What holiday entitlement do your employees have? - Palmers Solicitors
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What holiday entitlement do your employees have?

What holiday entitlement do your employees have?

As the festive season approaches, we are approaching the end of the holiday year for many employees – and a time when many are looking to book time away from the office.

While we understand that this can be a busy time of year, it is important that you understand your employees’ holiday entitlements and allow them to take the holiday days to which they are entitled.

Failing to do so could result in penalties, as well as poor staff satisfaction.

For those earning commission or regular overtime, the payment made to employees for holiday must be considered as it is not straight forward. Please contact us for further advice on this.

Basic entitlement

If you are an employer, most of your employees will be classed as workers (if they have a contract with you and you pay them) and will therefore be entitled to 5.6 weeks of paid holiday per year as a minimum.

For those who work ‘traditional’ hours – i.e. they work a five-day week, statutory leave entitlement is 28 days or more of paid leave per year, although many employers now offer more.

This can, for example, be eight bank holidays and 20 days (four weeks) of holiday.

However, if you offer additional holiday allowances within an employee’s contract, you must allow them to take this holiday, not simply their statutory entitlement.

Part-time and irregular workers

Part-time workers are entitled to 5.6 weeks’ leave, pro-rated to the number of days that they work. For example, if someone works two days per week, they are entitled to 2 x 5.6 days, which equals 11.2 days.

Changes to the Working Time Regulations earlier this year also amended the way in which holiday entitlement is calculated for part-year and irregular hours workers.

Holiday entitlement is calculated at 12.07 per cent of the hours they work in a pay period, paid either in the month in which it is taken or spread evenly across each pay period.

Refusing leave

Taking leave can put additional strain on busy teams, so we understand that it is sometimes necessary for employers to decline leave requests.

You must give the employee at least the same notice as the time they wish to take off. For example, if an employee asks for a week off, you must refuse the leave at least a week ahead of the date on which they wish to start their leave.

If you do not, they will be entitled to take the leave and be paid for it.

Additionally, you must give employees the opportunity to take their full leave and pay them appropriately for that leave taking account of regular overtime for example.

If you repeatedly refuse leave to the point that employees are not able to take their entitlement, you may find yourself subject to grievances or an Employment Tribunal, if the situation escalates.

For advice on your employees’ holiday entitlement or their pay entitlement when taking holiday, please contact us.