November 2019
HOLIDAY ENTITLEMENT
Guide on Calculating Statutory Holiday
Entitlement for Workers
© Crown copyright 2019
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3
Contents
Introduction _______________________________________________________ 4
Using this Guidance _______________________________________________ 5
Definitions _______________________________________________________ 6
1 Calculating Leave for a Full Leave Year ______________________________ 9
1.1 Days per Week ______________________________________________ 9
1.2 Hours per Week / Compressed Hours ____________________________ 9
1.3 Casual, Irregular or Annualized Hours ___________________________ 10
1.4 Shift Workers _______________________________________________ 10
2 Calculating Leave for Somebody Starting Part-Way Through a Leave Year __ 12
2.1 Days per Week _____________________________________________ 13
2.2 Hours per Week / Compressed Hours ___________________________ 14
2.3 Casual, Irregular or Annualized Hours ___________________________ 15
2.4 Shift Workers _______________________________________________ 16
3. Calculating Leave for Somebody Leaving Part-Way through a Leave Year ____ 17
3.1 Days Worked per Week ______________________________________ 17
3.2 Hours Worked per Week ______________________________________ 17
3.3 Casual, Irregular or Annualized Hours ___________________________ 18
3.4 Shift Workers _______________________________________________ 19
4. Calculating Leave for Somebody Starting & Leaving Part-Way Through a Leave
Year ____________________________________________________________ 21
4.1 Days Worked per Week ______________________________________ 21
4.2 Hours Worked per Week ______________________________________ 22
4.3 Casual, Irregular or Annualized Hours ___________________________ 23
4.4 Shift Workers _______________________________________________ 23
Holiday Entitlement Guidance
4
Introduction
This document provides guidance on how statutory holiday entitlement may be calculated for
workers on different types of contract. It has been designed as a practical guide for employers
and workers to accompany the holiday entitlement calculator.
Holiday legislation grants almost all workers 5.6 weeks paid annual leave a year. This includes
agency workers, workers with irregular hours and workers on zero-hours contracts. This
entitlement is set out in the Working Time Regulations 1998
1
. Guidance on how to calculate
the pay that a worker is entitled for their statutory leave entitlement is available online
2
.
A worker continues to accrue holiday entitlement while they are on sick leave, maternity leave,
paternity leave, parental leave, shared parental leave and adoption leave (collectively known
as ‘statutory leave’). A worker may request holiday at the same time they are on sick leave (but
cannot be required to take holiday while on sick leave).
Please note:
• This guidance is focussed on the legal minimum entitlement of 5.6 weeks’ paid holiday.
Many individuals will have contracts entitling them to additional paid holiday beyond the
statutory minimum. Individual contracts should be checked first.
• All references to ‘worker’ refer to all individuals whose employment status is either as a
‘worker’ or an ‘employee’, meaning they are entitled to paid holiday. For further
information on employment status and definitions please visit GOV.UK.
• This guidance refers solely to the holiday entitlement aspect of paid annual leave. The
leave calculated using this guidance must be paid to qualify as part of the statutory 5.6
weeks.
• This guidance makes references to leap years and leap days. A leap year is a calendar
year containing an additional day added to keep the calendar year synchronized with
the astronomical or seasonal year. The additional day, referred to in this guidance as a
‘leap day’, is the 29
th
February. The next leap year is 2020 and the next leap day is 29
th
February 2020.
• This guidance should be used to calculate the statutory minimum leave entitlement. As
such, the entitlement calculated must not be rounded down (and in certain
circumstances must be rounded up).
• Throughout this guidance, exact figures are used in calculations. The final figure may
therefore not precisely match the calculation written before it. This approach is taken to
mitigate rounding errors; the figures in the written calculation are rounded, but the
figures in the actual calculation are not. Answers are rounded up to the same accuracy
as in the statutory holiday entitlement calculator available on GOV.UK.
1
Working Time Regulations 1998: regulations 13, 13A, 15A and 16 (subject to some limited exceptions, for
example for services such as the armed forces or the police in certain circumstances, see regulation 18(2)(a)).
There is also separate legislation for particular sectors or occupations, such as for agricultural workers and
seafarers (for example, see regulation 18 of the Working Time Regulations).
2
https://www.gov.uk/holiday-entitlement-rights/holiday-pay-the-basics
Holiday Entitlement Guidance
5
Using this Guidance
Before reading this guidance please check the information on GOV.UK on the basics of how
holiday entitlement should be calculated as this guidance is designed to complement what is
available.
This guidance contains additional detail and is designed to complement the guidance already
available on GOV.UK. It should be used to help improve understanding of how to calculate
statutory holiday entitlement. However, it does not and cannot provide definitive answers to
individual queries. It is not intended to be relied upon in any specific context or as a substitute
for seeking advice (legal or otherwise) on a specific circumstance, as each case may be
different.
