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Calculating a days holiday pay for casual workers Page Title Module
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  • Calculating a days holiday pay for casual workers

    Hello everybody,

    I hope someone can help me with this query.
    When calculating a days holiday pay, we normally take the pay for the last 12 weeks worked, divide by 12 to get an average, then divide by the number of days worked a week to get one days holiday pay entitlement, then multiply by the number of holiday days requested to work out the pay due.
    This works for people who work the same number of days every week, but my question is :
    how do you apply the above system to people whose working pattern varies from week to week, e.g week one 5 days, week two 1 day, etc. ?
    I have done some research, but I can only find out about working out a full weeks pay.

    I hope this makes sense, and that someone is able to point me in the right direction, such as an "offical" policy or similar!

    Many thanks for reading this, any help and advice gratefully recieved!

    Regards, Fozza.

  • #2
    How about calculating the total amount of the last 12 weeks and just dividing that through the number of days worked?

    I'm sorry, I used to work in payroll in a different country and we generally calculated it per hour instead.

    Also, I got not really a clue what the regulations are in the UK for this, so it might not fit in those.
    Daydreaming

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    • #3
      Hi, thanks for your help!
      It might make more sense to calculate the holiday entitlement in hours as we do get the hours worked per week for this clients employees, and as the days aren't consistent as well. I will give it a go and see what happens!
      Once again, thank you for your help!

      Cheers,
      Fozza

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      • #4
        Try this link it helps to work out holiday pay entitlement. I use it all the time.


        http://www.businesslink.gov.uk/bdotg...73858926&r.s=m

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        • #5
          Originally posted by Fozza View Post
          Hello everybody,

          I hope someone can help me with this query.
          When calculating a days holiday pay, we normally take the pay for the last 12 weeks worked, divide by 12 to get an average, then divide by the number of days worked a week to get one days holiday pay entitlement, then multiply by the number of holiday days requested to work out the pay due.
          This works for people who work the same number of days every week, but my question is :
          how do you apply the above system to people whose working pattern varies from week to week, e.g week one 5 days, week two 1 day, etc. ?
          I have done some research, but I can only find out about working out a full weeks pay.

          I hope this makes sense, and that someone is able to point me in the right direction, such as an "offical" policy or similar!

          Many thanks for reading this, any help and advice gratefully recieved!

          Regards, Fozza.
          I think it's always an average of the last 12 weeks.
          I think that means a savvy employee will ask for holiday after they've had a busy period at work!!
          Professional Tea Consumption Technician
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          • #6
            Holiday pay for casual workers

            Hi,

            In order to fully understand the rules you have to look at the Working Time Regulations 1998 for aspects of the holiday payment and entitlement but the Employment Rights Act 1996 for the definition of a weeks pay.

            What has been said is right, generally if the pay of the person varies then any assessment of the amount due will be averaged out over 12 weeks, however the problem is how to establish the number of hours to pay.

            I am assuming that by referring to the person as casual you mean they have no normal working hours and the contract is silent on the subject of hours per week. If this is so then you merely identify the 12 weeks period, the 12 weeks prior to the calculation date which is the end of the week prior to the taking of holiday.

            If there are contracted hours then you need to vary the calculation somewhat to account for the contractual entitlement and then create an average for the balance.

            Payrollpro

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