Zero Hours Contracts & Holiday Entitlement
Posted on 13th August 2018 at 15:13
Half of people on zero hours contracts (ZHC) and two in five people on temporary contracts wrongly believe they are not entitled to paid holidays, Citizens Advice (CA) reveals this week.
In the last financial year, almost 185,000 people got help from CA on employment issues - with 10,000 cases specifically about paid holiday. Over the same period the CA webpage on paid holiday had 260,000 visitors.
One man who was told by his employer that night workers are not entitled to paid holiday has incorrectly missed out on paid holiday of £8,900 calculated over a five year period. A woman who worked in the sales sector, was told that she could only take holiday if she met her sales targets, which is unlawful.
So in respect of ZHCs, the statutory minimum holiday entitlement of 5.6 weeks will accrue pro rata to the number of hours and days worked, but peopleworking under a ZHC are unlikely to have regular hours and may not know in advance for how long a period of work will last. So how do you calculateholiday entitlement in these circumstances?
5.6/(52-5.6) x 100 = 12.07%
Phew! Why this calculation? Because you are taking into account the statutory minimum holiday entitlement and weeks in the year to reach this figure and it's felt to be a fair way for those working variable hours. It would be different if your annual holiday entitlement is greater than the statutory minimum.
As an employer, you must allow the individual to take a period of paid holiday (subject to your holiday policy and rules) or pay an amount in lieu ofthe accrued holiday at the end of each period of work.
A word of caution here, you may create an employment relationship which remains in place even when the individual is not provided with work and soemployment rights are accrued. If you are happy with that then a differently worded contract may be more appropriate. Remember, there is no legal definition of a ZHC and it does not confer any special status on an individual.
So, if you haven't reviewed your employment documentation recently then it would certainly be worth doing so to make sure it reflects what is actuallyhappening in your workplace. A ZHC should no longer seek to prevent the individual from working for another employer or require the worker to obtainyour permission before working for another employer.
As always the devil is in the detail and happy to help with your review.
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