{"id":10341,"date":"2023-07-13T21:26:02","date_gmt":"2023-07-13T20:26:02","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=10341"},"modified":"2024-01-30T13:22:17","modified_gmt":"2024-01-30T13:22:17","slug":"holiday-pay-to-company-employees","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/holiday-pay-to-company-employees\/","title":{"rendered":"Do I have to provide holiday pay to my employees?"},"content":{"rendered":"

Hiring your first employee(s) is an exciting part of business growth, but it can be a daunting task, especially when it comes to getting to grips with the various laws concerning employment.<\/p>\n

Holiday leave, or annual leave as it is often referred to, is arguably one of the most valuable rights to an employee, so it\u2019s imperative that you understand their legal entitlement and ensure that you are correctly allocating holidays and pay.<\/p>\n

In this post, we\u2019ll take a look at whether you have to provide holiday pay to all company employees, and explore the legalities you should be aware of as an employer, to ensure compliance and a positive workplace culture. Let\u2019s get started.<\/p>\n

Who is entitled to holiday pay?<\/h3>\n

Anybody you employ who is classed as a \u2018worker\u2019<\/a> is legally entitled to 5.6 weeks (equivalent to 28 days) of paid holiday each year – known as statutory leave entitlement.<\/p>\n

This entitlement is inclusive of agency workers, workers with irregular hours, and workers on zero-hour contracts.<\/p>\n

Part-time employees<\/h4>\n

Part-time employees are entitled to a pro-rata amount of paid holiday based on their working hours.<\/p>\n

This means that although they have equal entitlement, their annual leave will amount to fewer than 28 days. For example, if they work 3 days a week, they must get at least 16.8 days\u2019 leave a year (3 \u00d7 5.6).<\/p>\n

Irregular hours<\/h4>\n

For those working irregular patterns, such as shift workers or term-time staff, holiday pay is given for each hour they work. This can be calculated using GOV.UK\u2019s holiday entitlement calculator.<\/a><\/p>\n

Are there any limits on statutory leave?<\/h3>\n

While full-time employees are entitled to a minimum of 5.6 weeks of annual leave, this entitlement is capped at 28 days. This means that even if an employee works more than their full-time hours i.e. 6 days a week, they are still only entitled to 28 days paid holiday.<\/p>\n

  • \r\n Employment law basics<\/span><\/a>\r\n <\/li>\r\n
  • \r\n 5 ways to stop employees from quitting<\/span><\/a>\r\n <\/li>\r\n <\/p>\n

    As an employer, you can choose to offer more leave than the legal minimum.<\/p>\n

    This additional leave does not need to apply the same rules as the standard statutory leave. For example, you may choose to specify a certain timeframe before an employee becomes entitled to extra leave, such as an additional 3 days’ holiday each year after three years of service has been completed.<\/p>\n