How much holiday pay to give your staff

For a 5-day week worker, the entitlement is 5.6 paid weeks or 28 days per annum which can include public holidays. In the case of 6 days per week workers, it is capped at the 28 days. It is calculated from the first day of employment. For those working less than a 5-day week, it would be pro-rata.

Coming from old EU law which still applies in the UK, a worker must take at least 4 weeks holiday per leave year, If less is taken, it cannot be carried over. You are not permitted to “buy” unused statutory leave.

The amount payable per week is obvious where pay is fixed. If it is not, then a 12-week average is used.

When planning holidays, consider employees on irregular hours. For those with variable work patterns, holiday pay must reflect the average weekly pay over the previous 52 weeks, including any overtime or commissions. This ensures fairness and compliance with regulations.

Additionally, clear policies should be in place to manage holiday requests, preventing understaffing and ensuring smooth operations. Encourage staff to plan holidays early, balancing business needs with employee well-being.

Moreover, keeping accurate records of leave taken and remaining entitlements helps avoid disputes and ensures legal compliance. Remember, a transparent and fair holiday policy fosters a positive work environment, enhancing employee satisfaction and retention.

Here is a link if you need more information.

https://www.gov.uk/calculate-your-holiday-entitlement

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