Whether you are a worker or employer, if you are unsure about any aspect of holiday pay
entitlement you can contact Acas:
• www.acas.org.uk
• Telephone: 0300 123 11 00
• Textphone: 18001 0300 123 1100
Holiday Entitlement Guidance
6
Definitions
This guidance is split into four sections, with each section covering holiday entitlement
calculations a different type of working arrangement. These are defined below to provide clarity
for users. Definitions of other common terms are also provided.
Section 1 - Days Worked per Week
Individuals with a fixed working pattern involving a set number of days of equal length. Leave
can be calculated in days of fixed length.
This option can also relate to those who work a pattern of days over a fortnight (e.g. a nine-day
fortnight), as they will have a fixed “average” working week (in this case 4.5 days a week
makes up a nine-day fortnight).
Example working patterns:
• 5 days a week, with each day being 8 hours long
• 3 days a week, with each day being 6 hours long
• 9 days every two weeks, with each day being 7.5 hours long
Section 2 - Hours Worked per Week / Compressed Hours
Individuals contracted to work a set number of hours in a period of time, over days of different
lengths. This can be working over a week, a fortnight, or another working pattern.
For some workers who work a fixed number of hours but not the same number of hours each
day, or who work part-time, it may be more appropriate to calculate their holiday entitlement in
hours. The same may be the case for those who work compressed hours (full-time hours over
fewer days).
Example working patterns:
• 25 hours a week, over 4 days. Monday and Wednesday being 8 hours long, Tuesday
and Thursday being 4.5 hours long
• 40 hours a week, over 5 days. Monday, Wednesday and Thursday being 10 hours long,
Tuesday and Friday being 5 hours long
Section 3 - Casual, Irregular or Annualized Hours
Individuals who do not have guaranteed hours or who do not have a regular working pattern.
As there is no fixed work pattern on which to base annual leave, the entitlement should instead
generally be kept in weeks.
For workers who do not have regular hours, or who are on an annualised hours contract, it
may be appropriate to grant paid annual leave to be taken during periods when no work is
performed. This depends on the particular circumstances, and employers must ensure workers
are able to take their full leave entitlement. This may also include workers on casual
employment contracts.
Example working pattern:
Holiday Entitlement Guidance
7
• A worker on a zero-hours contract who only works when they are offered work by their
employer. They are not obligated to accept this work, and have no regular hours.
Annualised Hours
For the purposes of this guidance an annualised hours contract is defined as a contract which
allocates a worker a certain number of hours that will be worked during a particular leave year.
The expectation is that there will be periods of the leave year where no work is performed,
which is when annual leave will be taken.
Example working pattern:
• An agricultural worker who is contracted to work 1,200 hours over the course of the
year. The actual time spent working varies depending on the season and the business
need.
Section 4 - Shift Workers
Individuals contracted to work a regular pattern involving a set number of shifts over a set
number of calendar days. For the purposes of this guidance, it is assumed that a shift is
equivalent to a full day’s work; i.e. workers cannot work more than a single shift a day.
Workers on shifts frequently do not have their shift pattern aligned to a week. Therefore,
holiday entitlement in these calculations is based on an average week worked, using the shift
pattern to calculate how many shifts are worked on an average week. It is assumed that shifts
are of equal length. The calculations will be different if this is not the case.
Where shifts are not of equal length, the sections on shift workers below will not apply. In this
case it may be more appropriate to calculate leave in hours based on the methodology laid out
under “Hours Worked per Week”. It may still be necessary to calculate the average hours and
average days worked in a week in order to perform the calculations accurately.
• 5 shifts of 8 hours each worked every 8 days.
• 3 days of work on (9 hours each), 2 days off (3 shifts every 5 days).
Leave Years
When a worker starts a job, the timing of their leave year may be specified in a relevant
agreement
3
. If the worker’s leave year is not specified in an agreement, then it simply starts on
the first day of the job.
The timing of the leave year is important when specified as it governs how much leave a
worker can take. Workers should be given the opportunity to take their annual leave inside the
leave year that it accrues
4
. A leave year is either 365 days or 366 days, depending on the
3
A “relevant agreement” means a workforce agreement, a collective agreement which forms part of a contract
between the worker and employer, or any other agreement in writing which is legally enforceable between the
worker and employer.
4
The Working Time Regulations entitle workers to 4 weeks’ leave which must be taken within the leave year
(regulation 13), and a further 1.6 weeks’ leave (making 5.6 weeks in total, regulation 13A) which may be taken in
the following leave year (but no later).
Holiday Entitlement Guidance
8
inclusion of a leap day (February 29
th
). Examples throughout this guidance are based on the
appropriate length of year or leap year based on the dates used.
Holiday Entitlement Guidance
9
1 Calculating Leave for a Full Leave Year
Workers who have regular working hours and a fixed length of working day should have
their holiday calculated in days. This is the most straight-forward calculation.
Workers who are in employment for a full leave year are entitled to 5.6 weeks’ statutory leave
subject to a cap of 28 days. In practice, this cap only affects a worker if they work for more
than 5 days a week.
