With a significant Supreme Court judgement set to reform how part time workers’ holidays are calculated – and a Government consultation on this currently underway – employers must ensure they are on top of this fast-changing situation.
Here, we look at the current situation and how Employers should review their current policies and procedures ahead of any further changes.
Part-time workers are set to see changes in their holiday entitlement, which employers must ensure they are aware of to stay on top of their legal obligations.
Following a recent judgement from the Supreme Court, a consultation over holiday entitlement for part-year and irregular hours workers is being launched.
The Harpur Trust v Brazel case concerned the calculation of holiday pay and entitlement of a permanent part-year worker on a zero-hours contract. The judgment held that the correct interpretation of the Working Time Regulations 1998 is that holiday entitlement for part-year workers should not be pro-rated so that it is proportionate to the amount of work that they actually perform each year.
Part-year workers are entitled to 5.6 weeks of statutory annual leave, calculated using a holiday entitlement reference period to determine their average weekly pay, ignoring any weeks in which they did not work.
As a result of this judgment, they are now entitled to a larger holiday entitlement than part-time workers who work the same total number of hours across the year.
Employers are urged to take part in the Government consultation, ahead of a probable overhaul of their part-time worker holiday policy – but here, we look at the current situation and how to ensure you are compliant in meeting your obligations.
Current entitlement
Under the Working Time Regulations 1998 (WTR), all workers (this includes employees) are entitled to 5.6 weeks’ annual leave. For someone who works five days a week, this is 28 days. 28 days is the maximum statutory annual leave that must be given. Complications have arisen over the years in calculating this for those who work for less than five days a week, or less than 52 weeks in a year.
For part-time workers, working 52 weeks a year but less than five days, the solution is simple: their weekly days or hours worked are multiplied by 5.6 to get their yearly entitlement. For those who are not required to work for 52 weeks in the year, but are permanently employed (i.e., not on a fixed term contract), things are less clear. In the Harpur Trust v Brazel judgment, the Supreme Court ruled that part-year workers must be given 5.6 weeks annual leave, but this cannot be prorated in accordance with the number of weeks they work in a year – consultation is now underway by the Department of Business, Energy and Industrial Strategy (BEIS).
Pro-rated holidays
A part-year worker is anyone who doesn’t work every week of the year, such as someone on a term-time only contract. A part-time worker is anyone who works every week of the year but on fewer days or hours than a full-time colleague. A part-time pattern might mean they work three days per week instead of five, or 4 hours per day instead of 8, but they work 52 weeks per year.
It is important to understand the difference between a part-year worker and a part time worker as the holiday calculation is different for each. Annual leave can be pro-rated for a part-time worker. This is anyone who works 52 weeks per year but on less days/hours than a full-time colleague. For example, someone who works three days per week instead of five. This person would be entitled to 16.8 days’ annual leave instead of 28 days (5.6 x 3 = 16.8 days). Annual leave can also be pro-rated for fixed-term contracts, where there is a clearly agreed date for when the employment will end.
For example, if an employee is contracted to work for three months only to cover a busy period (e.g., summer holidays), their holiday entitlement will be 1.4 weeks. This is worked out by dividing 5.6 by 12 months then multiplying by three months (5.6/12 x 3 = 1.4wks). Finally, annual leave can be pro-rated for new starters and for leavers (e.g., someone who starts and/or leaves during an annual leave year), so that the entitlement is only based on full months worked under the contract. However, the Supreme Court judgement was clear that the amount of leave for part-year workers under a permanent contract must not be pro-rated to be proportional to that of a full-time worker. Therefore, zero-hours, variable hours, casual, agency and term-time staff should all get 5.6 weeks’ leave per year. What will the current Government consultation reveal?
Calculating leave entitlement and holiday pay
All employees are entitled to 5.6 weeks paid annual leave. As such, there should be no need to do any further calculations to work out accrual or entitlement (unless for part-time or fixed-term staff). The percentage method (where 12.07 per cent of the hours worked / pay received is used to determine holiday entitlement and pay) should not be used for any holiday calculations.
You must have measures in place to keep track of what entitlement has been used so far in the holiday year (in the same way you might do for full-year staff) and ensure everyone takes their full 5.6 weeks’ leave. Holiday pay should be paid at the normal rate of pay. Where weekly pay varies (for example, for workers on a zero-hours contract), you should calculate holiday pay based on an employee’s average weekly earnings over the previous 52 paid weeks. The reference period must only be weeks for which the worker was actually paid.
