28 days is the legal minimum entitlement to statutory holiday pay
Bit of an ouch for most employers, but did you know employers can withhold 8 days a year back from employees to cover bank holidays and public holidays?
If your business closes on bank holiday Mondays, Easter or Christmas it is within your rights to withhold 8 days holiday from your employees to cover this closure.
Statutory holidays are capped at 28 days. Employees that work 6 or 7 days a week still get 28 days.
How much statutory holiday pay your employee is entitled to depends purely on the amount of days they are contracted to work
We would suggest that this is outlined in the employee’s contract of employment
Employers cannot offer less than the statutory limit of 5.6 weeks, if it is your intention as the employer to withhold 8 days to cover bank holiday closures make sure you employee knows this from the start.
Calculating Holiday pay
For a basic calculation of holiday pay multiply the number of days worked in a week by 5.6.
Remember the statutory entitlement is capped at 28 days, employee’s working 6 or 7 days a week still only get 28 days.
- 5 days x 5.6 weeks = 28 days.
- 4 days x 5.6 weeks = 22.4 days
- 3 days x 5.6 weeks = 16.8 days
- 2 days x 5.6 weeks = 11.2 days
- 1 day x 5.6 weeks = 5.6 days
Holidays on Accrual
Employing staff who work irregular hours or shift patterns, use the accrual system to make the calculation easier
The accrual system calculates a percentage (12.07%) of the employee’s gross wage to give the amount of holiday hours due in cash.
- This week the employee earns £150 gross wage the holiday accrued would be £18.11
- The following week the employee earns £70 gross the holiday accrued would be £8.45
- The week after the employee wants to take a holiday they would have accrued £26.56
We offer the accrual system free of charge in our payroll service.