See section 2 for how workers may accrue leave when they are in the first 12 months of a job.
Days per Week
The statutory holiday entitlement for a worker who works a full leave year is the lower of:
a) 28 days; or
b) 5.6 x days worked per week
Example 1:
Andrew works 4 days per week, with each day being 8 hours long. His statutory leave
entitlement is the lower of 28 days or 5.6 x 4 days per week, which is 22.4 days.
Therefore, Andrew’s statutory leave entitlement is 22.4 days.
Example 2:
Beckie works 6 days per week. Her statutory leave entitlement is the lower of 28 days or 5.6 x
6 days per week which is 33.6 days.
Therefore, Beckie’s statutory leave entitlement is 28.0 days.
Hours per Week / Compressed Hours
Where workers work a fixed number of hours each week but not the same number of hours
each day, the legislation does not state exactly how to incorporate the 28-day statutory cap. In
our view it is appropriate to incorporate the cap as 28 days of the average working day.
Therefore, statutory leave entitlement should be calculated in days, and then multiplied by the
average length of the working day.
Statutory Leave = annual entitlement in days × average working day in hours
As covered in section 1.1 of this guidance, entitlement in days is the lower of:
a) 28 days; or
b) 5.6 x days worked per week
Holiday Entitlement Guidance
10
The average working day is defined as:
Average Working Day =
hours worked per week
days worked per week
Example 1:
Irene works a total of 30 hours over 4 days a week, working 9 hours on Monday and
Wednesday and 6 hours on Tuesday and Thursday.
Her statutory entitlement in days is the lower of 28 days or 5.6 x 4 days (22.4 days). Therefore,
Irene’s full statutory annual leave is 22.4 days.
Her average working day is 30 hours divided by 4 days, or 7.5 hours per day.
Therefore, Irene’s statutory holiday entitlement for a full leave year is 22.4 days x 7.5 hours =
168.0 hours a year.
Depending on which days she takes off as leave, it will either be 6 hours or 9 hours from her
total leave entitlement.
Casual, Irregular or Annualized Hours
Workers who are in employment for a full leave year are entitled to 5.6 weeks’ annual leave.
The Working Time Regulations do not set out how to convert this into entitlement in days or
hours for workers with irregular hours. In practice, if needed, employers may wish to calculate
average days or hours worked each week based on a representative reference period,
although the Regulations do not expressly provide for this. In all cases, employers must
ensure that each worker receives at least 5.6 weeks’ annual leave per year.
Shift Workers
A shift-worker is entitled to 5.6 weeks’ annual leave each year, although this is still subject to
the 28-day cap. In practice this is often calculated in shifts’ worth of annual leave
5
.
The legislation does not state how to calculate statutory annual leave specifically for shift
workers. In our view, an appropriate practical approach is to make calculations on the basis
that shift workers are entitled to 5.6 weeks of their average working week, restricted to 28 days
of shifts. Therefore, a shift worker’s full statutory annual leave entitlement is the lower of:
a) 5.6 weeks x average shifts per week; or
b) 28 days’ worth of shifts
c) Average shifts per week are calculated as:
Shifts per shift pattern
Calendar days per shift pattern
×7
5
This is on the basis that the shifts are all the same length, as noted in the definitions section on page 6 above.
For workers with shifts of different lengths, do not use this category, and instead check whether they fall within the
“hours worked per week” category described in the definitions.
Holiday Entitlement Guidance
11
Example 1:
Wanda works 4 shifts every 9 days.
As Wanda’s shift pattern does not align with a calendar week, the first step is to calculate her
average shifts per week:
4
9
× 7 = 3.1 shifts per week
Wanda’s statutory annual leave entitlement is then the lesser of 5.6 x 3.1 shifts (17.5 shifts) or
28 days’ worth of shifts.
Therefore, Wanda’s full statutory annual leave entitlement is 17.5 shifts per year.
Holiday Entitlement Guidance
12
2 Calculating Leave for Somebody
Starting Part-Way Through a Leave
Year
Where workers start employment part-way through a leave year, the leave must be pro-
rated to their time in employment. The methodology as to how this leave is calculated is
laid out in this section.
Where the leave year is set by an agreement, it is very likely that the worker will not start on
the first day of the leave year, and so start part-way through the leave year. Workers who start
part-way through a leave year are entitled to a pro-rating of their annual entitlement of 5.6
weeks. This is based on the proportion of the leave year remaining. For example, if a worker
starts a job with only half of the leave year remaining, they are only entitled to half of the
annual leave entitlement for the full year.
Workers in the first 12 months in a job
The calculations laid out in Section 2 of this guidance and used in the corresponding calculator
explain how to calculate the leave entitlement for a worker to the end of the leave year.
However, the Working Time Regulations provide particular rules for the first 12 months in a job.
The leave a worker may take accrues in steps as the worker progresses through the first 12
months. Under this system, a worker gets one-twelfth of their full annual leave entitlement on
the first day of each month,
bringing it up to the calculated total by the end of the leave year
(regulation 15A of the Working Time Regulations).
