Holiday pay from agency (irregular hours).

HappyBirthday

I have just worked for an agency, full time, for a period spanning 15 pay weeks. Then I was transferred on to working for the main employer directly.

In the first 12 of those pay weeks, I was paid £8.21 / hour. For the last 3 pay weeks, my pay increased to £8.71 / hour.

During this time, I took no paid leave at all.

The hours were not regular. Some days were 7 hours in the start. Later most days were 8 hours. The employer would ask if staff wanted to leave early if work was quiet or stay longer if it was busy. Staff were only paid the hours worked. Going home early meant losing pay. Bank holidays meant no work and no pay. Again this conformed to the concept of only being paid for hours worked. The nature of the job meant staff would generally have to stay late from between a few minutes to 30 minutes every day. This was added to the hours worked by some mythical formula.

During my time I earned.

426.98 hours @ £8.21 = £3505.51

99.23 hours @ 8.71 = £864.29

1 hour @ £10.21 = £10.21

Total = £4380.01 from 527.21 hours.

£4380.01 x 12.07% = £528.67 (my calculation of holiday pay)

7.53 (days???) @ 65.10 (£/day???) = £490.20 (actually received)

So, a shortfall of £38.47.

Which calculation is closer to the real answer? If it is mine, it is worth chasing up £38.47 if the agency insists its calculation is correct?

HappyBirthday

I have been thinking about this. I have now revisited my calculation. If, like me, in my situation described above, you take no holidays then I think the approximate calculation is as follows

Gross Pay x 12.07% / 1.1207% = expected holiday pay.

£4380.01 x 12.07% / 1.1207% = £471.73

So, I think I am good.

General_Grant

HappyBirthday said:

I have been thinking about this. I have now revisited my calculation. If, like me, in my situation described above, you take no holidays then I think the approximate calculation is as follows

Gross Pay x 12.07% / 1.1207% = expected holiday pay.

£4380.01 x 12.07% / 1.1207% = £471.73

So, I think I am good.

I don't understand why you are dividing.

HappyBirthday

Sorry, I inserted a decimal point in the wrong place.

Try this -

£4380.01 x 12.07% / 112.07% = £471.73

Comms69

HappyBirthday said:

Sorry, I inserted a decimal point in the wrong place.

Try this -

£4380.01 x 12.07% / 112.07% = £471.73

Why are you dividing???

HappyBirthday

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

General_Grant

HappyBirthday said:

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

Multiplying by 12.07% (or even 12.069% etc) gives the right answer in terms of holiday accrual on hours worked.  You don't accrue or lose paid leave on hours not worked.  Or you can multiply by 12.07 and divide by 100.

Comms69

HappyBirthday said:

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

No it doesnt. It gives you the correct answer. There is no alternative calculation because the calculation is 12.07 (or 12.069)%

I dont even understand your logic for dividing at all? 12.07 is the percentage for the minimum paid time off you're entitled to.

To keep it relatively simple:

Annual wage of £24,000 includes within that 5.6 weeks of paid time off. So you will receive gross per month £2k, whether working or on leave.

Your salary, as an hourly worker is in effect £X.XXph + 12.07% accrued for time off. This is banked money, just like the money already included in the £24,000 annual wage; it is banked for future use.

I literally dont understand the logic of your equation. 

HappyBirthday

Comms69 said:

HappyBirthday said:

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

Annual wage of £24,000 includes within that 5.6 weeks of paid time off. So you will receive gross per month £2k, whether working or on leave.

But that was not my question or scenario. My question is, using your figures, if the worker takes NO annual leave during the whole year, earns £24,000, how much extra do they get on top in cash in lieu of annual leave/holiday pay that was not taken.

You will see, again using your figures, that 5.6/52 weeks x £24000 = £2584.62 i.e. 10.77% of of £24,000

Now, do you get what I mean?

General_Grant

HappyBirthday said:

Comms69 said:

HappyBirthday said:

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

Annual wage of £24,000 includes within that 5.6 weeks of paid time off. So you will receive gross per month £2k, whether working or on leave.

But that was not my question or scenario. My question is, using your figures, if the worker takes NO annual leave during the whole year, earns £24,000, how much extra do they get on top in cash in lieu of annual leave/holiday pay that was not taken.

You will see, again using your figures, that 5.6/52 weeks x £24000 = £2584.62 i.e. 10.77% of of £24,000

Now, do you get what I mean?

No need to do any calculation whatsoever.  The answer to your question is £NIL.
That is unless you asked for holiday and were refused leave or if you were sick at the end of the leave year (as some of your leave entitlement could be taken forward to the next leave year but you would not be entitled to more leave).

HappyBirthday

General_Grant said:

HappyBirthday said:

Comms69 said:

HappyBirthday said:

Because just multiplying by 12.07% gives the wrong answer.

If you don't take any time off, then you need to multiply your gross pay by 12.07% / (100% + 12.07%) i.e. 10.77% to give the right answer.

Please feel free to provide an alternative calculation if you think mine is wrong.

Annual wage of £24,000 includes within that 5.6 weeks of paid time off. So you will receive gross per month £2k, whether working or on leave.

But that was not my question or scenario. My question is, using your figures, if the worker takes NO annual leave during the whole year, earns £24,000, how much extra do they get on top in cash in lieu of annual leave/holiday pay that was not taken.

You will see, again using your figures, that 5.6/52 weeks x £24000 = £2584.62 i.e. 10.77% of of £24,000

Now, do you get what I mean?

No need to do any calculation whatsoever.  The answer to your question is £NIL.

You may not be familiar with employment agencies. Holiday pay is paid in lieu of holidays not taken.

I would love to see your calculation since you told me mine was incorrect. Please furnish the forum with your alternative calculation. Thank you.