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Pro rata holiday entitlement for short term contracts.
#1
Archaeology employs a lot of people on short term contracts, it is thus important that these individuals are paid their pro rata annual leave entitlement at the end of the contract, minus what they have taken as leave of cause.

Since 1998 everyone working a full 5 day week is entitled to 28 days annual leave or the pro rata equivellent. Contrary to popular opinion there is no statutory entitlement to bank holidays although employers can, and many do, require you to take 8 days of your annual leave entitlement on bank holidays.

So, to work out what a temporary employee needs to to be paid in holiday pay at the end of the contract you simply work out their pro rata holiday entitlement minus what days they have taken as annual leave, including any bank holidays.

What an employer should not do, and many do do is deduct all the bank holidays from the annual leave entitlement and work out their employees pro rata entitlement on 20 days annual leave minus any annual leave days that do not fall on bank holidays. In short you can't deduct bank holidays thst have not beem taken from an employees overal holiday entitlement.

I know employers who do this and it can potentially leave people short on holidsy pay by up to 2.3 days.

Has anyone else come across this or is there anyone who is not aware of this?
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#2
Crocodile Wrote:I know employers who do this and it can potentially leave people short on holidsy pay by up to 2.3 days.



And again... I ask... can you send me details of the employers who do this. I can ensure this is checked.
Once again my details are : info@bajr.org or message me privately and in confidence... with the details...

I am not aware of this...
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#3
It is not specific to archaeology. I know small companies that make this mistake. I just thought people should be made aware.

Many people think bank holidays are statutary. Many people think that annual leave is worked out on 20 days. Some people think that companies lay people off at Chrstmas to avoid paying holiday pay but this won't effect your pro rata statutary entitlement. It may effect your holiday entitlement if, and only if your employer gives you extra days on top of the stat 28 days and your contract makes it clear that these days are not earned in the same way as annual leave.

Nothing to sort out. I'll sort it Wink

Thanks
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#4
Thank you for this information. I am glad to hear there are no archaeological companies you know of who do this.
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#5
I have suspicions but I don't know.

It's shocking that people are so unaware of their entitlement. Mind you it can go the other way, with people thinking they are being cheated when they are not.

I had one girl telling me that she had been laid off for Christmas so that they didn't have to pay her. It transpired that like a lot of companies they shut down for a coulple of weeks over Christmas and she had simply used up all her holiday entitlement before then. That said, informing employees that they should save statutary for bank holidays and shut downs is not a bad idea
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