How do I calculate holiday pay for casual or zero hours employees in my Out of School Club?

How do I calculate holiday pay for casual or zero hours employees in my Out of School Club?

April 29, 2023

This weekend, we’ve seen several messages on Facebook groups about the issue of calculating holiday for zero hours or casual employees now that we are not allowed to use 12.07% of hours worked.

How does it need to be done

Currently we have to review the pay in the 52 weeks prior to the annual leave being taken. I know that sounds unfair and don’t shoot the messenger but we can’t use 12 weeks or similar we have to go back 52 weeks.

Once we have 52 weeks of work (or at least all of the weeks they have worked if less than 52) we need to find an average.

Once we have an average week’s pay that is what they will receive when they take one of their 5.6 weeks annual leave. The statutory 5.6 weeks includes any entitlement to bank or public holidays.

So let’s do a worked example.

Betty works on a casual zero hours basis for the ABC OOSC in Redditch. She wants to take a week’s annual leave. Her employers holiday year is 1st September to 31st August. She requests the first week of May 2023.

The employer agrees to pay Betty 1 weeks annual leave and calculates this by finding the 52 weeks that she has worked before w/c 1st May. There have been many weeks when Betty did no work so they end up in March 2022. Once the employer has 52 weeks of pay in their spreadsheet they find an average by dividing the total pay received by 52.

Betty receives this week pay for her annual leave in May 2023. This comes from her entitlement to holiday pay of 5.6 weeks including bank and public holidays.

If you need any assistance with any aspect of managing HR in your Out of School Club please do give us a call on 01527 909436.

You may find it useful to check out this video on our YouTube Channel.

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