Search Doyle Clayton Search. For April - March this would mean that your employees would only receive 26 days holiday, which is obviously below the statutory minimum entitlement.
You would therefore need to give them an additional two days paid holiday. Again your employees would only receive 26 days holiday for April March as there are only six bank holidays.
You would therefore need to give your employees an additional two days paid holiday to ensure they receive their statutory minimum entitlement. However, for April — March you could choose not to give employees two of the ten bank holidays there is no automatic right to time off on a bank holiday. However, unless they agree otherwise, you would not be able to deduct these from the 20 day holiday entitlement as the contract says that they are entitled to 20 days holiday.
You would instead have to get them to work two bank holidays, which may not be practical if the office is closed and certainly will not be popular. The result of this is the same as point 2 above. The Law provides for a minimum of two weeks paid holiday, or a pro-rata amount where employees do not work a full year. Employers may wish to consider a zero hours or a variable hours written statement for such employees.
NB: Changes to the legislation were introduced from 1st September in respect of removing the 8 hour threshold for the purposes of calculating length of service and the right to claim for unfair dismissal.
These changes are likely to mean that people working under zero hour contracts are employees and therefore will receive the same rights as all other employees. However this is likely to only be determined by the Tribunal. While it is simple to calculate holiday pay for those who have regular contracted working hours and regular pay rates, it is more difficult to calculate holiday pay when either working hours or rates of pay or both vary from week to week.
The Law Articles 13, 14 and Schedule 1 details the calculations that need to be made using 52 week averages in order to determine "normal" hours and "normal" pay rates but some employers see this as administratively burdensome.
As an alternative, employers may wish to consider the option of providing such employees with "rolled-up holiday pay". This facility is recognised by the Employment Forum in paragraph 1. That is, holiday pay can be paid each week or month, allowing staff to take a break from work, possibly at the end of their contract or assignment, in the knowledge that they have already been paid any holiday pay that is due to them.
To calculate this sum, it is necessary to know the value of the minimum statutory annual holiday entitlement i. While the hours worked each week may be variable, for the sake of this example we need to imagine the following. You might want to explore whether changing the wording in the contracts would help avoid this problem going forward.
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