Holiday entiltement for term-time nanny

EconomicsGirl

I've got a new job so I needed an afterschool nanny for my children. The nanny will be working Mon to Fri term time only for around 3 hours a day. I beleive school term is for 39 weeks of the year so roughly 3/4s. I believe legally I need to pay holiday pay but need help with how many part-time days this would work out at. I looked online and it said government advice is under review. It seems to be 28 days (20 plus Bank Hols) for full-time workers but I'm confused as to how you would split this.

Would I say do 3/4s of 28 is 21 days incl. bank hols
or 3/4s of 20 is 15 plus any bank hols that fall in term time (only 1).
Or would I use something else completely.

Secondly I'ld prefer to pay out the holiday but can I do this if she agrees? Are there any rules on when it can be paid out - could I pay it each month or would it need to be at the end of the holiday year? What about school closure days would they be unpaid or out of holiday. Her hours are likely to be 16 hours a week. We only need her in term time, we may occassionally add on extra hours how do we do the holiday for that?

Thanks for any help. I'm confused by all this but want to make sure everything is done legally.

mysk_girl

So 15 hours a week? Well, the legal minimum is 5.6 weeks which you accrue if you work a full year. You can't accrue holiday while on holiday so this 5.6 weeks is accrued for working 46.4 weeks (52-5.6)

Therefore for a 12 month period you owe her (39/46.4) * 5.6 weeks holiday = 4.71 weeks which is 70.6 hours.

I run payroll for a preschool whose staff are paid 39 weeks and we spread their pay over 12 months so they get a total of 43.71 weeks pay divided equally into 12 chunks. They are not allowed holiday in term time except in emergencies and it is then unpaid as we've already paid them for it IYSWIM.

Hope that helps!

mysk_girl

Ooops, just read 16 hours a week - but the number of weeks is still correct.

Your best bet is to sit down in August and work out which days she is working exactly, and draw it up on a calendar. So you won't want her to work on bank holidays, but I guess you will need extra hours for inset days? Then you can work out an annual gross salary. This should be be multiplied by 1.1207 (5.6/46.4 accrual rate) to give annual salary inclusive of holiday pay. Then maybe divide by 12 and pay equal amounts each month?

You could also do it by paying for 39 full weeks but deducting bank holiday from the annual allowance. In the example above, if there were 2 bank holidays falling in term time, you would deduct 6 hours from the 70.6 hours before adding it to salary.

For example :

£10 per hour for 16 hours per week for 39 weeks per year with 2 bank holidays (3 hours deducted)

Basic salary = 10*16*39 = £6240
Holiday allowance = 4.71*16 =75.36 hours
Deduct 6 hours for bank holiday from allowance = 69.36 hours
Total holiday pay = £693.60 per annun
Total pay for the year = £6933.60
Per month = £577.80
No tax due but poss some NI?

OR

Hours worked in the year = 39*16 - 6 = 618
Total annual pay inclusive of holidays = 618*10*1.1207 = £6925.93
Per month = £577.16

Not much in it

Please check my maths carefully! And this is my understanding of part time holiday pay based on guidance from the Pre School Learning Alliance. Happy to be corrected...

getmore4less

The equal 12 month method works for long term full timers but can be a pain when people leave or do extra or have time off.

Easiest way to do statutory is as 12.07%(5.6/46.4) of contractual hours.
you could be generous(recomended) and do it for all hours including overtime.

You can pay this on the weeks that are not worked, there are enough of them to chose.

EconomicsGirl

Thanks very much - that very useful. We wouldn't need her for inset days as these are tagged onto holidays but may occassionally need her for extra hours like if there was a strike mid week.

Looks like there are 190 days in the school term not including the 5 inset days. Using the 12.07% method I make that 23 part days holiday a year. The nanny is happy to be paid monthly but isn't keen on months being evened out - she prefers exact hours worked paid which I can understand so that she can understand it and I think she wants the holiday pay paid out each month. Basically she wanted £10 an hour worked (with no holiday pay) and I want to give her £10 an hour including holiday pay as legally I can't do what she's asking for. Sounds like I can do this by allocating 12.07% of the £10 an hour as holiday pay - looks like it £8.92 an hour so say £9. She wants it paid monthly so that each month equals exactly £10 an hour worked. Most months this is fine as there's a holiday every 6 weeks or so. Presumably I'ld do any extra hours the same way. I have to discuss things with her to see if she wants to take any term time holiday but am tempted to put it through like this and do that as unpaid. She won't have tax to pay but will have NI so I have to register with HMRC though the amount due and employers NI is minimal. Thanks very much for all your help.

Savvy_Sue

getmore4less wrote: »

The equal 12 month method works for long term full timers but can be a pain when people leave or do extra or have time off.

Easiest way to do statutory is as 12.07%(5.6/46.4) of contractual hours.
you could be generous(recomended) and do it for all hours including overtime.

You can pay this on the weeks that are not worked, there are enough of them to chose.

That is exactly what I would do.

EconomicsGirl wrote: »

I think she wants the holiday pay paid out each month. Basically she wanted £10 an hour worked (with no holiday pay) and I want to give her £10 an hour including holiday pay as legally I can't do what she's asking for. Sounds like I can do this by allocating 12.07% of the £10 an hour as holiday pay - looks like it £8.92 an hour so say £9.

I don't think you can do what she wants: it's called 'rolled up holiday pay' and although it used to be quite common, eg with temp agencies, it's gradually been outlawed.

You certainly MUST show the holiday entitlement separately.

Now when I have to pay staff who work irregular hours, I keep a sheet of all the hours they work, and pay them 12.07% every 3 months, as holiday pay. When I've had staff working term-time or holidays only, I've kept a sheet of their hours, and paid their 12.07% holiday pay 6 times a year, ie at every term or holiday end, including half terms.