The UK has specific laws governing paid time off and understanding these regulations is important - whether you're an employer managing a team, or an employee looking to understand your rights.
This guide will walk you through the basics of holiday entitlement in the UK, explaining how it works for different types of contracts and what you need to know about bank holidays. We'll cover everything from statutory minimums to pro-rata calculations, helping both employers and employees figure out where they stand.
Who is entitled to holiday leave?
In the UK, nearly all individuals that are classified as ”employees” or “workers” are entitled to annual leave, otherwise known as "paid holiday". It’s not a benefit that's limited to people in permanent, full-time positions - it covers a wide range of working arrangements:
The only people who are generally not entitled to statutory holiday pay are those who are self-employed and run their own businesses. But, if you’re a contractor or freelancer working through an agency, you should check your employment status - this will affect your holiday entitlement.
How much holiday are you entitled to?
The amount of holiday someone is entitled to will depend on the days or hours they work, and whether they've agreed anything extra with their employer.
In short:
Part-time employees are entitled to a pro-rated amount of holiday which is based on the hours they work
Workers on zero-hour contracts still accrue, and are entitled to, paid holiday
Agency workers have the same right to paid holiday as a permanent employee doing the same job
For temporary and seasonal staff the right to holiday leave begins from the first day of employment, and it accrues over time
Calculating holiday entitlement for full-time employees
For a full-time employee working a standard 5-day week, the statutory minimum is 5.6 weeks of paid holiday a year - which equals 28 days (including public holidays).
This is calculated by taking the number of days they’re contracted to work a week by 5.6.
How does holiday entitlement work for part-time employees?
Whether you’re a part-time employee yourself, or you hire them, it’s crucial you understand how holiday entitlement works for part-time workers to make sure you remain compliant with employment laws and uphold a fair work environment.
It starts with understanding the two main types of employment status in the UK: employees and workers.
Although often used interchangeably, these terms carry differences in terms of employment rights - employees benefit from the highest level of employment protection, while workers only have limited rights. Typical examples of these employment statuses can be:
Part-time employees: a retail assistant or marketing manager permanently employed on a 25-hour/week contract
Part-time worker: a delivery driver on a zero-hour contract, or a customer support agent working irregular hours
Pro-rata holiday entitlement will depend on the employment status of the individual. Once you’ve established which status applies, you can work out pro-rata holiday entitlements.
For part-time workers, holiday entitlement is pro-rated based on the type of employment contract they’re on and how many hours they work in a week.
How to calculate pro-rata holiday entitlements
As mentioned above, part-time holiday allowances are calculated based on the individual’s employment status and the number of days or hours they work in a week. The method used to work out pro-rata holiday entitlement for part-time will be different for workers and employees:
Employees will get a pro-rated amount of paid holiday entitlement based on a full-time employee’s holiday entitlement, eg 28 days per year
Workers, who are usually paid by the hour, get a holiday allowance and pay based on how many hours they’ve worked
Calculating holiday entitlement for part-time employees
Calculating the holiday entitlement of a part-time employee is the easiest of the two scenarios. Simply look at the number of days the employee is typically contracted to work in a week and then pro-rate this amount based on a full-time, 5-day, entitlement equivalent.
The pro-rated holiday entitlement for a part-time employee is as follows:
Number of days worked in a week | Calculation | Pro-rated holiday entitlement per year* |
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*Whenever a calculation ends on a decimal that is not .5, the entitlement is rounded up to the nearest half day. This is because legally you cannot round down a holiday entitlement.
How to work out holiday entitlement for workers on hourly or shift contracts
Working out holiday entitlements for part-time workers is a little different. However, workers are still entitled to holiday pay, which is also based on the full-time equivalent of 5.6 weeks' paid holiday as a minimum.
The way holiday entitlements are calculated for workers on zero-hour contracts, shifts or hourly contracts will be based on the average number of hours they’ve worked in a week in the last 52 weeks.
If the worker has been with the business for less than 52 weeks, just work out this average with the number of weeks they’ve worked to date.
Bank holiday entitlement
In the UK, the statutory minimum holiday entitlement can include bank holidays.
There’s no automatic legal right for employees to have paid time off on bank holidays. It’s up to the employer whether to include bank holidays as part of the employee's statutory annual leave. Most employers choose to do this.
The specifics of how bank holidays are handled should be clearly stated in an employee's contract. The contract will clarify whether the annual leave entitlement is "inclusive of bank holidays" or if bank holidays are given as extra days on top of the minimum entitlement.
For part-time employees, bank holidays are included in their pro-rata holiday entitlement. For example, if a part-time employee's pro-rated entitlement is 16.8 days, any bank holidays that fall on a day they would normally work would be taken from this total.
What if a bank holiday falls on a day the employee usually works?
If a bank holiday falls on a day a part-time employee or worker usually works, it’s up to the employer and the individual to agree whether this day should be worked or not. There’s no legal obligation for them to take it as time-off or to work.
Wrapping up
Understanding holiday entitlement is an important aspect of employment in the UK for both employers and employees. Giving employees their full holiday entitlement isn’t just a legal obligation; it contributes to a healthy work-life balance. Clear communication, fair calculations and a well-defined policy will benefit everyone, helping to create a productive and positive working environment for your entire team.
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