6,
7
If the total includes a fraction of a day, it
is then rounded up. If the fraction of a day is below a half day it is rounded up to the next half
day, if it is above a half-day it is rounded up to the next whole day.
8
For example, if a worker starts employment part-way through a leave year, they will receive
1/12
th
of their full annual leave entitlement on their first day. After they have been in
employment for a full month, they receive another 1/12
th
of their full annual entitlement on the
first day of the second month, and again on the first day of the third month, continuing to the
end of the leave year.
If a worker leaves prior to the end of the leave year, the more appropriate calculation is “For
Somebody Starting and Leaving Part-Way Through a Leave Year”; see Section 4.
6
The legislation does not state whether the start of a month means the first day of each calendar month (for
example 1
st
January, 1
st
February etc), or whether the first month begins on the first day in the job, the next month
begins one month on and so on (for example, for a worker who starts on 15
th
January, the first month begins on
that day, the second month begins on 15 February etc). In our view (which is not legally binding), the second
interpretation is more likely to be correct, so that the first month begins on the first day of the job, the second
month begins one month later and so on.
7
The calculated total is the amount of leave that the calculations in this guidance suggest a worker is entitled to
when they start part-way through a leave year. The corresponding calculator will also give that figure.
8
If the fraction is already exactly a half day, this does not need to be rounded up.
Holiday Entitlement Guidance
13
Example
Pat starts work on Monday 1
st
July 2019. Her contract stipulates that her leave year is from 1
st
January to 31
st
December. Her full annual leave entitlement as calculated is 28 days.
On the first day of her employment (1
st
July), Pat receives 1/12
th
of this full annual leave
entitlement. On the 1
st
August she receives another 1/12
th
. This accrual system continues up
until she has completed 12 months of employment. In Pat’s case, by the 31
st
December, Pat
would have accrued 6 months’ worth of leave; or 14 days. As this is already exactly a half or
full day, Pat’s leave entitlement to the end of the leave year does not need to be rounded up,
and would be 14 days.
Days per Week
The statutory holiday entitlement for a worker who starts part-way through a leave year is
calculated as:
Leave entitlement for full leave year ×
Months Started
12
;
rounded up to the next half or whole day (whichever is closer)
This is calculated in a three-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Pro-rate based on the number of months started;
3. Where this includes a fraction of a day, round up to the next half or whole day
(whichever is closer).
Example 1:
Charlie starts work on Monday 2
nd
September 2019, working 5 days a week. His contract
states that his leave year starts on 1
st
April 2019 and ends on 31
st
March 2020. Between 2
nd
September 2019 and 31
st
March 2020, Charlie works days in seven months.
Step 1 – Calculate full annual leave entitlement
Charlie’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. For a full year, Charlie is entitled to the lower of 28 days or 5.6 x 5
days (also 28 days). Therefore, Charlie’s full annual leave entitlement is 28 days.
Step 2 – Pro-rate based on the number of months started
Charlie works in 7 months out of 12 in the leave year (with the first month starting on 2
nd
September, the second month starting on 2
nd
October etc). This is entered into the equation
above in order to pro-rate the entitlement:
28 days×
7
12
= 16.33 days
Step 3 – Where this includes a fraction of a day, round up to the next half or whole day
(whichever is closer)
Holiday Entitlement Guidance
14
The final step is to round it up to the next half or whole day (whichever is closer). 16.33
rounded up is 16.5 days.
Therefore, Charlie’s leave entitlement to the end of the leave year is 16.5 days.
Example 2:
Denise starts work on Monday 18
th
February, working 4 days a week. Her employer runs a
calendar leave year, meaning that her leave year runs from 1
st
January 2019 to 31
st
December
2019. The leave year includes 11 “first days” of a month (18
th
February, 18
th
March and so on
through to 18
th
December).
9
Step 1 – Calculate full annual leave entitlement
Denise’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. For a full year, Denise is entitled to the lower of 28 days or 5.6 x 4
days (22.40 days). Therefore, Denise’s full annual leave entitlement is 22.4 days.
Step 2 – Pro-rate based on the number of months started
Denise is in employment in 11 months out of 12 in the leave year. This is entered into the
equation above in order to pro-rate the entitlement:
22.4 days×
11
12
= 20.53 days
Step 3 – Where this includes a fraction of a day, round up to the next half or whole day
(whichever is closer)
The final step is to round it up to the next half or whole day. 20.53 rounded up is 21.0 days.
Therefore, Denise’s leave entitlement to the end of the leave year is 21.0 days.
Hours per Week / Compressed Hours
Where workers work a fixed number of hours each week but not the same number of hours
each day, the legislation does not state exactly how to round to the next half or full day. In our
view it is appropriate to calculate leave in hours based on the average working day.
