Cost of buying annual leave

getmore4less

sammyjammy wrote: »

Can't you just take unpaid leave? It all sounds way too compliated!

As long as taking unpaid does not effect the annual holiday allowance of 28 days then I think it makes no difference.

hcb42

getmore4less wrote: »

helencbradshaw wrote: »

A year is NOT 52 weeks.

The differance is small though so 260 days is a reasonable approximation for this sort of calculation and an employer can use any calculation they like as long as they don't beak the WTD and statutory holidays.

Agreed, which is why I was flagging why there was something wrong with the calc, there isnt, it is perfectly reasonable!

savinglikemad

hi I too am researching this but our payroll boss recons a days pay was 52 (weeks) x 5 (days per week) equals 260 workable days per year minus 8 days bank holiday minus 21 days annual holiday therefore 231 workable days the employer is paying you to work in a year so if your gross was £23100 per year you lose £100 per day. the method you are all talking about assumes 260workable days which is only £88.85 per day. I am trying to find out the correct calculation as rather than a pay increase this year (hopefully) I would rather have extra days, but as you can see his calculation is way different to mine. Any answers gratfully looked at.

Any

savinglikemad wrote: »

hi I too am researching this but our payroll boss recons a days pay was 52 (weeks) x 5 (days per week) equals 260 workable days per year minus 8 days bank holiday minus 21 days annual holiday therefore 231 workable days the employer is paying you to work in a year

But in normal office full time job bank holidays and your holiday entitlement are paid for by your employer.... ??

ie they pay calendar month, every month same amount (unless bonus or something) no matter how many bank holidays or your holiday entitlement you took..

So your normal wage would be £23100 for 260 days... (52 weeks x 5 days).... no minus this or that..

savinglikemad

thats how I thought it worked too but have read a post where it states some payroll schemes do operate the same theory as boss, just thought there would be something on goverment web site but cant see one.

Any

Yes, there are different schemes... but that would probably be in your contract... Or company policy.
Have you got them?
There is a scheme where you kind of "save up" money for your holidays for example.

savinglikemad

Our contracts states you are entitled to 21 days paid holiday, and usual bank holidays.

Any

savinglikemad wrote: »

Our contracts states you are entitled to 21 days paid holiday, and usual bank holidays.

So no clause on how is your holiday rate calculated etc? (Ie if you finished half way through the year and didn't take holiday how much would they pay you for untaken holiday)

I cannot see why would your boss calculate it that way.. holiday&bank holiday are legal requirement, they are already within your pay so I have no idea why for extra day off he would exclude them from your package..

ie when you calculate hourly rate, you just take your annual salary, devide it by 52 weeks & then hours/week - in this case the holiday and bank holiday are also omitted... because they are your legal entitlement, they have to pay them...

So why would he choose different way of calculating unpaid leave I have no idea..

Uncertain

Given that the firm does not have to agree to this they can "charge" what they like.

Sometimes companies are keen for staff to do this as it is a way of reducing the salary bill without the hassle / cost of redundancies.

However, it can work the other way. If they are fully stretched it may tip the balance towards needing extra staff which may cost far more than the saving on the OP's pay.