Employer Changing Contract For Holiday (Breach Of Contract?)

lozza97

Hello guys!

I was sent a new contract in July 2021 as my hours per week had increased to 32. As of December, I took another increase to 36, but they haven't bothered giving me a new contract to confirm this. It states that we are entitled to '25 days holiday per year, in addition to Christmas Day, Boxing Day and New Years Day, or the pro rota equivalent if you work part time.' On my HR portal, it shows my holiday entitlement was 22.5 days per year, as I am considered part time. 

In November, the company decided that they were going to force us all to take Christmas, Boxing and New Years day off as holiday that would be deducted from our holiday allowance, so they deducted 3 days off of my 22.5 day allowance. We can also take 'open shifts' for extra hours each week if we'd like to boost our hours up - and on average I work 45 per week.

They have now sent out another email saying they are changing our holiday hours and the way it is worked out entirely. They said I worked 1060 hours between July and December. They have the formula down to say:

Step 1: Monthly hours worked x 0.1207 - monthly accrual (hours)
Step 2: Monthly accrual x 12 = annual accrual (hours)

They've said I took 136 hours holiday so far, and have 16 booked in the near future (total of 152 hours) 

It says "what your balance is (hours): -8.04'

According to my HR portal, I still had 3.5 days remaining of holiday, and that was including the deductions they made over the holiday period, and they class a holiday day as 8 hours

The HR team are refusing to give light/clarity on this, and so a lot of us are highly confused as to what all the figures means.

Firstly, would this mean I owe 8 hours holiday? This doesn't make sense given I had 3.5 days left on 32 hours base, but work 45 hours or more on average - so how could it become minus/owing?

Secondly, and most importantly, is it even legal to be doing this? I'm under the assumption there's some sort of a breach of contract here. They've taken bonus holiday we were contracted to have as extra, and now they've changed the holiday hours entirely. No employee has been given anything to say we agree to this change, and it isn't even a proposal but more an instant enforcement of this change. 

If anyone could help, I'd appreciate it!

biscan25

So here's my interpretation. Let me know if any of my assumptions are incorrect.
You receive statutory minimum holiday (20 days +8 BHs). "25 days holiday per year, in addition to Christmas Day, Boxing Day and New Years Day" is just a clumsy way of saving this.
You have so far taken/booked 19 days (152hrs divided by 8) of holiday since July 2020 (including Christmas period BHs). 
This corresponds to the 19 + 3.5 remaining = 22.5 days you mention.
The change is just another way of expressing statutory minimum holiday. In summary there are 232 working days per year, so 28/232 is 12.07%.

Assuming the 1060 hours is correct, then you have accrued 127.94 hours holiday. You've taken 136, hence the minus 8.04 hrs
So yes, if you to leave tomorrow you would owe 8 hrs holiday as it looks like this is calculated on a year to date basis, whereas the 3.5 days previously shown is over the whole holiday year.

I therefore think the calculation is correct, but I'd be annoyed at HR for refusing to clarify.

biscan25

I'd also add for completeness that it doesn't look like you are worse of as a result of the change, as the holiday accrual now gives full credit to your overtime hours.

I'm not sure legally if they would be underpaying you on the 'old' system, someone may clarify.

Thrugelmir

lozza97 said:

In November, the company decided that they were going to force us all to take Christmas, Boxing and New Years day off as holiday that would be deducted from our holiday allowance, 

If the Company is closed operationally that's perfectly reasonable. In addition to which the employer only has to give 2 days notice for every day of annual leave that they wish you to take. 

theoretica

If a day is 8 hours, full time = 40 hours and 32 hours a week = 80% of time.

22.5 days is 80% of 28 so your holiday allowance *included* the three days over Christmas, they are not in addition.  Deducting these three days taken off your 22.5 days was correct for a 32 hour contract - though may be muddled with the fact you hadn't been on 32 hours for very long, and are now on 36.

Their new way of calculating looks better for you as it gives you holiday for the extra shifts you take on.  But because it shows you earning holiday month by month, unless you take a lot of your holiday at the end of the holiday year you will sometimes be owed holidays and sometimes owe it.

Undervalued

lozza97 said:

Hello guys!

