So zero-hours contract workers had their holiday entitlement calculated based on 12.07% of the hours they worked each year.įor example, if a zero-hours contracted employee had worked 15 hours each week, then the holiday entitlement would equate to 15 x 12.07% = 1.8 hours.
If you then take that 5.6 weeks’ holiday and divide it by 46.4, it leaves us with a figure of 12.07%. Less than the 5.6 weeks’ annual statutory holiday entitlement, employees must work for 46.4 weeks of the year. The percentage method is based on giving entitlement on a pro-rata basis. Before that, “the Percentage Method” was widely accepted as being the best way to calculate entitlement, and it was even recommended by sector bodies including The Advisory, Conciliation and Arbitration Service (ACAS). The current method of calculating zero-hours contract workers holiday entitlement came into effect in late 2022 after the Brazel v Harpur Trust case. Using this calculation ensures they still get 5.6 weeks’ holiday, but this is based on their contracted hours, so that they don’t appear to be treated more favourably than a full-time worker. To make things a little easier, we have a great holiday entitlement calculator you can use. So the calculation is their rate of FTE multiplied by 28 (the number of days that a full-time worker would receive). The number of days holiday that a zero-hours contract worker should be given will depend on the number of days or hours that they work each week, calculated as 5.6 of their normal working weeks.įor example, if they work two days a week (0.4 of FTE), they are entitled to 11.2 days’ holiday. Therefore, this workers version of 5.6 weeks holiday will be different from a full-time worker. Zero-hours contract employees are also entitled to 5.6 weeks of annual statutory holiday, but the days or hours that this equates to will depend on the amount that they work per week.Ī zero-hours contract employee will work less than the full-time equivalent (FTE) hours in a week. Employees on fixed-term contracts, or who commence working with you part way through the holiday year, will accrue leave monthly in advance, and they’ll do so at the rate of 1/12 th of their annual entitlement each month. It’s up to you whether you include bank holidays in these 28 days.Įmployees start to accrue leave as soon as they start working for you.
ZERO HOUR CONSOLE CALCULATOR HOW TO
How is it calculated? It’s quite simple! How to Calculate Holiday Entitlement for Zero-Hours Contract Employeesįor full-time employees who work five days a week, the 5.6 weeks of annual statutory holiday entitlement equates to 28 days a year. So if you want to calculate holiday pay and entitlement for your zero-hours contract employees, you’re going to have to do a separate calculation for each individual employee. Their specific pay and entitlement is calculated based on the number of hours they work. In fact, breaks in their working can even affect the sort of rights that accrue with time. Zero-hours contract employees do not have the same legal rights as employees on other contracts during breaks in their working. These rights apply so long as they are working. This means that they’re also legally entitled to a week’s pay for each week of statutory leave they take. Like most workers, zero-hours contract employees are legally entitled to 5.6 weeks of paid holiday a year. In this post, we’ll explain how to calculate holiday pay and entitlement for zero-hours contract employees.
But what if an employee’s technically not contracted to work any hours? What sort of statutory rights do zero-hours contract employees have? Holiday pay and entitlement are usually calculated based on the number of hours an employee works in a given period of time.
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