It must not include weeks where they were not paid as they did not work. It should also not include any weeks where “normal” pay was not received, for example, because they were on sick leave and they received sick pay.
You can go back for a maximum of two years (104 weeks) to obtain the relevant 52 weeks’ pay data.
In the event that the employer does not have 52 weeks data from the previous 104 weeks, then the reference period becomes the number of weeks’ worth of data available.
Example calculation – Average weekly pay
Add earnings from previous 52 working weeks / 52 = average weekly pay Pay for holiday period = average weekly pay x no. weeks’ holiday For example, if an employee’s average weekly pay is £100 and they want to take 2 weeks’ holiday: £100 x 2 = £200 holiday pay. This calculation should be re-done at the beginning of every holiday period.
Rolled up holiday pay
Government guidance states that holiday pay should be given at the time when annual leave is taken and that an employer cannot include an amount for holiday pay in the hourly rate. It also states that if a current contract still includes rolled-up pay, it has to be re-negotiated. In the past, employers could try to use rolled up holiday pay by being transparent with employees and ensuring they are given time off. But, employees could still raise a claim if they think they had been prevented from taking their annual leave.
However, since rolled up holiday pay typically uses the 12.07 per cent method to calculate accrual, the Supreme Court’s judgment that this should not be used adds extra risk. As such, it is best to reach alternative agreements with affected staff and ensure they are given 5.6 weeks’ annual leave with the pay for this leave given at the time the holiday is taken.
Holiday calculations – resolving errors and new approaches
Payment in lieu
Payment in lieu of statutory minimum entitlement (5.6 weeks) is not allowed unless employment is terminated. You must let employees take the full 5.6 weeks leave within the current holiday year and pay for leave at the time it is taken.
Backpay for previous years
If you have been calculating pay incorrectly (e.g., by using the 12.07 per cent method rather than taking a 52-week average), it is possible that you may owe employees compensation for underpayment of holiday pay. You can proactively take steps to provide the employee with backpay. Some employers may try to take the “wait and see approach” and let employees raise this, but this might not be possible for unionised environments since the union will likely be in contact to campaign on behalf of the employees they represent to get backdated pay. It is important to remember that not taking action could significantly increase the risk of unlawful deduction from wages claims being raised by employees.
When calculating what backpay is due, you will need to assess what was paid using the 12.07 per cent method and what should have been paid by taking a 52-week average; the compensation for underpayment of holiday pay will be the difference between these two figures. Where an employee or union request that backpay is given for previously underpaid holiday, it is likely you will have to do so, otherwise you are at significant risk of receiving an unlawful deduction from wages claim. Usually, an unlawful deductions claim must be paid within three months of the last deduction, or in this case, within three months of the last holiday pay payment.
But, given the scope of the situation, tribunals might allow employees to bring a claim within three months of the end of the holiday year in which holiday pay was calculated incorrectly.
The tribunals claims backlog is significant at present. Additionally, there are the risks of disrupting employee relations, thus reducing productivity, engagement and satisfaction, as well as action from trade unions.
Consequences of failing to give sufficient holiday
Not providing the full 5.6 weeks entitlement will be in breach of the law and is not recommended.
In this situation, there is a significant risk of tribunal claims, industrial action, employee grievances and resignations. There could also be wider implications for the organisation’s reputation with the general public.
Alternatives to part-year contracts
Term-time, variable-hours and zero-hours contracts, like any other type of contract, have their pros and cons. It is useful to consider why you are introducing a part-year contract in the first place. Is it because you only need someone to cover busy periods, like summer or Christmas, or term time? If so, a fixed-term contract or annualised contract may be a more effective alternative. If you want to continue having staff available year-round, and only call on them as and when needed, zero-hours and variable-hours agreements may be beneficial but consider all the terms involved. As such, it is worth understanding each of the different types of contracts and considering which is most appropriate for your workers.
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here. If you would like to receive our newsletter, please sign up here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, and small businesses, from recruitment through to exit.
Support Worker – Cerebral Palsy & Epilepsy – Littleborough, OL15
MAIN SCOPE OF THE JOB:
We are looking for a dedicated support worker with a genuine caring profile and good sense of humour with the ability to learn and implement prescribed therapy to support our young adult client who has cerebral palsy and epilpesy. He lives in his own home and requires 2:1 support with his personal care needs, social integration with his peers, community care and rehabilitation, and participating in tasks of daily living as much as he possibly can.
