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Childcare Counsel: Advice on calculating holiday pay

Hannah Francis-Hopkins, solicitor at Morgan LaRoche, on calculating holiday entitlements for part-year workers.

All UK workers are entitled to 5.6 weeks’ paid leave each year. The law states that a worker should be paid a week’s pay for a week’s holiday. The rules can be tricky, especially for staff who work for part of the year.

Nurseries can often employ workers on irregular hours, such as several hours one day, no hours the following day and long hours the next day, with these changing each week. It would be difficult to know what a week’s leave and pay would be in these cases.

Employers have calculated leave entitlement for these workers using the percentage method (12.07 per cent), but a Supreme Court case has now made this calculation more complex.

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