Can you clarify how to calculate annual leave entitlement for employees who work irregular hours?Posted in : First Tuesday Q&A ROI on 3 July 2018
Annual leave accrues to an employee on the basis of the hours and days worked by that employee. The Organisation of Working Time Act 1997 sets out three ways the entitlement to annual leave may be calculated:
- four of the employee's normal working weeks in a leave year in which the employee works at least 1365 hours
- 1/3 of a working week per calendar month in which the employee works at least 117 hours
- 8% of the total hours worked by an employee in a leave year (but subject to a maximum of four working weeks)
Employees covered by two or more of these methods are entitled to rely on whatever reference period results in the greater amount of annual leave.
The 8% method is normally used for
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