He is a sociable young man, is non-verbal, with a keen sense of humour, and likes to go out in the community. He is a wheelchair user and has an adapted mobility car – as such driving is essential.
You will work flexibly to support our client in managing aspects of his daily life, both at home and in the community to enhance his quality of life. Working in accordance with his therapists and care support plan, the role is focussed on maximising our client’s independence and wellbeing by meeting his care, support and rehabilitation needs; creating a stimulating environment whilst ensuring his safety and minimising risks; providing companionship and encouragement to help him achieve his goals.
HOURS:
Working days: Monday to Sunday – 7am to 7pm (option for split shifts is negotiable).
Working hours: combination of day shifts and sleep in shifts
PAY:
£11.58 per hour Monday to Friday day shifts
£13.32 per hour Saturday and Sunday day shifts
£23.18 per hour Bank Holiday day shifts
Sleep in shift calculated as £56.56 plus 5 hours at the day rate (weekday/weekend)
MAIN DUTIES & RESPONSIBILITIES:
GENERAL:
PERSON SPECIFICATION:
Essential Requirements:
Desirable:
Job Types: Part-time, Bank
Salary: £11.58-£23.18 per hour
Day range:
Shifts:
Ability to commute/relocate:
Click here to apply for this position
Application deadline: 31/10/2023
Reference ID: SWLUF-092023
A Guide to Training Agreements
Changes happen all the time, everywhere, anywhere and we have to be prepared to update skills and keep them relevant. Working in the care sector it is vital that employees are trained to an acceptable standard, both for mandatory training but also for specific training that their employer needs.
There is a cost to training, not only financial but in time to attend and complete training, as well as the learning curve to put into practice what is learnt. Employees come and go. How do you capture the financial investment in their development, skills and knowledge? When an employee has worked with a client for a fair amount of time after the training, it is a given that they will have used their investment in training to improve working with the client and making a difference to that person’s care and life. How much can you claw back of the financial costs and when?
Can you recoup the training expense when they leave?
Recouping or ‘clawing back’ training expenses is not an easy decision. If you intend to do so, make sure that your employee knows that this is the expectation. Often the employee contract will detail what and when costs will be recouped. It is a good idea to discuss recouping costs early in the employment relationship, even at the interview stage. Most people want to be developed and are quite happy that they may need to repay costs if they leave.
It should not come as a surprise.
When employees need to attend training that is paid for by you, they should be asked to sign an individual training costs agreement detailing the name of the training course, the training provider, the date of the training and an estimate for the cost of the training. This allows for transparency so that the employee is aware of the investment and their obligations to repay should they leave.
An individual Personal Training Record should be maintained and updated for each new training course or refresher training that is completed.
What training should be repaid?
Every Employer will have a different view on what should be repaid. Below is our view of what might be seen as reasonable to recoup.
a) Mandatory training
Keep a training record with a list of mandatory training courses. A training plan for individual Employees should be discussed with them at induction and periodically during 1-2-1 meetings or supervisions. Where the job requires specific training that is set out in a job advert, the relevant certificates/evidence must be seen and recorded. A manager, team leader or family member can be responsible for this activity, or the HR provider is the ideal person to keep such records. If mandatory training is required to be repaid on leaving, this must be clear at the start of employment. However, since attracting and retaining care staff is challenging, many Employers take a view that some training will not be clawed back.
b) Additional training
What additional training courses relevant to the Employer’s specific needs are required? Prior to training being booked, discuss the training requirements with the Employee as well as the commitment that is made for the investment and for repayment. These discussions could take place at induction for new starters or during 1-2-1 meetings or supervision for existing staff. The overall training plan for an individual should include additional training, with a plan in place for when it needs to be carried out. Conduct a training needs analysis periodically to keep up to date with training requirements as they may change from time to time.
When will training take place?
Consideration must be given to whether training should take place during the probationary period or after employment is confirmed. The probationary period is a trial for both the new starter and the Employer. If neither want to continue the relationship and training has already taken place, will you, as Employer, claw back the cost of training?
Take time to consider training agreements and talk to your employees about its implementation.
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here.
If you would like to receive our newsletter then sign up here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, from recruitment through to exit.
What should an employer know when there is an expectation that employees need to drive for their jobs.
Set expectations
Employers in the UK, whether an individual or large or small business, who expect their workers to drive during the course of their employment, must comply with the necessary legal requirements. This guidance aims to outline the key steps to take when checking employees’ driving licences and provides an overview of the rules for driving in the UK.
