Holidays and holiday pay
Most employees (subject to certain exceptions dealt with below), whether they are full-time, part-time, agency or casual workers, are entitled to take a minimum amount of paid holiday every year. This is called statutory holiday. The right to take statutory holiday applies no matter how long the employee has worked for the employer and, unless the employee is under school leaving age, no matter how old the employee is.
Statutory Holiday
As of From 1 October 2007, statutory holiday entitlement is 4.8 weeks’ paid holiday for every year which you work (an increase from 4 weeks previously). Employees who work part-time are entitled to the same holidays as full-time staff except that it is calculated on a pro-rata basis.
Please bear in mind that this is a minimum. So, whilst it is possible for a contract of employment to give the right to take more than the statutory amount of paid holiday it cannot give less. Any period of holiday over and above the the statutory amount of paid holiday is called contractual holiday and the law does not stipulate how much contractual holiday should be given nor whether it should be paid holiday or not.
Those not entitled to statutory holiday
Some employees are not entitled to statutory holiday. These include:
- members of the armed forces
- the police
- those working in the civil protection services, such as members of the fire and rescue service.
However, even though not entitled to statutory paid holiday, the contracts of employment of such employees will usually give them a contractual right to take holiday.
What a contract must say about holidays
An employee is entitled to receive a written statement about the terms and conditions of their employment within two months of the start of their employment and any employer who does not do so will be breaking the law. That statement should contain enough information for the employee to work out their entitlement to holidays and holiday pay. This requirement will be deemed to have been satisfied if the employee has been provided with a written contract of employment or a letter of engagement in which all of the terms are set out.
If an employee is going to work abroad for more than a month, and this is to take place within the first two months of starting work, then the employer must give a written statement to them before they go abroad.
Bank holidays and public holidays
An employee does not have an automatic right to take bank or public holidays off work, but if they are given they will count towards statutory holiday unless the contract of employment provides that they are in addition to statutory holidays.
Note however, that if an employee is a shop-worker in a large shop (over 280 square feet) then that employee must be given Christmas Day off, but it will depend upon the terms of the contract of employment as to whether this is paid leave or not.
Calculating holiday pay
An employee is entitled to paid holiday from the first day of their employment and there is no minimum period before this entitlement begins. The entitlement is to a week’ pay for each week of leave with a week’s pay calculated by reference to the type of work undertaken. Thus:
- for employees with fixed hours, holiday pay equals the amount due for a week’s work
- for employees who have variable hours and pay (for example they are on piece work, or depend upon bonuses or commissions) holiday pay will equal their average hourly rate multiplied by normal weekly working hours
- for shift workers holiday pay will be the average weekly hours for the preceding 12 weeks multiplied by their average hourly rate
Help with pay related issues
Whether you are an employer or an employee, if you have any issues relating to holiday entitlement or holiday pay you should contact employmentlawhelp so that we can advise you fully about the matter.
For more information, or if you have a specific problem with which you would like some help, either phone employmentlawhelp on 084 4804 4800, request a free, no-obligation call-back using the form to the right, or email us on advice@employmentlawhelp.co.uk and we will be more than happy to discuss with you the precise needs which you have.
