Holiday entitlement calculations for employers

Calculating holiday entitlement by days worked

If an employee works over five days a week, they are not legally entitled to more than 5.6 weeks/28 days holiday, as this is the cap.

However, you can offer contractual leave above this amount if you wish.

 

Days worked per week Leave entitlement
0.5 2.8 days
1 5.6 days
1.5 8.4 days
2 11.2 days
2.5 14 days
3 16.8 days
3.5 19.6 days
4 22.4 days
4.5 25.2 days
5 28 days

 

Holiday entitlement when an employee starts part way through a leave year

If an employee starts working for you part way through a leave year, calculate their entitlement above, divide the number by twelve and multiply by the number of months left in the leave year. i.e.

(28 days ÷12 months) x 10 months = 23.3 days 

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Holiday pay when an employee leaves part way through a leave year

If an employee leaves your employment part way through a year, you must pay them for any leave accrued in that leave year.

To calculate this, multiply their annual entitlement in days by a proportion of the leave year expired, and then subtract the number of days taken.

i.e. (28 days x 0.5 years) – 5 days = 9 days 

Note: Calculations may result in part days. 

You cannot legally round this down to the nearest day, but you could choose to round it up. Or, alternatively, offer to pay the employee for the time, or let them start work late or finish early.

For guidance on holiday entitlement for part-time workers, those on maternity leave, and carrying over leave into a new year, read this article.

Members of the Forum can call 01565 626001 to speak to our Membership Team for help with calculating holiday entitlement. Not already a member? Find out more about how we can help you manage HR in your business.