We recommend that you set expectations at the start of employment by including in your Induction a topic such as: “Driving the employer’s vehicle and driving your own vehicle on the employer’s business”.
If it is essential that your employee drives as part of their job role, this must be stated in their contract. The employee must be made aware of the consequences should they be disqualified from driving. If they are disqualified, how will it affect their job role? Before any action is taken consult with an HR professional or employment law solicitor.
It is important to check the status of the driving licence before an employee is permitted to drive the employer’s vehicle to ensure that the insurance is not invalidated.
Where an employee is required to drive extensively during the course of the job role, encourage them to undertake defensive driving courses or other relevant training to enhance their driving skills and safety awareness. You may wish to offer them time off for the training, or even contribute towards the cost of training as part of their development.
In this document we will refer to “employee”, but the guidance applies to people who in employment status are known as “workers”.
Checking the employee’s driving licence
Rules for driving in the UK
To summarise
As an employer it is vital to follow the guidelines to maintain legal compliance and prioritise the safety of your employees as well as other road users.
Driver risk assessments should be carried out and staff trained. Contact health and safety or other professionals who are competent for further information.
This guidance is for general information and does not constitute legal advice. For specific legal advice do consult a qualified professional.
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here.
If you would like to receive our newsletter then sign up here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, from recruitment through to exit.
Night workers – what employers need to know
Cecily Lalloo, MD of Embrace HR, independent specialist provider to the complex care sector, discusses how to properly support night workers in their roles, to protect their own wellbeing while enabling them to deliver the best possible care to those who need it.
Night work is commonplace in all aspects of healthcare, and is essential in delivering the care that is needed to people recovering from life-changing injury or in supporting them with ongoing complex needs.
And while this is an accepted and necessary way of working in care, to provide a 24-hour continuous service, the potential impact on health and safety must not be lost by employ-ers of those workers tasked with delivering care.
Employers have to ensure they comply with legislation in this area, to prevent fatigue, burnout and illness arising from employees who are not properly supported.
Risk assessments must be carried out as employers have a legal duty to assess the risks to the health and safety of employees (and risks to the health and safety of persons not in their employ-ment) to which they are exposed while they are at work. In the UK the Working Time Regulations 1998 sets out maximum working time which must be – supported by efficient management of employ-ees, to ensure night workers can achieve acceptable levels of sleep and rest, despite the disruption to their circadian rhythms, and protect their health and wellbeing.
Here, we look at some of the main issues employers need to consider.
Risks for night workers
For people who work nights, or those who work unsociable or very long shifts, these hours are at odds with the more accepted working patterns of working during the day.
Our circadian rhythm, which expects we will be awake during the day and sleep at night, can be disrupted by night work – and sleep is essential to mental and physical restoration to enable us to work effectively. It allows the body to recover from physical or cognitive ac-tivities and helps to protect against fatigue and anxiety.
However, for those working during the night, this is something that is less easy to achieve, and can lead to illness or the exacerbation of existing conditions.
Chronic fatigue resulting from night work is associated with conditions including chronic gastritis, peptic ulcers and cardiovascular illnesses such as hypertension and coronary heart disease. A UCL study found that working more than 11 hours places a person at a 67 per cent higher risk of developing heart disease compared with those who work a typi-cal seven or eight hour day.
Furthermore, fatigue or poor sleep can lead to a greater risk of errors or accidents, which could be of huge consequence when caring for individuals with acute needs.
Legislation supports night workers in being able to access regular medical checks, and if a night worker becomes ill and there is clear evidence to link their symptoms with night work, the employer must reassign the worker to other duties.
But in helping to reduce the chances of workers becoming ill or their wellbeing being com-promised, employers can take pre-emptive steps in protecting workforce and their wellbe-ing.
Risk assessments are a key part of that, and can ensure the workers tasked with deliver-ing care are able to properly protect those they are supporting.
Risk assessments
By properly managing risks and identifying the hazards of night work and helping to miti-gate them, workers are better supported to do their jobs and deliver the often life-saving care that is needed.
Employers must commit to addressing risks and protecting the safety, health and wellbe-ing of workers – which, as well as being best practice, can also help reduce sickness and absence, reduce staff turnover, reduce errors and accidents and increase productivity. Night works should be offered an annual night workers assessment.
