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Zero Hours Holidays

Jovita Paraskevopoulou
  • Edited

Hi

 

We are trying to find out how the system calculates the zero hours staff holiday allowance. With the new guidance coming in from HMRC we need to ensure that we are compliant.

 

Can you please confirm how the system calculates the zero hours holiday entitlement?

 

Kind regards,

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Alison Barlow

Hi @...

On 25th July, 2022 the Supreme Court ruled that the only lawful way to calculate holiday for Variable Hours (or Zero hours) workers is to use the Weekly Calendar Method of calculating holiday allowance.  Employees that are assigned to the Flexible Employment Status will automatically have their holiday calculated in this way.  Details of how the calculation works can be found here.

You may have some employees assigned the Casual employment type.  Employees attached to this employment status have their holiday pay calculated on the 12.07% method, which has now been ruled unlawful.

To find out which Employment Type your employees have, you can use the custom reporting function in the HR Module by selecting Contract within the Employment details section.

If you have any Casual employees, you should reconsider their holiday calculations.  Further information will be published giving details of how to transfer employees from Casual to Flexible employment types.

Kind Regards

Ali

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