An employee handing in their notice can be a particularly challenging time. It can be disappointing to lose a colleague you’ve built up a relationship with, and they’re probably an experienced and valuable asset to your team.
Then there’s the inevitable questions around their holiday entitlement:
Not all part-time employees are created equal. In fact, even two employees that work the exact same number of hours and days can make it difficult to give them both a fair holiday allowance. In this article, we explore the potential pitfalls around this, and illustrate the best way to balance bank holidays for part-time employees.
Imagine a company with three employees: one full-time (Fred) and two part-time (Mary and Tony). Each employee is entitled to 20 days holiday per year if they work full time – this is their Full Time Entitlement. In addition to those 20, they also get bank holidays, Christmas, Easter, etc. We refer to these as public holidays and there are 8 of them in England and Wales each year.
Fred works full-time, 5 days a week, so gets his full entitlement of 20 days holiday. He also gets all 8 public holidays – in The Holiday Tracker, we show these on his calendar in light grey:
So essentially, Fred gets 28 days holiday, but 8 of the days are fixed dates.
Next, we have Mary and Tony. Both work four days a week, but Mary works Mon-Thu, and Tony works Tue-Fri. Because they work 80% of a normal week, they both get 80% of their Full Time Entitlement, which gives them 16 days holiday instead of 20.
However, Because Mary works on a Monday, and most of the public holidays fall on a Monday, she also scores for 7 of the 8 public holidays:
So essentially, Mary gets 23 days holiday (16 + 7), but 7 of
the days are fixed dates.
Because Tony doesn’t work a Monday, he misses out on a lot of those extra public holidays, and only gets 4 of the 8 public holidays:
So, Tony gets 20 days holiday (16 + 4), but 4 of the days
are fixed dates.
This means Tony gets
3 days less holiday than Mary. Unfair.
To balance this fairness, you can give part-time employees a
pro-rata of the public holidays and then make them use their holidays to cover
the public holidays they should be working.
80% of 8 is 6.5 (rounded up to the nearest half-day), so we add that to
the 16 days Mary and Tony get, giving them 22.5 days.
This is the key point
here. Now, Tony and Mary BOTH get 22.5
days holiday. Fair.
Now because there are 7 public holidays that fall on days
that Mary usually works, we take 7 days off her entitlement leaving her with
There are 4 public holidays that fall on days that Tony usually
works, so we take them off his entitlement, leaving him with 18.5.
But remember, they BOTH get 22.5 days holiday, it’s just
that 7 of Mary’s holidays are fixed dates, while only 4 of Tony’s are fixed. It’s no different to the fact that Fred (who
works full-time) gets 28 days holiday, but 8 of those are fixed.
If you use The Holiday Tracker to manage your employees’
annual leave, then each employee’s entitlement is already calculated for
you. Even if they work part-time, start
working in the middle of a calendar year and switch from working 3 days, to 4
days and back to 3 days again. No matter
how complicated an employee gets, the correct entitlement is calculated
automatically. Sign up for a 7-day free
trial, or book a demo.
Interested in simplifying your holiday process, saving time and hassle at all levels of the business, and reducing your sickness absence to boot? Read on to find out why it could be worth ditching Excel to manage your annual leave. Continue Reading »