The statutory holiday entitlement for a worker who starts part-way through a leave year is
calculated as:
Leave entitlement for full year ×
Months Started
12
;
rounded up to the next half or whole day (whichever is closer)
This is calculated in a four-step method:
1. Calculate the worker’s full annual leave entitlement in days;
2. Pro-rate based on the number of months started;
3. Where this includes a fraction of a day, round up to the next half or whole day
(whichever is closer);
9
“First days” of a month are used to calculate the leave entitlement for the worker. See the introduct
Holiday Entitlement Guidance
15
4. In our view, it is appropriate to then multiply by the average working day to convert into
hours.
Example 1:
Kirsty starts work on Monday 19
th
August, working 35 hours a week over 5 days. Her leave
year starts on 1
st
January and ends on 31
st
December 2019. Between 19
th
August 2019 and
31
st
December 2019, Kirsty works in 5 months.
Step 1 – Calculate full annual leave entitlement in days
Kirsty’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. For a full year, Kirsty is entitled to the lower of 28 days or 5.6 x 5
days (also 28 days). Therefore, Kirsty’s full annual leave entitlement is 28 days.
Step 2 – Pro-rate based on the number of months started
Kirsty works in 5 months in the leave year. This is entered into the equation in order to pro-rate
the entitlement:
28 days ×
5
12
= 11.66 days
Step 3 – Where this includes a fraction of a day, round up to the next half or whole day
(whichever is closer)
The next step is to round it up to the next half day. 11.66 rounded up is 12.0 days.
Step 4 – Convert to Hours
Kirsty works 35 hours a week over 5 days, making her average day length 7 hours. Her leave
entitlement would be 12.0 days x 7 hours. Therefore, Kirsty’s statutory leave entitlement is 84
hours.
Casual, Irregular or Annualized Hours
The statutory holiday entitlement for a worker who starts part-way through a leave year is
calculated as:
Statutory Holiday Entitlement = 5.6 weeks ×
Months Started
12
Where this is calculated in days, fractions of days should be rounded up as described above.
Example 1:
Quentin is on a contract without guaranteed hours. He started on 9
th
September 2019, and his
contract states that the leave year runs from 1
st
January 2019 to 31
st
December 2019.
Between 9
th
September 2019 and the end of the leave year on the 31
st
December 2019,
Quentin works in 4 months. Therefore, his annual leave entitlement is:
5.6 weeks ×
4
12
= 1.87 weeks
Holiday Entitlement Guidance
16
Shift Workers
The legislation does not specifically state how to calculate the full statutory annual leave
entitlement for shift workers. In our view, an appropriate practical approach is to make
calculations on the basis that shift workers are entitled to 5.6 weeks of their average working
week, restricted to 28 days’ worth of shifts.
The statutory holiday entitlement for a shift worker who starts part-way through a leave year is
calculated as:
Leave entitlement for full year ×
Months Started
12
;
rounded up to the next half or whole day worth of shifts (whichever is closer)
This is calculated in a three-step method:
1. Calculate the workers full annual leave entitlement in shifts;
2. Pro-rate based on the number of months started;
3. Round up to the next half or whole days’ worth of shift (whichever is closer).
Example 1:
Yolanda starts work on 13
th
August 2019, and her contract states that the leave year runs from
1
st
January 2019 to 31
st
December 2019. She works a pattern of 5 shifts every 8 days.
Between 13
th
August and 31
st
December, Yolanda works in 5 months of the leave year.
Step 1 – Calculate the full annual leave entitlement in shifts
Yolanda’s full statutory annual leave entitlement can be calculated based on the methodology
laid out in Section 1.4 of this guidance.
Yolanda’s average working week is calculated as
5
8
×7 = 4.375 shifts per week.
For a full year, Yolanda is entitled to the lower of 28 shifts or 5.6 x 4.375 shifts (24.5 shifts).
Therefore, Yolanda’s full annual leave entitlement is 24.5 shifts.
Step 2 – Pro-rate based on the number of months worked in
From 13
th
August 2019 to the end of the leave year on 31
st
December 2019, Yolanda works in
5 months of the leave year. This is entered into the equation in order to pro-rate the
entitlement:
24.50 shifts×
5
12
=10.2 shifts
Step 3 – Round up to the next half or whole days’ worth of shifts (whichever is closer)
The final step is to round the entitlement up to the next half or whole shift. 10.2 rounded up is
10.5 shifts.
Therefore, Yolanda’s statutory holiday entitlement for the part of the leave year that she works
is 10.5 shifts.
Holiday Entitlement Guidance
17
3. Calculating Leave for Somebody Leaving
Part-Way through a Leave Year
When workers leave employment, regulation 14 of the Working Time Regulations governs the
workers’ statutory annual leave entitlement, and any payment that must be made to a worker in
lieu of untaken leave. Regulation 14 calculates leave based on calendar days in employment
(not days spent working). This is covered by the calculations in this section which can be used
to check that a worker received the statutory minimum annual leave to which they were
entitled. Any shortfall should be paid for in lieu of untaken annual leave.
