Calculating holiday entitlement

[Timja]

Any experts here on the legal position on calculating holiday entitlement?

Situation: I work a standard full time 9-5 5 day week. My holiday entitlement is 25 days + statutory.

I started working for the company half way through October.

T’s & C’s of employment say:
“ Annual holidays accrue at the rate of one twelfth of 25 days for each completed month of service in the current holiday year, 1st April to 31st March, any resultant fraction of a day in the total being rounded upwards to the nearest half day.”

Their calculation for holidays is 25 days / 12 months x 5 full months (Nov- Mar) = 10.5 days. I would argue it should include half of Oct x 5.5 months = 11.5 days.

My understanding was that legally you accrue holiday entitlement from your 1st day at work. Or is this only relevant if work somewhere that only gives the minimum 20 days holiday as I understand in that situation they would be breaking the law if they didn’t pay for part of October as they would end up giving less than 20 days using the calculation.

Using their interpretation you could start on 2nd Oct but accrue no holiday in October as not a full month, loosing 2 days holiday.

I’ve never worked somewhere that has done it in this way, always doing pro rata for the starting month.

On the same basis, I wonder whether when employees leave the company whether you would earn nothing in your final part month? T’s and C’s do not cover this...

Question is, legally can they do this and not pay any holiday for your 1st part month? Has anyone else had this situation?

[BeeGT]

If you started on, say, 15th October then your leave should be based on completed months, i.e. 15th November = 1 month, 15th December = 2 months completed and so on. From what you've quoted your Ts&Cs do not refer to it being based on 'whole calendar months' which is the measure they seem to be applying.

[Scrump]

BeeGT said:

If you started on, say, 15th October then your leave should be based on completed months, i.e. 15th November = 1 month, 15th December = 2 months completed and so on. From what you've quoted your Ts&Cs do not refer to it being based on 'whole calendar months' which is the measure they seem to be applying.

The calculation above would give the same answer as the employers calculations as 15 Oct to 14 March would be 5 completed months. The last two weeks or so of March would not be a completed month.
I think the employers calculations are correct according to the wording of their T&Cs.
As you are a new employee is it worth making a fuss over a single holiday day as this is a one off during your first few months with the company and it will be correct next year?

[Timja]

I’m not going to make an issue over it with new employer (although I think it’s poor) but really keen to understand the legal position as my understanding is that holidays are accrued from 1st day of work. I believe that legally every employee is entitled to 20 days plus public holidays.

If for example someone started on 2nd October and left on 30th December, by companies definition of complete calendar months, they would pay for 2 months holiday (4.17 days) but someone who was on minimum statutory holidays would be entitled to 5 days holiday. Surely this makes my companies policy in certain situations in breach of statutory legal requirements?

Anyone know?