We are a new company looking to employ people on a casual basis, as the hours required to work, will depend on 1) when the workers are available 2) when the customer requires their services. We will be issuing a zero hour contract to each worker. Please can you advise me what if, any holiday entitlement they are due.
Yes all workers are entitled to a minimum holiday entitlement of 5.6 weeks.
For casual or irregular working patterns such as in zero hours contracts, it may well be easiest to calculate the holiday entitlement that accrues as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07% of the hours worked. The 12.07% figure is calculated as follows:
5.6 weeks holiday, divided by 46.4 weeks (52 weeks – 5.6 weeks) multiplied by 100 = 12.07%
(The 5.6 weeks have to be excluded from the calculation as you would not be present during the 5.6 weeks in order to accrue annual leave.)
For example, if your employee had worked 10 hours, they would be entitled to 72.6 minutes’ paid holiday:
(12.07% x 10 hours = 1.21 hours = 72.6 minutes)
(Article reviewed February 2018)