In such cases, statutory annual leave entitlement can be calculated as:
Leave entitlement for full year × Proportion of leave year in employment
This is calculated in a three-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Work out the proportion of the leave year in employment;
3. Pro-rate based on the proportion of the year in employment.
Days Worked per Week
Example 1:
Edward has been working for his current employer for more than a year, working 6 days per
week. His current leave year started on 1
st
July 2019, ending 30
th
June 2020, and he is leaving
his role on Saturday 16
th
November 2019.
Step 1 – Calculate full annual leave entitlement
Edward’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. He is entitled to the lower amount of 28 days or 5.6 x 6 days (33.6
days). Therefore, his full annual leave entitlement is 28 days.
Step 2 - Calculate proportion of leave year in employment
Between 1
st
July and 16
th
November there are 139 days. The leave year runs from 1
st
July
2019 to 30
th
June 2020 and so would include February 29
th
2020; a leap day. Therefore,
Edward is in employment for 139 days out of 366 days in the leave year, or 38.0% of the leave
year.
Step 3 –Pro-rate leave based on the proportion of the leave year worked:
Edward’s leave entitlement in the leave year up until he leaves his job is 38.0% of 28 days, or
10.7 days’ statutory leave.
Hours Worked per Week
Where workers work a fixed number of hours each week but not the same number of hours
each day, the legislation does not state how to incorporate the 28-day statutory cap when
Holiday Entitlement Guidance
18
calculating their full annual leave entitlement. In our view it is appropriate to incorporate the
cap as 28-days of the average working day.
Workers who leave employment have their annual leave pro-rated based on the time that they
spent in work as a proportion of the year. This is calculated based on calendar days in
employment, not days spent at work.
Leave entitlement for full year × Proportion of leave year in employment
This is calculated in a four-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Work out the proportion of the leave year worked;
3. Pro-rate based on the proportion of the year worked;
4. In our view, it is appropriate to then multiply by the average working day to convert into
hours.
Example 1:
Mary has been working for her current employer for more than a year, working 45 hours a
week over four days. Her leave year started on 1
st
April 2019, running until 31
st
March 2020,
and she is leaving her role on Thursday 25
th
July 2019.
Step 1 – Calculate annual holiday entitlement in days
Mary’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. She is entitled to the lower amount of 28 days or 5.6 x 4 days
(22.40 days). Therefore, Mary’s full statutory annual leave entitlement is 22.4 days.
Step 2 – Calculate proportion of leave year in employment
Between 1
st
April 2019 and 25
th
July 2019 there are 116 days. The leave year runs from 1
st
April 2019 to 31
st
March 2020 and so would include February 29
th
2020; a leap day. Therefore,
Mary is in employment for 116 days out of 366 days in the leave year or 31.7% of the leave
year.
Step 3 –Pro-rate leave based on the proportion of the leave year worked
Mary’s leave entitlement in the leave year up until she leaves her job is 31.7% of 22.4 days, or
7.1 days’ statutory leave.
Step 4 – Multiply by the average working day to convert into hours
Working 45 hours a week over 4 days, Mary’s average working day is 45 divided by 4 or 11.25
hours a day. To convert annual leave into hours, the entitlement in days should be multiplied
by the average working day (11.25 hours x 7.1 days).
Therefore, Mary’s statutory holiday entitlement in hours is 79.9 hours.
Casual, Irregular or Annualized Hours
Workers who leave employment have their annual leave pro-rated based on the time that they
spent in work as a proportion of the year. This is calculated based on calendar days in
employment, not days spent at work. Calculating the proportion of a leave year worked is done
from the start of the leave year to the end of the worker’s time in employment.
Holiday Entitlement Guidance
19
The statutory holiday entitlement for a worker who leaves part-way through a leave year is:
Statutory Holiday Entitlement = 5.6 weeks × Proportion of leave year in employment
Example 1:
Steve has been working on an irregular hour’s contract for more than a year. His leave year
started on 1
st
January 2019, and he is leaving his role on April 13
th
, 2019.
Between 1
st
January 2019 and 13
th
April 2019 there are 103 calendar days. The leave year
runs from 1
st
January 2019 to 31
st
December 2019 so does not include a leap day. This means
that Steve has been in employment for 103 out of 365 days in the leave year, or 28.2% of the
leave year.
Steve’s holiday entitlement of 5.6 weeks should then be pro-rated based on his time in
employment. Therefore, Steve’s holiday entitlement is 28.2% of 5.6 weeks or 1.59 weeks’
annual leave.
Shift Workers
Workers who leave employment have their annual leave pro-rated based on the time that they
spent in work as a proportion of the year. This is based on calendar days in employment, not
days spent at work.
The legislation does not state how to calculate the full statutory annual leave entitlement for
shift workers. In our view, an appropriate practical approach is to make calculations on the
basis that shift workers are entitled to 5.6 weeks of their average working week, restricted to 28
days of shifts.
