Q&As

Where an employee works compressed hours, ie the same number of hours as a ‘normal’ full-time employee over fewer days, how should the employer calculate holiday entitlement, and how should the employer treat bank holidays if they fall on a day when the ‘compressed hours’ employee does not usually work?

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Published on LexisPSL on 01/03/2019

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Where an employee works compressed hours, ie the same number of hours as a ‘normal’ full-time employee over fewer days, how should the employer calculate holiday entitlement, and how should the employer treat bank holidays if they fall on a day when the ‘compressed hours’ employee does not usually work?
  • Calculation of holiday entitlement
  • Bank holidays

Where an employee works compressed hours, ie the same number of hours as a ‘normal’ full-time employee over fewer days, how should the employer calculate holiday entitlement, and how should the employer treat bank holidays if they fall on a day when the ‘compressed hours’ employee does not usually work?

Calculation of holiday entitlement

The position of a worker working compressed hours will be the same as that of a ‘normal’ full-time worker, ie they will be entitled to 5.6 weeks' leave each ‘leave year’, made up of:

  1. a basic entitlement to a minimum of four weeks' annual leave each leave year, implementing the right to annual leave under Directive 2003/88/EC, the Working Time Directive

  2. an additional entitlement to 1.6 weeks' annual leave each leave year, which is a right under domestic legislation only

Statutory paid holiday entitlement is limited to 28 days. Therefore, a worker working six days per week is entitled not to 33.6 days' leave (5.6 x 6), but only to 28 days' leave.

For further information, see Practice Note: Holiday—Statutory holiday entitlement.

If a worker working compressed hours works three days a week (and they work the same number of hours on each of those days), their statutory annual holiday entitlement will be:

  1. a basic entitlement of four weeks' holiday at three days a week (ie 12 days a year), plus

  2. an additional annual leave

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