Cameron Miranda
In the UK, workers are entitled to 5.6 weeks of paid holiday per year, also known as statutory leave entitlement or annual leave. This includes full-time, part-time, term-time, and casual workers. The amount of holiday pay a worker receives is calculated based on their weekly pay and working pattern. If a worker's working hours do not vary, their holiday pay is calculated using their usual pay rate. For workers with irregular hours or part-year workers, holiday entitlement and pay are calculated differently and may be subject to specific rules. Employers must provide paid annual leave by law, and workers can take steps to resolve disputes if they believe their rights are not being met.
| Characteristics | Values |
|---|---|
| Legal entitlement | 5.6 weeks of paid holiday a year (also known as statutory leave entitlement or annual leave) |
| Who is entitled | Almost all workers, including full-time, part-time, term-time, casual, and irregular-hours workers |
| Calculation | Based on weekly pay; workers receive one-twelfth of the statutory entitlement on the first day of each month in the first year of employment |
| Proportionality | Part-time workers are entitled to the same proportion of holiday as full-time workers |
| Bank holidays | Employers can choose to include bank holidays as part of statutory annual leave |
| Carry-forward | Workers can carry forward holidays they have accrued but were unable to take due to sick leave or family leave |
| Payment | Workers should receive the same pay when on holiday as when they are at work |
| Disputes | Workers who think their rights are not being met can contact the Advisory, Conciliation and Arbitration Service (Acas) or make a claim to an employment tribunal |
| Recent changes | From 1 April 2024, holiday entitlement for irregular hours and part-year workers will be calculated as 12.07% of actual hours worked in a pay period |
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What You'll Learn
Annual leave entitlement
In the UK, almost all workers are legally entitled to 5.6 weeks of paid holiday a year, also known as statutory leave entitlement or annual leave. This entitlement is limited to 28 days. For example, if someone works 6 days a week, they are still only entitled to 28 days of paid holiday. This is because the 5.6 weeks of paid holiday is calculated based on the number of days worked per week. This includes full-time, part-time, term-time, and casual workers.
Workers accrue holiday leave from the day they start working. The amount of time off someone gets depends on their circumstances. To calculate how much holiday someone is entitled to, multiply the number of days they work each week by 5.6. For example, if someone works 3 days a week, they are entitled to 16.8 days of paid holiday a year (3 x 5.6). If a worker's employment ends before the end of the year, they are entitled to a proportion of a full year's holiday entitlement.
For workers with irregular hours or part-year workers, there are specific rules for calculating holiday entitlement and pay. An irregular-hours worker is someone whose hours in each pay period are wholly or mostly variable under the terms of their contract. For leave years beginning on or before 31 March 2024, the holiday entitlement for these workers does not need to be accrued based on hours worked, but can be estimated based on the average days or hours worked each week. From 1 January 2024, there is no change in how statutory holiday entitlement is accrued for workers who are not irregular hours or part-year workers.
From 1 April 2024, the holiday entitlement for irregular hours and part-year workers will be calculated as 12.07% of actual hours worked in a pay period. This new approach allows for annual leave entitlement to be pro-rated downwards to reflect hours actually worked. Employers who wish to use a rolled-up holiday pay system, where holiday pay is paid at the same time as basic pay, can do so lawfully for these workers from this date.
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Holiday pay calculation
In the UK, workers are entitled to 5.6 weeks of paid holiday each year, also known as statutory leave entitlement or annual leave. This can be calculated as 5.6 times the number of days they work per week. For example, someone working 5 days a week would be entitled to 28 days of paid holiday a year (5 x 5.6). This entitlement is not affected by part-time status, and part-time workers are still entitled to 5.6 weeks of paid holiday.
Holiday pay is calculated based on weekly pay. A week usually runs from Sunday to Saturday, and holiday pay is calculated from the last full week that was worked, which can end on or before the first day of the holiday. If a worker's pay is calculated over a different 7-day period, this can be used as the week for calculation. Holiday pay is calculated using the usual pay rate if the worker's hours do not vary. If a worker's hours vary, there are specific rules for calculating holiday pay.
For workers with irregular hours, where the number of hours worked in a pay period varies, holiday entitlement is calculated as 12.07% of the actual hours worked in a pay period for leave years beginning on or after 1 April 2024. This allows for annual leave entitlement to be pro-rated based on the hours worked. For leave years beginning on or before 31 March 2024, irregular-hours workers' leave entitlement does not need to be accrued based on hours worked, and a holiday entitlement calculator can be used to estimate their entitlement based on the average days or hours worked each week.
For part-year workers, who do not work for the entire year, holiday entitlement is calculated in the same way as for irregular-hours workers for leave years beginning on or after 1 April 2024. For leave years beginning on or before 31 March 2024, part-year workers' leave entitlement does not need to be based on hours worked, and a holiday entitlement calculator can be used.
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Paid time off for part-time workers
In the UK, part-time workers are entitled to 5.6 weeks of paid holiday each year, which equates to 28 days of paid holiday for those working 5 days a week. This is known as statutory leave entitlement or annual leave. The amount of paid holiday is pro-rated based on the number of days or hours worked per week, ensuring that part-time workers are not treated less favourably than full-time workers. For example, an individual working 3 days a week would be entitled to 16.8 days of paid holiday annually (3 x 5.6).