A four stage process should be implemented:
1. Establish a system to manage the risks
2. Assess the risks in your workplace
3. Take action to reduce the risks
4. Review arrangements regularly.
A person must be appointed within the organisation to oversee this, and it is vital that workers are consulted and involved in any decisions about shift work.
Factors including fatigue should be prominent in a risk assessment, as well as other as-pects which we know affect healthcare workers such as workload, work activity, duration of shifts, rest breaks within and between shifts, mental and physical demands and welfare.
Risk groups among night workers – such as pregnant workers, younger and older workers, those with existing health conditions and new and temporary workers – should have their particular circumstances taken into account.
Monitor and review
Implementing the four step risk assessment process will reduce the likelihood of potential problems, but cannot always prevent them – which is why workers should be encouraged to report any problems as soon as possible
Supervisors have a role in identifying and reporting problems and if workers are concerned about their personal health, they should be encouraged to visit their GP.
Sometimes it will be necessary for the business to alter the shift schedule or make changes to the work environment. In this case, workers should be consulted in advance on the proposed changes.
While these changes may bring about improvements, they may also create problems, so monitoring any arrangements in place, to ensure they are working for everyone involved, is hugely important.
In any event, arrangements for night or shift workers should be reviewed periodically, to ensure their effectiveness.
Good practice recommendations
While carrying out robust risk assessments and implementing their findings will help the unique features of every business and every care situation, generally there are a number of approaches employers can take to support the wellbeing of their team.
Clearly every situation and business is different, and this may not be appropriate in every one; while it is not legally binding to take such steps, it can be advisable if appropriate to demonstrate the implementation of good practice.
• Plan a workload that is appropriate to the length and timing of the shift.
• Schedule a variety of tasks to be completed during the shift to allow workers some choice about the order in which they are done
• Avoid scheduling demanding, dangerous, monotonous and/or safety critical work to-wards the end of night shifts
• Avoid placing workers on permanent night shifts, and if possible,
• Offer a choice between regular and rotating shift schedules
• Where possible, arrange shift start/end times to be convenient for public transport or consider providing transport for workers on particular shifts
• Limit shifts to a maximum of 12 hours (including overtime)
• Consider if shifts of a variable length or flexible start/end times could offer a suitable compromise
• Allow workers some discretion over when they take a break where possible, but discour-age saving break time to leave work earlier
• Try to limit consecutive working days to a maximum of five to seven days and ensure there is adequate rest time between successive shifts
• Ensure supervisors and team members with responsibility for shift working arrangements are aware of the risks of night work and can recognise problems caused by this
• Provide training and information to workers, management and supervisors on the risks associated with night work and on coping strategies.
Support Worker – Acquired Brain Injury – East Sussex TN20
MAIN SCOPE OF THE JOB:
We are looking for a dedicated support worker with a genuine caring profile and good sense of humour with the ability to learn and implement prescribed therapy to support our adult client who has an acquired brain injury. You will be required to work alongside our client in East Sussex in a facilitative role, enabling his integration into the community, supporting his day-to-day needs and sourcing suitable local facilities for social integration and therapy rehabilitation.
HOURS:
Working days: Monday to Sunday – shifts based on 3 days and 1 sleep in night (option for split shifts is negotiable).
Working hours: combination of day shifts and sleep in shifts totalling a maximum 48 hours per week
PAY:
£17 per hour Monday to Friday day shifts
£19 per hour Saturday and Sunday day shifts
Sleep in shift calculated as £80 plus 4 hours at the day rate (weekday/weekend)
MAIN DUTIES & RESPONSIBILITIES:
GENERAL:
PERSON SPECIFICATION:
Essential Requirements:
Desirable:
Job Types: Part-time, Permanent
Salary: £17.00-£19.00 per hour
Day range:
Shifts:
Ability to commute/relocate:
Experience:
Click here to apply for this position
Application deadline: 12/06/2023
Reference ID: SWJLS-052023
Get up to date with latest statutory payment changes – April 2023
As April gets closer, make sure you are up to date with the changes in minimum wage rates and other statutory payments for the tax year 2023/2024.
It is not long until April, and of course for anyone involved in HR or employing people, knowing the annual change in rates for the National Living Wage and other statutory payments is vital. Below we outline some of what you need to know:
National Living Wage
From 1 April 2023, the National Living Wage (NLW) will increase from £9.50 per hour to £10.42.