The statutory holiday entitlement for a worker who leaves part-way through a leave year is:
Leave entitlement for full year × Proportion of leave year in employment
This is best calculated in a three-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Work out the proportion of the leave year worked;
3. Pro-rate based on the proportion of the year worked.
Example 1:
Abigail has been working for her current employer for more than a year, working a shift pattern
of 7 shifts every 10 days. Her employer’s leave year started on 1
st
April 2019, and she is
leaving her role on 5
th
August 2019.
Step 1 – Calculate full annual leave entitlement
Abigail’s full statutory annual leave entitlement can be calculated based on the methodology
laid out in Section 1.4 of this guidance.
Abigail’s average working week is calculated as
7
10
× 7 = 4.9 shifts per week.
Holiday Entitlement Guidance
20
For a full year, Abigail is entitled to the lower of 28 shifts or 5.6 x 4.9 shifts (27.5 shifts).
Therefore, Abigail’s full annual leave entitlement is 27.5 shifts.
Step 2 - Calculate proportion of leave year in employment
Between 1
st
April 2019 and 5
th
August 2019 there are 127 calendar days. The leave year runs
from 1
st
April 2019 to 31
st
March 2020, so would include February 29
th
2020; a leap day.
Therefore, Abigail is in employment for 127 days out of 366 days in the leave year or 34.7% of
the leave year.
Step 3 –Pro-rate leave based on the proportion of the leave year worked:
Abigail’s leave entitlement in the leave year up until she leaves her job is 34.7% of 27.5 shifts,
or 9.6 shifts’ statutory leave.
Holiday Entitlement Guidance
21
4. Calculating Leave for Somebody Starting &
Leaving Part-Way Through a Leave Year
Workers who are in employment for less than a full leave year have their annual leave
governed in two ways.
Whilst in employment, the statutory annual leave they can take is accrued monthly as
governed by regulation 15A of the Working Time Regulations. Under this regulation workers
accrue 1/12
th
of their total annual leave entitlement on the first day of each month (see Section
2 above).
When they leave employment, regulation 14 governs the workers’ total statutory annual leave
entitlement, and any payment that must be made to a worker in lieu of untaken leave.
Regulation 14 calculates leave based on calendar days in employment (not days spent
working). This is covered by the calculations in this section which can be used to check that a
worker received the statutory minimum annual leave to which they were entitled. Any shortfall
should be paid for in lieu of untaken annual leave.
It is important to note that if the leave year is not stipulated in a binding agreement, it starts on
the first day of employment. Therefore, it is possible that a leap day (February 29
th
) will be
included in the worker’s leave year, even if they are not still in employment over the leap day in
question.
Days Worked per Week
Statutory annual leave is calculated as:
Leave entitlement for full year × Proportion of leave year in employment
This is calculated in a three-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Work out the proportion of the leave year in employment;
3. Pro-rate based on the proportion of the year in employment.
Example 1:
Gen is working as a summer intern on a ten-week contract. He starts work on Monday 3
rd
June
2019 and finishes ten weeks later on Friday 9
th
August. For the duration of his contract, Gen
works five days a week, and his contract stipulates that his holiday leave year is the calendar
year of 2019, i.e. 1
st
January 2019 to 31
st
December 2019.
Step 1:
Gen’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. He is entitled to the lower amount of 28 days or 5.6 x 5 days (also
28 days). Therefore, his full annual leave entitlement is 28 days.
Step 2:
From 3
rd
June 2019 to 9
th
August 2019 there are 68 days. The leave year runs from 1
st
January
2019 to 31
st
December 2019 and so does not include a leap day. Therefore, Gen is in
employment for 68 days out of 365 days in the leave year or 18.6% of the leave year.
Holiday Entitlement Guidance
22
Step 3:
Gen’s statutory leave entitlement for his internship is 18.6% of 28 days, or 5.22 days’ statutory
leave.
Example 2:
Heather is working on a fixed-term contract from 15
th
July 2019 to 17
th
January 2020. She
works a nine-day fortnight for the duration of her contract, which averages 4.5 days per week.
Her contract does not stipulate a leave year, meaning that it starts on 15
th
July 2019 (the first
day of her job) and runs until 14
th
July 2020, although her employment terminates prior to that
date.
Step 1:
Heather’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. She is entitled to the lower amount of 28 days or 5.6 x 4.5 days
(25.2 days). Therefore, her full annual leave entitlement is 25.2 days.
Step 2:
Between 15
th
July 2019 and 17
th
January 2020 there are 187 days. The leave year runs from
July 15
th
2019 to July 14
th
2020, and thus would include 29
th
February 2020; a leap day.
Therefore, Heather is in employment for 187 days out of 366 days in the leave year or 51.1%
of the leave year.
Step 3:
Heather’s statutory leave entitlement for her fixed-term contract is 51.1% of 25.2 days, or 12.9
days’ statutory leave.
Hours Worked per Week
Where workers work a fixed number of hours each week but not the same number of hours
each day, the legislation does not state how to incorporate the 28-day statutory cap when
calculating their full annual leave entitlement. In our view it is appropriate to incorporate the
cap as 28-days of the average working day.
