holiday entitlement when you're paid by the hour

toasterman

Hi all,
I started a new job a few months ago, in retail.
My contract guarantees me 25 hours per week, but I actually work 37.5. I have done, almost every week since I started.
Basically I can lower them whenever I want and leave on/after my contracted time, but I never do (as I need the money, and am paid hourly for every hour I'm in the building).
Due to the nature of the business, some weeks the company "overspends" on wages or doesn't take enough money to warrant them, and they then spend the following week asking people to go home "early" every day, thus I might go home slightly ahead of time (but normally still after my contracted hours). It's rare I'll get asked to leave early every day in a week though. They get different departments to leave early, so it's not all one person losing out.

But for the most part, if my contract says I work 9-2, I actually work 9-5. Almost every day. Then when they need to cut hours, they might ask me to do 9-2 for a few days.
This is hardly the greatest situation to be in (as I can never be sure whether I'll be asked to work 25 or 40 hours on any given week, and thus can't be sure what my monthly salary will actually be), but I'm making the best of a bad situation, want to work, and it took me a year of looking to get something as reliable as this.

This month I took holiday for the first time, and was given a form to fill out which asked how many days, and crucially.. how many hours I was taking.
So I ticked the days in one week, and put down 37.5 hours, for one complete week. This was then signed off by managers, agreed, etc.

However, I've just been paid, received my payslip and it states they have only given me 25 hours holiday pay.
So my question is - am I entitled to 37.5? Does holiday pay work to contracted hours, or is it accrued based on the hours I've actually worked?
If not based on real hours, for each week I take off, I'm going to be 12.5 paid hours worse off, than if I'd gone in, which seems a little unfair.

Thanks for any tips/advice.

DCFC79

When I and everyone else wants to book holiday we book the number of hours we are contracted for eg my normal hours a week are 20 so if i want a week off I allocate 20 hours. The extra hours aren't a guarantee though.

What does your contract say ?
You asked HR to explain it ?

ohreally

Your entitlement will be calculated on 25hrs.

If you are constantly working 37.5, this may indicated an on-going need for this hours to be fulfilled, ask your manger to increase your contracted hours to account for this.

kingfisherblue

Holidays are usually based on your contracted hours. The overtime is just that - overtime. You choose to work it, and you get paid for it. You don't usually get additional holiday as well.

anamenottaken

I understand this is quite common in retail. The hours you do over 25 each week are counted as "over-time" and therefore not part of the hours on which your holiday is based.

Russe11

Unless you contract has a enhanced holiday entitlement above the legal minimum you would be entitled to only 25 hour per week of leave as these are your contracted hours.

If you wanted to accrue holiday for each and every hour worked then you can only get this in irregular working patterns or zero hours contracts, where its either calculated on the average of previous weeks worked, most just use the calculation on 12.07%.

Generally any hours over the contracted hours would be paid at an enhanced rate, this therefore covers the extra tax(does not always affect low hour low wage jobs) you might pay and the matter your not entitled to holiday pay on overtime hours.

Since you don't always do the extra hours, that you have the right to refuse its not compulsory or garenteed overtime.

Lots of organisations get round holiday element of pay on staffs wages by having part time posistions say at 10, 16 or thereabouts hours but always offering overtime, it means for the holiday entitlement they get away with paying 16 hour weeks.

It always more favourable for holiday if you know you are going to get the work to not be on low contracted hours but on zero hour contracts.

toasterman

Thanks all.
I've worked at least 35 hours a week, almost every week since I started (except a couple where they cut hours throughout the entire workforce). I couldn't really afford to live off 25 at the moment, so I take all/any overtime going generally, unless I have prior engagements that absolutely can't be moved.

However, my contract does state I'm employed 25 hours a week, so it looks like every week I take in holiday, I'm going to be losing out a bit from what I tend to budget from getting each week (which I do know is based on optimism/history, as my hours could be cut back at any point).

I spoke to a couple of people at work about this (not anyone in HR, yet), and they seemed surprised that I wasn't aware of this set up. They've both suggested I push for my contract to state the actual hours I work, but I've done nothing more about it yet. They both thought it would be unlikely I would get an increase in contracted hours, as the other people they have known who have had this happen have been there substantially longer than I have. Still, worth asking.

Firefox1975

They will be reluctant to increase your contracted hours as this is then reflected in their budgeted salary costs and will need explanation for a mid term adjustment at their end. (i.e significant increase in sales or covers etc.)

variable contracts are not included in forecasting and are therefore a much better proposition for the line manager.

you have to weigh up whether you enjoy the security of a fixed contract + overtime which may or may not be guaranteed and therefore fixed holidays OR a variable contract which has no guaranteed hours but will accrue holidays inline with the hours you actually work, but this also means you could go weeks without work!.my hunch is you work in a restaurant or similar environment

(generally people opt for the fixed contract!)

it sounds like you department is running tight to budget if they are changing hours on a weekly basis - therefore your request for an increase in fixed contract will no doubt be denied

BUT! if i were you, i would find out when they submit their budgets for the next financial year, that would be the ideal time to request an increase in hours (From the start of the new financial year anyway!)