Do I need to calculate holiday entitlement for someone working on a zero contract?

Do I need to calculate holiday entitlement for someone working on a zero contract?

In short yes all workers are entitled to holiday pay.  Most workers are entitled to 5.6 weeks paid holiday per year (28 days).  Many employers include bank holidays as part of the statutory entitlement i.e.20 days plus bank holidays.

If you employ someone on a zero hour’s contracts or if you are the person responsible for aspects of HR in your company, then it’s important that you understand how annual leave and pay is calculated for these workers.

The statutory entitlement of 5.6 weeks or 28 days is equivalent to 12.07% of hours worked over a year. (52 weeks – 5.6 weeks = 46.4 weeks.   5.6 weeks / 46.4 x 100 = 12.07%)

To calculate holiday entitlement, for someone working on a zero contract hours, multiply the number of hours worked by 12.07%. For example:

160 hours worked X 12.07/100 = 19 hours of holiday entitlement earned.

Here are our two top tips

  1. Make sure the contract confirms basic terms, including pay, holiday and pay entitlements, notice and other terms which relate to the way work will it be managed in practice.
  2. Have a good system in place with regards to pay and holiday calculations, as it can be an administrative burden.
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