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Calculating holiday for zero hours employees

  • Member PM.Dip
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  • 194 posts
  • # 119014

Hi All,

Hope all is well and everyone is coping through these difficult times!

My question relates to calculating holiday for zero hours employees.  I am calculating their holiday allowance based on the 12.07% of actual hours worked.  When they request holiday (as a number of days) I calculate the number of hours by taking the total hours over the previous 52 weeks, dividing by 52 to get a weekly figure, dividing by 5 for a daily figure and then multiplying by the number of days taken.

My question is, if they have accumulated say 100 hrs for the year, how do I work out how many days this equates to?  Do I do the reverse calculation?  I have one employee who has accumlated 100.75 hrs which I have calculated as the equivalent of 12.5 days, but then another employee who has accumulated 80.75 hrs which I have calculated as the equivalent of 16 days, which doesn't seem right to me!

Any thoughts very welcome.

Pauline

  • Fellow PM.Dip
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  • 111 posts
  • # 119043

Hi Pauline

I have a client who has 2 staff on zero hours contracts. What we do is calculate the accrued holiday each month which shows on their payslip as an available balance. When they take holiday the client tells me how many hours to pay or tells me a lump sum to pay from the pot. 

I don't try and calculate an average because, as you've found, its a bit of a gamble and guess work. If you're only ever getting told their hours to pay each month its far easier to pass it back to the client for them to decide. Let them tell you how many hours holiday. You then avoid the yucky question from the employee who is asking how their holiday pay was calculated.

 

Victoria

  • Member PM.Dip
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  • 194 posts
  • # 119048

vik said:

Hi Pauline

I have a client who has 2 staff on zero hours contracts. What we do is calculate the accrued holiday each month which shows on their payslip as an available balance. When they take holiday the client tells me how many hours to pay or tells me a lump sum to pay from the pot. 

I don't try and calculate an average because, as you've found, its a bit of a gamble and guess work. If you're only ever getting told their hours to pay each month its far easier to pass it back to the client for them to decide. Let them tell you how many hours holiday. You then avoid the yucky question from the employee who is asking how their holiday pay was calculated.

 

Victoria


 Hi Victoria,

Many thanks for your reply.  I see what you are saying.  I think I need to sit down with the client and discuss how to handle this, either by hours or days as it is getting a bit muddled using both!

I've already sent out an email to the employees stating how their holidays are calculated and didn't get any complaints or queries.... :-)  I guess the employee who has accumulated 80.75 hrs which is equivalent to 16 days, this would not be 16 whole days, but 16 of her average hour days.  I think I will put the ball in the client's court :-)  Thank you.

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