The holiday entitlement for part-time workers can be calculated using the holiday calculator provided by the UK government. This calculator takes into account the average days or hours worked each week, especially for those with irregular hours or part-year workers whose work patterns may vary. It is important to note that bank holidays are not required to be given as paid leave, but employers have the discretion to include them as part of the statutory annual leave.
Part-time workers accrue holiday entitlement from their first day of work. If a worker's employment ends before the completion of a full year, they are still entitled to a proportion of the annual holiday entitlement. For example, if an individual works for 26 weeks and accrues 14 days of holiday, they are entitled to that accrued amount.
Additionally, part-time workers should receive their regular pay while on holiday, just as they would during their regular working days. Holiday pay is typically calculated based on weekly pay, and the specific calculation method depends on the worker's working pattern. If a worker's hours are consistent, their holiday pay is determined by their usual pay rate. However, if a worker changes from full-time to part-time hours, their holiday entitlement should be adjusted accordingly from the date of the change, without affecting any previously accrued holiday time.
In terms of resolving disputes or gaining further clarification, part-time workers can refer to their employment contracts, consult with their manager or HR department, or seek free and impartial advice from the Advisory, Conciliation, and Arbitration Service (Acas). Acas provides guidance on holiday entitlement and pay matters, and workers can contact them through their helpline or textphone during business hours.
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Holiday pay for irregular hours workers
In the UK, employers must adhere to specific regulations regarding holiday pay, as outlined in the Working Time Regulations (WTR). These regulations ensure that holiday pay and entitlement policies are consistent with current legislation, particularly for workers with irregular hours. Irregular hours workers are those whose number of hours worked in a pay period frequently or consistently varies under their contract for that year. This often includes individuals on zero-hours, casual, or bank contracts.
Workers with irregular hours are legally entitled to a minimum of 5.6 weeks of paid annual leave, just like full-time employees. However, the calculation methods for entitlement and pay differ to account for their variable working hours. The calculation for holiday entitlement for irregular hours workers has been a significant area of focus for UK employers following changes to employment legislation.
To calculate the holiday entitlement for irregular hours workers, employers can use the 12.07% accrual method, which is based on the statutory minimum holiday entitlement of 5.6 weeks. For example, if an employee works 70 hours in a month, their holiday entitlement for that month will be 12.07% of 70 hours, rounded down to 8 hours since the part hour is less than 30 minutes. This calculation ensures that the worker accrues holiday on the last day of each pay period.
Additionally, irregular-hours workers must be paid at their 'normal' rate, which includes commission, regular overtime payments, and any payments related to length of service or professional qualifications. Bonus payments are typically excluded from the 'normal' rate. Rolled-up holiday pay, where holiday pay is included in an employee's regular wages instead of being paid separately when leave is taken, is now permitted for irregular-hours workers. This involves adding a 12.07% uplift to their regular pay in each payslip, reflecting the statutory entitlement of 5.6 weeks of holiday in proportion to the 46.4 working weeks in a year.
It is important to note that employers who fail to comply with holiday pay regulations for irregular-hours workers may face legal disputes and enforcement action. Workers who believe they have not received the correct holiday pay have the right to raise a grievance with their employer and, if unresolved, may escalate the issue to an employment tribunal.
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Legal rights and dispute resolution
In the UK, almost all workers are legally entitled to 5.6 weeks of paid holiday each year, also known as statutory leave entitlement or annual leave. This entitlement is limited to 28 days, and workers should receive a week's pay for each week of statutory leave that they take.
To calculate their holiday entitlement in days, workers can multiply the number of days they work each week by 5.6. For example, if someone works three days a week, they are entitled to 16.8 days of paid holiday annually (3 x 5.6). Workers can use the holiday entitlement calculator on the government website to estimate their leave.
Holiday pay is based on weekly pay and should be calculated from the last full week that the worker was on the job. Workers should receive the same pay when on holiday as when they are working. However, some employers may offer better holiday pay schemes.
If a worker believes their rights to leave and pay are not being met, they can contact the Advisory, Conciliation, and Arbitration Service (Acas) for free and impartial advice. Acas can provide guidance on general holiday pay issues and help resolve disputes. Workers can also refer to their written statement of employment particulars or check with their manager, HR, or employer to understand their holiday entitlement.
If a worker believes their holiday pay is incorrect, they should first check their contract. If the issue is not resolved, they may be able to make a claim to an employment tribunal. There are strict time limits for these claims, usually three months minus one day from the date of the most recent incorrect holiday payment.
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Frequently asked questions
In the UK, workers are entitled to 5.6 weeks of paid holiday per year, or 28 days. This is often referred to as statutory leave entitlement or annual leave.
Holiday pay is based on your weekly wage. A week usually runs from Sunday to Saturday. You can calculate your holiday pay based on the last full week that you worked.
Bank holidays do not have to be given as paid leave. Your employer may choose to include these as part of your statutory annual leave.
Yes, part-time workers are still entitled to 5.6 weeks of paid holiday, but this will be in proportion to the hours worked. Employers must ensure part-time workers are not treated less favourably than full-time workers.
You should check your employment contract and speak to your manager, HR, or employer. If this does not resolve the issue, you can contact Acas (Advisory, Conciliation and Arbitration Service) for free and impartial advice.
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