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FTC and Holiday Pay

Hi there,

Wondering if anyone can solve a conundrum for me.

I have been offered a month's contract with a company. The contract states that holiday pay is 20 days per annum not including bank holidays (which would make it up to 28). However, in the next month there are no bank holidays…

So, my holiday for the month's work would be 1.6 days, as if I am getting only 20 days holiday per year, but the law says I should be getting an equivalent of 28 (which I make 2 days).

It's obviously not a big difference in the grand scheme of things, but is it lawful for them to do this? Should I point it out? We are still negotiating the terms so it isn't too late to do something about it…

Thanks in advance for your help :)
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Comments

  • DomRavioli
    DomRavioli Posts: 3,136 Forumite
    1,000 Posts Combo Breaker
    It is 1.6 days. It states 20 days per annum - bank holidays are taken when they occur.

    Its literally in black and white. It is perfectly lawful, you are entitled to 1.6 days, plus any bank holidays occurring.
    Why would you point out a basic condition of contract; it is the norm.
  • Thanks for your very frank reply Dom - OK, perhaps I termed it badly. Think of it as a philosophical question from someone who doesn't really understand UK holiday pay law.

    In the UK the law states that everyone has 28 days' holiday a year.
    Some of these can be bank holidays (but workers are not entitled to take bank holidays just because they are called holidays).
    So far so simple.

    But now, I am being asked to take 1 month's contract. Which to me should be paid holiday at 1/12 the usual rate - just over 2 days.

    I am being offered the contract at 20 days plus bank holidays, but there are no bank holidays in the month I will work

    SO, in effect, are they offering me a contract with 20 days' holiday prorated over the term instead of 28?

    To be honest, I am highly unlikely to bring it up with them for the sake of 0.4 days, I am just curious about the maths and the letter of the law. :A
  • Intoodeep
    Intoodeep Posts: 1,670 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Just get on with the job in the first place might be an idea, all these people pondering Holidays before they have even done days work get on my wick
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    shame dom has got it wrong.

    pro rata 28 days min.
    easiest way for a month is a 12.07% uplift for holiday pay.
  • DomRavioli
    DomRavioli Posts: 3,136 Forumite
    1,000 Posts Combo Breaker
    shame dom has got it wrong.

    pro rata 28 days min.
    easiest way for a month is a 12.07% uplift for holiday pay.

    Not at all. It is a FTC, unless it expressly states that it is pro rata holidays, then it is at a standard rate, and bank holidays are taken on an as and when they occur basis.

    I've worked FTCs for the last 12 years, and have queried it with HR professionals, legal professionals, and even 2 solicitors who I used to work for. Unless the contract specifically states it is 28 days pro rata, then it is NOT INCLUDING BANK HOLIDAYS. That's the law.
  • Intoodeep wrote: »
    Just get on with the job in the first place might be an idea, all these people pondering Holidays before they have even done days work get on my wick

    Thanks for your helpful input, but I like to read my contracts and know what I am getting into before I sign. As I work on an FTC basis it is important to me to know I am being paid properly and to know which companies are best to work for, especially in situations where I am being offered more than one job.

    YMMV :)
  • DomRavioli wrote: »
    Not at all. It is a FTC, unless it expressly states that it is pro rata holidays, then it is at a standard rate, and bank holidays are taken on an as and when they occur basis.

    I've worked FTCs for the last 12 years, and have queried it with HR professionals, legal professionals, and even 2 solicitors who I used to work for. Unless the contract specifically states it is 28 days pro rata, then it is NOT INCLUDING BANK HOLIDAYS. That's the law.

    Thanks Dom, it is good to know you have some experience of this. Do you know of any links where I could read up on this?
  • DomRavioli wrote: »
    Not at all. It is a FTC, unless it expressly states that it is pro rata holidays, then it is at a standard rate, and bank holidays are taken on an as and when they occur basis.

    I've worked FTCs for the last 12 years, and have queried it with HR professionals, legal professionals, and even 2 solicitors who I used to work for. Unless the contract specifically states it is 28 days pro rata, then it is NOT INCLUDING BANK HOLIDAYS. That's the law.

    Amazing. All those HR professionals, legal professionals, and even two solicitors. And they all have it wrong. UK law is that employees get 28 days annual leave. That 28 days may include bank holidays. But the law says 28 days. Those days are pro-rata'd for anyone working part time or part years. Getmore4less is correct.
  • Thanks Dom, it is good to know you have some experience of this. Do you know of any links where I could read up on this?
    They are quoting 20 days + stats which is statutory minimum. Short term contracts calculate leave as pro rata so 1 month = 1/12 x 28 days = 2.33

    https://www.gov.uk/holiday-entitlement-rights/entitlement
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 28 January 2014 pm31 9:08PM
    DomRavioli wrote: »
    Not at all. It is a FTC, unless it expressly states that it is pro rata holidays, then it is at a standard rate, and bank holidays are taken on an as and when they occur basis.

    I've worked FTCs for the last 12 years, and have queried it with HR professionals, legal professionals, and even 2 solicitors who I used to work for. Unless the contract specifically states it is 28 days pro rata, then it is NOT INCLUDING BANK HOLIDAYS. That's the law.

    That was the law, but not any more in Oct 2007 went from 20 - 24 then to 28 in April 2009

    (its actually 4.0 - 4.8 - 5.6 weeks which may include BH).

    An employment contract cannot give less than the statutory minimum holidays.
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