Calcuating holiday pay when leaving and starting part way through the year!

Calcuating holiday pay when leaving and...

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Hi There, 

I'm currently having trouble calculating holiday for an employee who has started and is leaving part way through the year. 

The contract states, 'your paid holiday entitlement is 30 days per annum pro rata to days worked which includes the eight statutory bank holidays. The holiday year runs from 1st Jan - 31st Dec. Holiday entitlement will accrue from day to day. You will accrue holidays on the basis of 1/52nd of annual entitlement for each week worked.'

The employee is full time (40 hours a week)  and on a salary of £25,000. She started on 14th March 2013 and her last working day will be 5th September 2013. She has taken 4 days annual leave so far. 

So far I have managed to confuse myself on how much holiday this employee was entitled to, let alone how much I need to calculate for her leave!

Can anyone help?

Disgruntled OM! 

Replies (3)

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By tom123
27th Aug 2013 19:17

Well,

If we assume your holiday week starts on a Monday, her first Monday was 18/03/2013.

She leaves on Thursday 5 Sept, so her last holiday week ended Sunday 01/09/2013

I make that 24 weeks entitlement = equals 24/52 * 30 = 13.85 days = 13.5

(up to you how you usually do rounding - I usually round down to nearest half)

Deduct the 4 days taken (are you including bank holidays in that, or in addition)

=9.5 to pay.

 

Divide salary by 260 and multiply by 9.5.

PS I accrue holiday per month worked, rather than per week.

Interesting what you are doing with the bank holidays.

I just tend to pay those when they occur, rather than accruing them in. If someone starts today and finishes on Christmas eve they would get no bank holiday pay from us - whereas in effect you are paying them part of the BH.

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Replying to atleastisoundknowledgable...:
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By tanamon
27th Aug 2013 21:24

Thank you so much for explaining this to me, not sure that anyone knows why it works this way!

The 4 days she has taken doesn't include the bank holidays since she started. Would that mean its 4.5 days to pay?

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Routemaster image
By tom123
27th Aug 2013 22:06

Yes, if there have been five bank holidays since she started

Yes, if she has had five bank holidays.

(2 at Easter, one in August, 2 in May?)

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