(1.4.2022 to 31.3.2023)
From 1.4.2023
(but above compulsory school leaving age)
Apprentices
Apprentices are entitled to the apprentice rate if they’re either:
Apprentices are entitled to the minimum wage for their age if they both:
Statutory Pay for Parents
From April 2023, Statutory Maternity Pay (SMP) after the standard six weeks of 90% of pay is £172.48 or 90% of the employee’s average weekly earnings, whichever is lower. Note the same rate also applies to Statutory Paternity Pay and Statutory Adoption Pay.
Statutory Sick Pay
From April 2023 Statutory Sick Pay (SSP) will increase to £109.40 per week. How much you need to pay an employee depends on the number of qualifying days they normally work each week and how many days they were off sick.
Further information can be obtained from the government website or by following this link https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2023-to-2024
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here.
If you would like to receive our newsletter, please sign up here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, from recruitment through to exit.
Part-time workers’ holiday entitlement – keeping up with changes
With a significant Supreme Court judgement set to reform how part time workers’ holidays are calculated – and a Government consultation on this currently underway – employers must ensure they are on top of this fast-changing situation.
Here, we look at the current situation and how Employers should review their current policies and procedures ahead of any further changes.
Part-time workers are set to see changes in their holiday entitlement, which employers must ensure they are aware of to stay on top of their legal obligations.
Following a recent judgement from the Supreme Court, a consultation over holiday entitlement for part-year and irregular hours workers is being launched.
The Harpur Trust v Brazel case concerned the calculation of holiday pay and entitlement of a permanent part-year worker on a zero-hours contract. The judgment held that the correct interpretation of the Working Time Regulations 1998 is that holiday entitlement for part-year workers should not be pro-rated so that it is proportionate to the amount of work that they actually perform each year.
Part-year workers are entitled to 5.6 weeks of statutory annual leave, calculated using a holiday entitlement reference period to determine their average weekly pay, ignoring any weeks in which they did not work.
As a result of this judgment, they are now entitled to a larger holiday entitlement than part-time workers who work the same total number of hours across the year.
Employers are urged to take part in the Government consultation, ahead of a probable overhaul of their part-time worker holiday policy – but here, we look at the current situation and how to ensure you are compliant in meeting your obligations.
Current entitlement
Under the Working Time Regulations 1998 (WTR), all workers (this includes employees) are entitled to 5.6 weeks’ annual leave. For someone who works five days a week, this is 28 days. 28 days is the maximum statutory annual leave that must be given. Complications have arisen over the years in calculating this for those who work for less than five days a week, or less than 52 weeks in a year.
For part-time workers, working 52 weeks a year but less than five days, the solution is simple: their weekly days or hours worked are multiplied by 5.6 to get their yearly entitlement. For those who are not required to work for 52 weeks in the year, but are permanently employed (i.e., not on a fixed term contract), things are less clear. In the Harpur Trust v Brazel judgment, the Supreme Court ruled that part-year workers must be given 5.6 weeks annual leave, but this cannot be prorated in accordance with the number of weeks they work in a year – consultation is now underway by the Department of Business, Energy and Industrial Strategy (BEIS).
Pro-rated holidays
A part-year worker is anyone who doesn’t work every week of the year, such as someone on a term-time only contract. A part-time worker is anyone who works every week of the year but on fewer days or hours than a full-time colleague. A part-time pattern might mean they work three days per week instead of five, or 4 hours per day instead of 8, but they work 52 weeks per year.
It is important to understand the difference between a part-year worker and a part time worker as the holiday calculation is different for each. Annual leave can be pro-rated for a part-time worker. This is anyone who works 52 weeks per year but on less days/hours than a full-time colleague. For example, someone who works three days per week instead of five. This person would be entitled to 16.8 days’ annual leave instead of 28 days (5.6 x 3 = 16.8 days). Annual leave can also be pro-rated for fixed-term contracts, where there is a clearly agreed date for when the employment will end.
For example, if an employee is contracted to work for three months only to cover a busy period (e.g., summer holidays), their holiday entitlement will be 1.4 weeks. This is worked out by dividing 5.6 by 12 months then multiplying by three months (5.6/12 x 3 = 1.4wks). Finally, annual leave can be pro-rated for new starters and for leavers (e.g., someone who starts and/or leaves during an annual leave year), so that the entitlement is only based on full months worked under the contract. However, the Supreme Court judgement was clear that the amount of leave for part-year workers under a permanent contract must not be pro-rated to be proportional to that of a full-time worker. Therefore, zero-hours, variable hours, casual, agency and term-time staff should all get 5.6 weeks’ leave per year. What will the current Government consultation reveal?
