Almost all PAYE workers are entitled to 5.6 weeks as paid holiday per year. This includes agency workers, irregular workers and zero-hour workers. Moreover, Part time workers are also entitled to holiday prorated.
Besides basic pay, overtime should also be included in the calculation of holiday entitlement.
There are different types of overtime, Guaranteed overtime, Non-guaranteed overtime and Voluntary overtime.
Employer is obliged to offer and a worker is obliged to accept guaranteed overtime due to the contractual obligations. For instance, if the contract requires the staff to work late at the last day of the month to meet a deadline and the staff agrees to stay late, it is called guaranteed overtime.
The employer is not bound to offer non-guaranteed overtime. However, when it is offered, it becomes mandatory for the worker to accept it.
For instance, a healthcare provider, the employer, knows that there are going to be less staff in August because of the holidays granted to them. But the employer does not know how many of them will be absent and for how long.
Guarantee or non-guarantee overtime should be included in the employment contract. Employee’s refusal to stay in the office after 5pm on the last day of the month, in view of the missed deadlines or targets, is the breach of contract.
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There is no obligation on the employer to offer voluntary overtime and no obligation on the worker to accept it when it is offered. Moreover, refusing any voluntary overtime doesn’t allow employer to fire any employee
Guaranteed or non-guaranteed overtimes should be included in the worker’s holiday entitlement. Voluntary overtime should also be included in the holiday entitlement provided that the concerned staff is earning overtime on regular basis. The regularity of the overtime should be at the discretion of the employer.
For further information on the above, if you are not certain about your holiday entitlement calculations, please don’t hesitate to contact our accountant Josy Woung, ACCA on email@example.com or call 0113 887 0218 or visit our office anytime. No appointment is needed.