Holiday Pay

[jesmond]

have been asked this and being honest when I say I haven't a clue. how is holiday pay worked out when contract says 1/12. I presumed it was over last 12 weeks worked but how do you get to the final figure, so what is the 1 actually mean, hope this makes sense, tia

[Prudie]

I think we need more information such as what kind of contract (permanent, part-time, temporary, hours worked etc) but straight off 1/12 would suggest to me 1 month holiday pay per 12 months worked but that may be wrong.

[jesmond]

sorry, she is on zero hours for an agency so not set days/hours

[Buenchico]

Workers are entitled to 5.6 weeks paid holiday per year (capped at 28 days, so people who work 6 days per week don't get any more holifday than those who only work for 5 days).

The rate of pay to be paid during those holiday periods must be the same as the employee's usual rate of pay. Where an employee works irregular hours (or otherwise gets a varying rate of pay, such as through the inclusion of bonuses), the rate of pay is calculated by totalling the pay from the past 12 paid weeks (which might not necessarily be consecutive) and dividing by 12 - thus giving 1/12 (one twelth) of the total.

[jesmond]

so are you saying its pay rather than hours worked buenchico?

[fiction-factory]

Yes Buenchico is saying that- it's to allow for things like pay rises during the 12 week period

[Buenchico]

>>> so are you saying its pay rather than hours worked buenchico?

The only calculation involving 1/12 as a relevant fraction that I can think of is the one I've cited above (i.e. relating to the rate of pay during paid holiday periods).

The number of hours holiday that a casual worker must be paid for is 12.07% of the number of hours worked. So someone who works an 8 hour shift accrues 12.07% x 8 hours ( = 58 mins) holiday entitlement. (So that's roughly one hour of paid holiday entitlement for each full working day).