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Holiday entitlement for when you get different pay rates

  • Member PM.Dip
  • 29 posts
  • # 116950

Hi 

 

I was wondering if someone has came accross this problem.

 

How do you calcultate holiday entitlement for an employee who has 2 differnt typers of payr rate eg £8 per hour per day and £9 per hour per night ?

 

I would think you that calculatating the hours and then the total pay and then multiply by 12.07% as it is irregular working pattern

 

Any suggestions will be much appriciated 

 

Thank you

  • Payroll Agent
  • Practice Licence
  • 15 posts
  • # 116956

Hi Bedo,

 

Normally the holiday entitlement should be calculated on the terms of the contract of employment and/or the company handbook.

Failing that, the default position would be based on statutory minimum of the equivalent of 5.6 weeks per holiday year.  For irregular hours it would usually be calculated using the accrual based on 12.07% of the hours worked.

 

I would strongly suggest having a read of the ACAS guidance on holiday entitlement to make sure you are compliant. 

 

When it comes to paying the holiday pay, please bear in mind the calculation method from ACAS as it it a bit more complicated https://beta.acas.org.uk/calculating-holiday-pay 

 

Kevin

  • Member PM.Dip
  • 29 posts
  • # 116957

Hi Kevin

 

Thank you for the advise

 

Yes I did contact ACAS as I thought that this might be the best thing to do to comply and they provided me with their guidence (you can see them here if you need them in future as well http://www.acas.org.uk/media/pdf/r/c/Acas-guide-Holidays-and-holiday-pay.pdf)

 

The contract could be usefull but if it does not meet the minimum requirements I think we should go with ACAS advise while this is been put in more details.

 

Thanks again

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