Statutory annual leave is calculated as:
Leave entitlement for full year × Proportion of leave year in employment
This is calculated in a four-step method:
1. Calculate the worker’s full annual leave entitlement;
2. Work out the proportion of the leave year worked;
3. Pro-rate based on the proportion of the year worked;
4. In our view, it is appropriate to then multiply by the average working day to convert into
hours.
Example 1:
Olivia is on a fixed-term contract running from 1
st
July 2019 to 6
th
February 2020. She works
27.5 hours over 5.5 days a week. Her contract stipulates that her leave year runs from 1
st
April
2019 to 31
st
March 2020.
Holiday Entitlement Guidance
23
Step 1 – Calculate annual holiday entitlement in days
Olivia’s full annual leave entitlement can be calculated based on the methodology laid out in
Section 1.1 of this guidance. She is entitled to the lower amount of 28 days or 5.6 x 5.5 days
(30.80 days). Therefore, her full annual leave entitlement is 28 days.
Step 2 – Calculate proportion of leave year in employment
Between 1
st
July 2019 and 6
th
February 2020 there are 221 days. The leave year runs from 1
st
April 2019 to 31
st
March 2020 and so includes February 29
th
2020; a leap day. Therefore,
Olivia is in employment for 221 days out of 366 days in the leave year or 60.4% of the leave
year.
Step 3 –Pro-rate leave based on the proportion of the leave year worked
Olivia’s leave entitlement in the leave year up until she leaves her job is 60.4% of 28 days, or
16.9 days’ statutory leave.
Step 4 – Multiply by the average working day to convert into hours
Working 27.5 hours a week over 5.5 days, Olivia’s average working day is 27.5 divided by 5.5
or 5 hours a day. To convert annual leave into hours, the entitlement in days should be
multiplied by the average working day (5 hours x 16.9 days).
Therefore, Olivia’s statutory holiday entitlement in hours is 84.6 hours.
Casual, Irregular or Annualized Hours
Statutory annual leave is calculated as:
Statutory Holiday Entitlement = 5.6 weeks × Proportion of leave year in employment
Example 1:
Usman is on a short-term contract without regular hours from 15
th
May 2019 to 8
th
November
2019. His employer does not stipulate a leave year in his contract meaning that it runs from his
start date; i.e. 15
th
May 2019 to 14
th
May 2020 although his employment terminates prior to
that date.
Between 15
th
May 2019 and 8
th
November 2019, there are 178 calendar days. The leave year
runs from 15
th
May 2019 to 14
th
May 2020, meaning that it includes February 29
th
2020; a leap
day. Therefore, Usman is in employment for 178 days out of 366 in the leave year or 48.6% of
the leave year.
Usman’s holiday entitlement of 5.6 weeks should then be pro-rated based on this time in
employment. Therefore, Usman’s holiday entitlement is 48.6% of 5.6 weeks or 2.73 weeks
annual leave.
Shift Workers
The legislation does not state how to calculate the full statutory annual leave entitlement for
shift workers. In our view, an appropriate practical approach is to make calculations on the
basis that shift workers are entitled to 5.6 weeks of their average working week, restricted to 28
days’ worth of shifts.
Holiday Entitlement Guidance
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Statutory annual leave is calculated as:
Leave entitlement for full year × Proportion of leave year in employment
This is best calculated in a three-step method:
1. Calculate the workers full annual leave entitlement;
2. Work out the proportion of the leave year worked;
3. Pro-rate based on the proportion of the year worked.
Example 1:
Christine is working a short-term contract, on a shift pattern of 3 shifts every 5 days. She
started her role on 3
rd
October 2019 and is leaving on 27
th
February 2020. Christine’s
employer does not stipulate a leave year in her contract, meaning that it runs from her start
date; i.e. 3
rd
October 2019 to 2
nd
October 2020 although her employment terminates prior to
that date.
Step 1 – Calculate full annual leave entitlement
Christine’s full statutory annual leave entitlement can be calculated based on the
methodology laid out in Section 4.1 of this guidance.
Christine’s average working week is calculated as
3
5
×7 = 4.2 shifts per week.
For a full year, Christine is entitled to the lower of 28 days’ worth of shifts or 5.6 x 4.2 shifts
(23.5 shifts). Therefore, Christine’s full annual leave entitlement is 23.5 shifts.
Step 2 - Calculate proportion of leave year in employment
Between 3
rd
October 2019 and 27
th
February 2020 there are 148 calendar days. The leave
year runs from 3
rd
October 2019 to 2
nd
October 2020 so would include February 29
th
2020;
a leap day. Therefore, Christine is in employment for 148 days out of 366 days in the leave
year or 40.4% of the leave year.
Step 3 –Pro-rate leave based on the proportion of the leave year worked:
Christine’s leave entitlement in the leave year up until she leaves her job is 40.4% of 23.5
shifts, or 9.6 shifts statutory leave.
