Employment Law Services

Employee’s Annual Leave Entitlement – Calculator

Welcome to Employment Law Clinic’s annual leave calculator.

Employment law provides all full-time staff with the right to 28 days leave every year (equivalent to 5.6 weeks for a full-time worker employed 5 days a week).

For staff on regular working patterns, these calculations should be relatively easy – you need to pay your staff for 28 days leave every year. (For the first or last year of an employment, Business Link provides a tool that will calculate the amount of leave due.)

One of the main complications come when staff work different hours each week: they’re still entitled to 28 days leave, but the amount of pay they should receive will not be so obvious, given this can vary weekly based on the hours worked.

For these staff, employment laws require employers to take the average pay for the previous twelve weeks, and pay this amount for each week of holidays taken.

If you pay staff an hourly rate and need to calculate what the average pay has been for the previous twelve weeks, enter the pay for each of the last twelve weeks in the boxes below; it doesn’t matter if the worker only done a few hours one week, as long as they were paid the week can be used to calculate an average weekly pay, although weeks with no pay should not be used – go back a further week to get the necessary pay.

(If it’s more convenient, you can instead enter the hours worked over the previous twelve weeks, and then pay an equivalent amount for a week’s leave as these hours. If you opt for this calculation, ignore the £ sign in the calculation, and remember to put the hours in decimal form: 45 minutes will be .75; 30 minutes will be .50, etc.)

For more assistance on your annual leave allowances, or other HR or employment law matters, please contact Employment Law Clinic.

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Legal Notes:

In most cases, employees attract leave at the rate of 12.07% of hours worked. However, this is not straightforward for workers (or their employers) with varying hours week by week, as the holiday pay is based not on the hours worked previously, but on the hours worked in the 12 weeks previously (further weeks are considered where no wages were earned in a given week). This is in accordance with Regulation 16 of the Working Time Regulations 1998 (which provide for a week’s pay for a week’s holiday) & refers to Sections 221 to 224 of the Employment Rights Act 1996 for the purposes of determining a week’s pay; Section 224 of the ERA sets the figure at the average of the previous twelve weeks for employment with no normal working hours.

The alternative option – rolled-up holiday pay – is unlawful, as determined by the European Court of Justice in joined cases C-131/04 & C-257/04: paragraph 63:
“It follows… that Article 7 of the directive precludes the payment for minimum annual leave within the meaning of that provision from being made in the form of part payments staggered over the corresponding annual period of work and paid together with the remuneration for work done, rather than in the form of a payment in respect of a specific period during which the worker actually takes leave.”