Calculating leave entitlement and holiday pay
All employees are entitled to 5.6 weeks paid annual leave. As such, there should be no need to do any further calculations to work out accrual or entitlement (unless for part-time or fixed-term staff). The percentage method (where 12.07 per cent of the hours worked / pay received is used to determine holiday entitlement and pay) should not be used for any holiday calculations.
You must have measures in place to keep track of what entitlement has been used so far in the holiday year (in the same way you might do for full-year staff) and ensure everyone takes their full 5.6 weeks’ leave. Holiday pay should be paid at the normal rate of pay. Where weekly pay varies (for example, for workers on a zero-hours contract), you should calculate holiday pay based on an employee’s average weekly earnings over the previous 52 paid weeks. The reference period must only be weeks for which the worker was actually paid.
It must not include weeks where they were not paid as they did not work. It should also not include any weeks where “normal” pay was not received, for example, because they were on sick leave and they received sick pay.
You can go back for a maximum of two years (104 weeks) to obtain the relevant 52 weeks’ pay data.
In the event that the employer does not have 52 weeks data from the previous 104 weeks, then the reference period becomes the number of weeks’ worth of data available.
Example calculation – Average weekly pay
Add earnings from previous 52 working weeks / 52 = average weekly pay Pay for holiday period = average weekly pay x no. weeks’ holiday For example, if an employee’s average weekly pay is £100 and they want to take 2 weeks’ holiday: £100 x 2 = £200 holiday pay. This calculation should be re-done at the beginning of every holiday period.
Rolled up holiday pay
Government guidance states that holiday pay should be given at the time when annual leave is taken and that an employer cannot include an amount for holiday pay in the hourly rate. It also states that if a current contract still includes rolled-up pay, it has to be re-negotiated. In the past, employers could try to use rolled up holiday pay by being transparent with employees and ensuring they are given time off. But, employees could still raise a claim if they think they had been prevented from taking their annual leave.
However, since rolled up holiday pay typically uses the 12.07 per cent method to calculate accrual, the Supreme Court’s judgment that this should not be used adds extra risk. As such, it is best to reach alternative agreements with affected staff and ensure they are given 5.6 weeks’ annual leave with the pay for this leave given at the time the holiday is taken.
Holiday calculations – resolving errors and new approaches
Payment in lieu
Payment in lieu of statutory minimum entitlement (5.6 weeks) is not allowed unless employment is terminated. You must let employees take the full 5.6 weeks leave within the current holiday year and pay for leave at the time it is taken.
Backpay for previous years
If you have been calculating pay incorrectly (e.g., by using the 12.07 per cent method rather than taking a 52-week average), it is possible that you may owe employees compensation for underpayment of holiday pay. You can proactively take steps to provide the employee with backpay. Some employers may try to take the “wait and see approach” and let employees raise this, but this might not be possible for unionised environments since the union will likely be in contact to campaign on behalf of the employees they represent to get backdated pay. It is important to remember that not taking action could significantly increase the risk of unlawful deduction from wages claims being raised by employees.
When calculating what backpay is due, you will need to assess what was paid using the 12.07 per cent method and what should have been paid by taking a 52-week average; the compensation for underpayment of holiday pay will be the difference between these two figures. Where an employee or union request that backpay is given for previously underpaid holiday, it is likely you will have to do so, otherwise you are at significant risk of receiving an unlawful deduction from wages claim. Usually, an unlawful deductions claim must be paid within three months of the last deduction, or in this case, within three months of the last holiday pay payment.
But, given the scope of the situation, tribunals might allow employees to bring a claim within three months of the end of the holiday year in which holiday pay was calculated incorrectly.
The tribunals claims backlog is significant at present. Additionally, there are the risks of disrupting employee relations, thus reducing productivity, engagement and satisfaction, as well as action from trade unions.
Consequences of failing to give sufficient holiday
Not providing the full 5.6 weeks entitlement will be in breach of the law and is not recommended.
In this situation, there is a significant risk of tribunal claims, industrial action, employee grievances and resignations. There could also be wider implications for the organisation’s reputation with the general public.
Alternatives to part-year contracts
Term-time, variable-hours and zero-hours contracts, like any other type of contract, have their pros and cons. It is useful to consider why you are introducing a part-year contract in the first place. Is it because you only need someone to cover busy periods, like summer or Christmas, or term time? If so, a fixed-term contract or annualised contract may be a more effective alternative. If you want to continue having staff available year-round, and only call on them as and when needed, zero-hours and variable-hours agreements may be beneficial but consider all the terms involved. As such, it is worth understanding each of the different types of contracts and considering which is most appropriate for your workers.
