How To Calculate Your Team’s Holiday Allowance
Minimum Holiday Entitlement
First things first, there is a minimum holiday entitlement specified by the UK government.
The annual leave allowance depends on a few different factors such as the number of days worked per week and if that a person is working regular or irregular hours.
For a full time worker (based on working 5 full days per week) the statutory holiday entitlement is 28 days.
(This is based on a minimum of 5.6 weeks paid annual leave per year).
An employer can choose whether bank and public holidays are included in that 28 day allowance or not.
In other words, there is no obligation for bank holidays to be given as paid leave. However, be aware that most companies do choose to offer time off over bank holidays in order to remain in step with their peers (and because everyone likes a little extra break!).
Part time workers receive less annual leave than full-time workers.
This is more complicated, as it depends on the amount of time a person works per week. To be absolutely sure you’re compliant, use a part-time holiday calculator.
This table is a helpful guide to pro-rata holiday calculations:
|Days worked per week||Holiday entitlement for a year (days)|
|5 or more||28|
Important Note: employers cannot round down. They should round up to the nearest half day.
The only situation where someone is absolutely not entitled to holiday pay is if they’re self employed.
In all other situations, a team member is entitled to holiday pay.
You’re able to check the status of employment on the government’s website.
The Slightly More Complicated Bits
How Much Annual Leave Should I Give My Team?
Just because there is a minimum holiday entitlement, it doesn’t mean you need to provide your team with the statutory limit.
The average annual leave amount across the 10,000 companies using CharlieHR to manage their time off and holiday is 25 days NOT including bank holidays.
So the average amount of holiday is 32 days per year.
This can be a bit of a nightmare. Use a holiday calculator if members of your team are working irregular hours throughout the working week.
The GOV.UK website provides an easy to use calculator here.
What If Someone Joins In The Middle Of The Year?
CharlieHR handles this calculation automatically and works out the annual holiday allowance for each new starter.
This is a feature that’s included in our free plan.
Learn More About CharlieHR
We provide simple, beautiful HR software used by over 10,000 small businesses across the UK.
Over the last two years, CharlieHR has successfully booked and tracked 150,000 days of annual leave. Members of the team are provided with a clear overview of where they’re at with their annual leave allowance. You can find out more here.