I was sent a new contract in July 2021 as my hours per week had increased to 32. As of December, I took another increase to 36, but they haven't bothered giving me a new contract to confirm this. It states that we are entitled to '25 days holiday per year, in addition to Christmas Day, Boxing Day and New Years Day, or the pro rota equivalent if you work part time.' On my HR portal, it shows my holiday entitlement was 22.5 days per year, as I am considered part time. 

In November, the company decided that they were going to force us all to take Christmas, Boxing and New Years day off as holiday that would be deducted from our holiday allowance, so they deducted 3 days off of my 22.5 day allowance. We can also take 'open shifts' for extra hours each week if we'd like to boost our hours up - and on average I work 45 per week.

They have now sent out another email saying they are changing our holiday hours and the way it is worked out entirely. They said I worked 1060 hours between July and December. They have the formula down to say:

Step 1: Monthly hours worked x 0.1207 - monthly accrual (hours)
Step 2: Monthly accrual x 12 = annual accrual (hours)

They've said I took 136 hours holiday so far, and have 16 booked in the near future (total of 152 hours) 

It says "what your balance is (hours): -8.04'

According to my HR portal, I still had 3.5 days remaining of holiday, and that was including the deductions they made over the holiday period, and they class a holiday day as 8 hours

The HR team are refusing to give light/clarity on this, and so a lot of us are highly confused as to what all the figures means.

Firstly, would this mean I owe 8 hours holiday? This doesn't make sense given I had 3.5 days left on 32 hours base, but work 45 hours or more on average - so how could it become minus/owing?

Secondly, and most importantly, is it even legal to be doing this? I'm under the assumption there's some sort of a breach of contract here. They've taken bonus holiday we were contracted to have as extra, and now they've changed the holiday hours entirely. No employee has been given anything to say we agree to this change, and it isn't even a proposal but more an instant enforcement of this change. 

If anyone could help, I'd appreciate it!

They can quite lawfully dictate when you take all of your holiday entitlement leaving you with no choice at all!

The 25 plus 3 days you mention for a full time employee is the statutory minimum (i.e. 28 days or 5.6 weeks).

You cannot lawfully be treated less favourably just because you are part time, so you must receive at least the pro rata equivalent.

getmore4less

How are you working your hours?

What sort of pattern.

Your 22.5 would suggest 4 day week to make the 28 for 5.6 weeks

The law changed in 2020 the holiday pay should be worked out on a weeks pay as average of previous 52.

lozza97

Hey guys! 

Thank you so much, it’s shed some light on the mess, that’s for sure! 

Just to make some things the commenters have asked - I work 4 days a week and we don’t get any bank holidays off we are made to work them. We didn’t ever have to take xmas, boxing or NY day off as holiday it was just given as unpaid time off which is why we were all confused this year when they took it from our allowances

General_Grant

lozza97 said:

Hey guys! 

Thank you so much, it’s shed some light on the mess, that’s for sure! 

Just to make some things the commenters have asked - I work 4 days a week and we don’t get any bank holidays off we are made to work them. We didn’t ever have to take xmas, boxing or NY day off as holiday it was just given as unpaid time off which is why we were all confused this year when they took it from our allowances

But your OP said you were entitled to '25 days holiday per year, in addition to Christmas Day, Boxing Day and New Years Day'.  In that case, why were those 3 days unpaid when they formed part of the holiday entitlement?

Undervalued

lozza97 said:

Hey guys! 

Thank you so much, it’s shed some light on the mess, that’s for sure! 

Just to make some things the commenters have asked - I work 4 days a week and we don’t get any bank holidays off we are made to work them. We didn’t ever have to take xmas, boxing or NY day off as holiday it was just given as unpaid time off which is why we were all confused this year when they took it from our allowances

There is nothing special about bank holidays in employment law. As I said earlier, your entitlement is to the pro rata equivalent of 28 days (5.6 weeks) holiday to be taken when the employer chooses.

If the employer is closed on a bank holiday you clearly can't work so that counts as a day of your annual holiday entitlement.

lozza97

They sent out a FAQ over it last month saying:

For the Xmas period Closure Days, do I still need to book them off even if they are not my normal working days?
Yes, you do. Historically, managing these days has been really tricky especially as schedules change and this creates a lot of work to cross-reference who is and isn't scheduled to work on those days and then booking leave for just those people. Having everyone book them off at the same time is not only fairer, but it also saves the team a lot of coordination/admin time. It also saves the business much-needed cash because we won't need to cover those shifts.