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here. If you would like to receive our newsletter, please sign up here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, and small businesses, from recruitment through to exit.
CLOSED – Team Leader – Support Worker – East Sussex – TN20
Team Leader – Support Worker – East Sussex – TN20
48 hour weekly contract, with the option to work additional shifts
£19.00 – £23.00 per hour
Embrace HR are working on behalf of their client to find a Team Leader.
Our client is a lovely gentleman with an acquired brain injury, who lives with his wife and eleven-year-old daughter. The family are very close and enjoys spending time together.
Our client enjoys woodwork, arts and crafts, social outings, and watching movies at the cinema. He has a great sense of humour, and enjoys interacting with his support team.
To thrive in this role, you will have a good sense of humour, an excellent work ethic, and the ability to maximise someone’s potential and enhance their quality of life within their home environment.
You will possess good organisational and communication skills, empathy, flexibility and enthusiasm, with the ability to use your initiative and creativity. You will be confident, reliable and caring. Undertaking domestic tasks, such as cleaning and tidying at the end of the shift, is vital.
Your duties will include co-ordinating the team by organising the rota, supervising staff, monitoring the quality of care provided and liaising with the multidisciplinary team. You will provide care for our client within the family home and during trips out into the community. You will work towards a client-centred approach to improve and promote our client’s quality of life by following the agreed therapy and care plans.
Additional paid for administration work is required outside of your shifts, which is coordinated by the case manager (uup to 10 hours per month paid for at the weekday hourly rate).
You will work a 24 hour shift on Sunday (day shift is 8am-8pm and sleep in 8pm to 8am), Tuesday day shift and Thursday day shift. All shifts are 12 hours; 8am-8pm and 8pm-8am.
Are you the right person for us?
Your role will include, but not be limited to
ensuring that the highest quality of care is provided
Identifying areas for training [this is a new bullet point]
process and procedure
manager
Click here to apply for this position
CLOSED: Female Support Worker – Ware, SG11
Female* Support Worker | Ware, Hertfordshire | Full Time Position
£13.00 – £15.00 per hour dependent on the shift worked and your experience
Embrace HR are working on behalf of their client to find an enthusiastic and committed Support Worker to join a small care team, who can be flexible in their availability of shifts worked.
Our client is a young adult with cerebral palsy resulting in a need for care and support for everyday activities. She lives at home with her family and requires support with her personal care, food preparation and feeding, as well as the preparation and administering of medication.
You will work flexibly to support her and her family to manage aspects of her daily life, both at home and in the community, to enhance her quality of life, and at all times to ensure her physical, psychological and social well-being.
Caregivers are also asked to support our client in accessing the community around her so she can live a fulfilled and varied life including attending local day activities such as gardening, music and art clubs, going to festivals, concerts and to the theatre, socialising with family and friends, taking her dog for a walk, shopping and attending social events such as the cinema or the pub as well as attending hospital and physio appointments.
You will be expected to work flexible day shifts, evening and weekends. At present, there is no need for night care every night during the week, although there may be a need to provide support overnight when accompanying our client on holiday, at weekends and when either parent is away from home. The need for night care is reviewed on a regular basis and caregivers are expected to be available for night shifts when required.
You will learn how our client communicates via her symbol book, eye gaze technology and eye pointing. You will build a good rapport at an age-appropriate level with her to build a meaningful, close and positive working relationship built on trust and respect that ultimately leads to a two-way friendship.
Are you the right person for us?
Your role will include, but not be limited to
applying ointment to her coccyx to maintain the integrity of her skin and changing
incontinence pads
Schedule and shifts available:
Day time:
09:00 – 16:00 Monday to Friday
10:00 – 16:00 Saturdays
12 noon – 20:00 Sundays
Evenings:
16:00 – 20:00 Weekdays
16:00 – midnight Friday/Saturday
This is a village location without direct public transport links. Car driver essential.
Satisfactory references and proof of eligibility to work in the UK will also be required.
This position requires a disclosure request from the DBS (Adult Workforce). A conviction will not necessarily prevent you from being employed.
*The Employer claims exemption under the Equality Act 2010
If you are ready to start your career with our client, then CLICK HERE TO APPLY, quoting Job Ref SYP