How should annual leave be calculated?

CiniO

Citizens information website state the following:

There are 3 different ways of calculating your annual leave entitlement:

1. Based on the employee's working hours during what is called the leave year, which runs from April to March. An employee who has worked at least 1,365 hours in the leave year is entitled to the maximum of 4 working weeks' annual leave unless the employment ceases during the leave year. Many employers use the calendar year (January-December) instead of the official leave year to calculate entitlement
2. By allowing 1/3 of a working week for each calendar month in which the employee has worked at least 117 hours
3. 8% of the hours worked in the leave year, subject to a maximum of 4 working weeks
An employee may use whichever of these methods gives the greater entitlement.

Now - the employee working between 1st May and 31 October - 6 months. No annual leave taken during that time. Job will be finished then at the end of October.
According to method 2, employee should be entitled to 2 weeks (2x40 hours) annual leave which should be paid with the last payslip before P45 is issued. (that's my understanding).

However due to fact that employee worked plenty of overtime hours (most weeks between 50 and 55 hours per week instead of 40), total number of hours worked during that 6 months will be around 1300.
So if you use method 3, then 8% of 1300 hours is payment for 104 hours, which equals to just over 2.5 week.

Citizens information claims that employee can use whichever method gives greater entitlements.
Is employer obliged to pay annual leave using method 3 in that case?

Nody

If you want legal advise you need to speak to a solicitor; layman answer would be yes however as they don't reach the 20 day limit.

Kristopherus

Just note that overtime that has been paid for is not counted in the calculation.

CiniO

Kristopherus wrote: »

Just note that overtime that has been paid for is not counted in the calculation.

So paid overtime doesn't account for annual leave?
Is that right?

indigo twist

I would interpret it that the "maximum of 4 working weeks" is pro-rata, therefore in the case outlined above, the maximum allowed would be 2 working weeks using method 3.

The_Conductor

Its actually a minimum of 4 weeks annual leave- for a fulltime employee- not a maximum.

Just because its on Citizen's Information Bureau- doesn't make it accurate........

The_Conductor

The_Conductor wrote: »

Its actually a minimum of 4 weeks annual leave- for a fulltime employee- not a maximum.

Just because its on Citizen's Information Bureau- doesn't make it accurate........

I'd say what they're getting at is your statutory entitlement to holidays is 20 days, you're not actually entitled by law to more than that. If your employer gives you more then it's on their own dime.

Kristopherus

CiniO wrote: »

So paid overtime doesn't account for annual leave?
Is that right?

Maybe in some cases, generally in Craft Employments, where there may be union agreements in place. But in most employments it one or the other.

Mrs OBumble

The_Conductor wrote: »

Its actually a minimum of 4 weeks annual leave- for a fulltime employee- not a maximum.

Just because its on Citizen's Information Bureau- doesn't make it accurate........

However in this case, I would say they're right.

If you work full time for a year, your maximum entitlement is four working weeks - no matter how many hours you work in a week.

You may be allowed more actual weeks than this (eg if your contracted hours are 40 per week, but you average 48 and so your employer chooses to give you four weeks and one day). But it's not a legal entitlement.

Gael23

Slightly OT question relating to annual leave.
Do you have to accrue holidays before you take them?

Say if you wanted to take 2 weeks holidays in Feb or March, is this allowed in the workplace?

ryanf1

ryanf1 wrote: »

Slightly OT question relating to annual leave.
Do you have to accrue holidays before you take them?

Say if you wanted to take 2 weeks holidays in Feb or March, is this allowed in the workplace?

Assuming the leave year starts on Jan 1st (often it won't), it's really up to the employer. I have to accrue holidays but they will let you go into a negative balance as long as your line manager agrees.

leeroybrown

ryanf1 wrote: »

Say if you wanted to take 2 weeks holidays in Feb or March, is this allowed in the workplace?

That would be entirely dependent on the individual policy of the employer.

indigo twist

ryanf1 wrote: »

Slightly OT question relating to annual leave.
Do you have to accrue holidays before you take them?

Say if you wanted to take 2 weeks holidays in Feb or March, is this allowed in the workplace?

Usually it would be allowed.

Of course it would be deducted on a pro rata basis if the employee were to leave the company before the year was out.

notsobadinc

Old thread but query nonetheless..

I'm talking ng a career break on August 21st and have so far taken 4 days AL and employer tells me I have 7 days left, however I was told by my Line Manager that I was entitled to 14 days leave in total as was not quitting job.

My working week is 5 days 39 hours 8-5 . 4pm Friday, however we are generally expected to work a minimum 5 hours extra each week (unpaid).
He calculated number of weeks I'll be in company divided by total year multiplied by AL...so 34 (weeks) ÷52 × 22 =14 days.

It's only 3 days that I'm looking to get off my Employer and no big deal if they don't give but was wondering are they correct in their calculations or my Line Manager.

Any advice appreciated or correct forum..

The_Conductor

Before I tried to suggest anything to my employer- I'd seek the basis on which they are calculating that you have 11 days (and not 14 days).
It seeks a clearcut 14 days- on a pro-rata basis- if they are suggesting otherwise- you need to know how they're coming up with their calculation- if you wish to refute it.

notsobadinc

The_Conductor wrote: »

Before I tried to suggest anything to my employer- I'd seek the basis on which they are calculating that you have 11 days (and not 14 days).
It seeks a clearcut 14 days- on a pro-rata basis- if they are suggesting otherwise- you need to know how they're coming up with their calculation- if you wish to refute it.

Thanks Conductor. You are always very insightful in your responses. I am on annual leave from today so will just take the 3 days anyway as I'm working over and above the role requirements.
Cheers notso