Are you trying to figure out how to calculate annual leave entitlement for your employees? Or are you wondering how to calculate leave days for yourself?
It's a great question, and we're here to help! Everyone needs a break, and in today's world, employees shouldn't be afraid to take time off, in fact they should be encouraged to do so! Whether you love your job or just need a breather, annual leave is essential.
This guide will walk you through how to calculate annual leave for different types of employment, ensuring both companies and workers understand their rights and entitlements.
Note: For an interactive version of the formulas in this article, head straight over to our UK statutory holiday allowance calculator, as shown below.
Calculate annual leave entitlement with this formula
For full-time employees working a standard 5 days a week, you can use this formula:
[The number of days a week you work] x 5.6 = annual leave entitlement.
For a full-time 5-day working week, that works out at exactly 28 days.
How to calculate annual leave for part-time staff
Part-time workers should be treated no differently from full-time employees and are also entitled to 5.6 weeks of annual leave, but on a pro-rata basis. Here's how to calculate their entitlement:
[Number of working days per week] x 5.6 weeks = annual leave entitlement
For example, someone working 3 days a week would have 3 x 5.6 = 16.8 days of annual leave per year. This applies to agency workers too!
How to calculate annual leave for zero-hours contract workers
For those on zero-hours contracts (or those who work irregular hours), like seasonal or gig workers, their statutory holiday entitlement is fundamentally the same. You just calculate it a bit differently.
While it might seem tricky, it's actually quite straightforward. The annual leave calculation formula is:
[Number of hours worked] x 12.07% = holiday allowance.
This percentage figure comes from the fact that 5.6 out of the 52 weeks in a full year is 12.07%. So it ends up being the same as everyone else, even if they do have wonky working patterns.
How is annual leave calculated when leaving a job?
When an employee leaves a job, their annual leave entitlement is calculated based on the leave they've accrued up to your leaving date. It's pretty straightforward.
For example, if an employee is leaving halfway through the year but has only used a quarter of their holiday allowance, they are likely eligible for pay in lieu to compensate for the unused leave. Alternatively, the employee may take their remaining annual leave during their notice period, subject to approval by their employer.
To calculate this, you can use the following formula:
(A x B) - C = Remaining Holiday Entitlement
Where:
- A is their holiday entitlement for the full year.
- B is the proportion of the year that’s gone by the time of leaving.
C is the amount of leave already taken.
Your holiday allowance rights
If you’re employed in the UK and work five days a week, you have the right to a minimum of 28 days paid annual leave. This is your statutory entitlement, which translates to 5.6 weeks of paid holiday. It's important to note that this 28-day minimum may or may not include public and bank holidays, depending on your employer's policy.
Some employers might provide more than the minimum holiday allowance as part of their benefits package or contractual agreements with individual workers. It's common that longer-serving company members get higher amounts of leave - e.g. 1 extra day of leave per year worked, up to a reasonable maximum.
It’s worth remembering that the legal minimum is 28 days. Even if an employee works six days a week, the employer isn't legally required to provide any extra paid holiday.
Do public and bank holidays count towards annual leave?
At the company’s discretion, paid bank and public holidays can count towards an employee’s minimum annual leave entitlement. Some workers are given a public and bank holiday entitlement in addition to their 28 days paid annual holiday allowance. It’s also worth noting that requiring an employee to work on a bank holiday does not automatically entitle them to an enhanced pay rate.
What about unpaid leave?
While there's no legal right to unpaid leave, employers can grant it based on individual circumstances. During maternity, paternity, adoption leave, and absences caused by illness, an employee’s holiday entitlement will accrue just as if they were working.
Resolving disputes
Everyone needs a holiday, and companies have a duty of care to make sure every member of their workforce gets a decent time out from the busy workplace. If someone has not been given their legal holiday entitlement, or hasn’t received their holiday pay, their first course of action should be to speak to their employer. If a resolution can't be agreed, it might be wise for them to contact a trade union rep.
How to calculate annual leave entitlement: things to remember
As soon as someone starts work, they begin to accrue an annual holiday allowance. An employee who is entitled to 28 days leave a year should be paid the same wage while on holiday as when they are at work.
It might be surprising not everyone thinks to take their full allowance of leave. If you're a manager, you should encourage your team to use their holiday time. A company culture that encourages proper rest will have happier, more productive employees.
An employer can decide when an employee takes a holiday, but they must allow them to take their full entitlement. When the worker’s employment contract is terminated, they are entitled to payment for any annual leave allowance not taken.
Remember, granting workers a decent holiday allowance is key to making them feel valued, improving their wellbeing, and boosting productivity and performance.
Maximise your staff leave management with Timetastic
Are you tired of manual processes that eat up your valuable time and resources? Say goodbye to spreadsheet headaches and hello to seamless holiday leave management with Timetastic, your all-in-one staff leave planner.
- Flexible pricing plans to fit your budget, scalable for businesses of any size.
- Enjoy a user-friendly experience with our free mobile app for iOS and Android.
- Stay organised with an auto-updating time-off calendar.
- Simplify time-off requests and management.