to the employer and the individual to agree whether this day should be worked or not. There is not legal obligation for the employee/worker to take it as time-off or to work.
How Do You Work Out Pro-rata Holiday Entitlements?
As mentioned above, part-time holiday allowances are calculated based on the individual’s employment status and the number of days or hours they work in a week. Let’s delve into how to exactly calculate these entitlements.
The method used to work out pro-rata holiday entitlement for part-time will be different for workers and employees:
- employees will get a pro-rated amount of paid holiday entitlement based on a full-time employee’s holiday entitlement, ie 28 days per year.
- workers, who are usually paid by the hour, get a holiday allowance and pay based on how many hours they’ve worked.
Calculating Holiday Entitlement for Part-Time Employees
Calculating the holiday entitlement of a part-time employee is the easiest of the two scenarios. We need to look at the number of days the employee is typically contracted to work in a week and then pro-rate this amount based on a full-time, 5-day, entitlement equivalent.
As a reminder, a full-time employee who typically works 5 days a week will be entitled to 5.6 weeks of paid holiday per year, which comes to 28 days including bank holidays.
The pro-rated holiday entitlement for a part-time employee will be as follows:
*** whenever a calculation ends on a decimal that is not .5, the entitlement is rounded up to the nearest half day. This is because legally you cannot round down a holiday entitlement.
How to work out Holiday Entitlement for Workers on Hourly or Shift Contracts
Working out holiday entitlements for part-time workers is a little different. However, workers are still entitled to holiday pay, which is also based off the full-time equivalent of 5.6 weeks' paid holiday as a minimum.
The way holiday entitlements are calculated for workers on zero-hour contracts, shifts or hourly contracts will be based on the average number of hours they’ve worked in a week in the last 52 weeks.
If the worker has been with the business for less than 52 weeks, just work out this average with the number of weeks they’ve worked to date.
Part Time Employees And Hourly Workers At Onfolk
Part-time employees and casual workers have become an increasingly popular option for both employers and individuals. While providing more flexibility for both, it also means that calculating crucial elements such as holiday entitlements and holiday pay has also increased in complexity for employers.
Onfolk is an all-in-one payroll and HR solution targeted as flexible workforces. Part-time and hourly holiday entitlements, as well as holiday pay are automatically calculated in our system.
If you’re interested in more info, get in touch.
