This was the first response that was posted:
“So if she was full time working 40 hours a week she'd be entitled to 25 days, which means she's working 16/40 = 0.4 x 25 days = 10 days annual entitlement based on hours worked or you can calculate based on the number of days worked so 3/5's of the annual entitlement (assuming a 5 day week) = 15 days out of the 25 awarded to full time staff.
This is where the annomalies usually creep in and where companies struggle with consistency.
Then you have that she will have worked 40 out of the 52 weeks a year, so you end up with either 7.69 days using the hours format or 11.53 using the days.
I've seen both used in workplaces, and what has to be clear is on what basis everyone is entitled to annual leave, is it the number of hours or number of days worked.”
And the follow up post to this was:
“Wow, I knew it was complex, but thanks very much! I think I'll use days, as that's what everyone else is on.”
It turns out that this original answer was wrong and an alternative suggestion was:
“As the employee started work on 21 May 2007, she will have worked for 32 weeks by the year end, so her actual entitlement will be 9.23 days for 2007.
15 days entitlement per annum, divided by 52 weeks of the year, multiplied by 32 actual weeks in employment.”
The person that posted the original answer then replied with:
“whoops, apologies, that will teach me for using the outlook calendar, must be some double counting as I've tried to scroll across the months - I should have just dug out the old paper copy instead!!”
Does this kind of situation sound familiar? All too often it can be a real headache for Business Owners and HR Managers to calculate these kinds of numbers and it can take a lot longer than it should.
So what can you do about it? Well, you have a number of options which are detailed below:
- Firstly, you could use an online HR or business forum like the lady above. This can often work well for people that have access to an active community and can rely on other people to work things out but this can become a problem if they take a long time to respond, also if you have high staff turnover the community members could soon become frustrated with constant questions from you.
- A second option would be to create a spreadsheet with all of the relevant calculation details in it. All you would need to do is fill in the blanks such as full-time annual allowance, total days/hours worked etc. This option is fine if you are comfortable using spreadsheets but still involves some form of manual intervention per employee.
- Another option is to use an online tool such as the one provided by the UK Government - https://www.gov.uk/calculate-your-holiday-entitlement. This is a great online tool that is easy to use and follow but does require you to go through each step of the questionnaire for every single employee which could become tedious.
- The final option would be to use an online leave management system that already has pro-rata holiday entitlement calculation already built in. In this case you would simple enter your employee details, select their work pattern such as 4 days on 3 days off for a part-time employee and then choose their employment start date. The system will then instantly calculate their pro-rated holiday entitlement based upon the pre-configured full-time annual holiday allowance - simple.
Do you get similar headaches when trying to work it all out? What other headaches do you have when it comes to leave management, we’d love to hear your thoughts.