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Zero hours contracts and annual leave

annual leave entitlement for zero hour contracts

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I wonder if anyone could help with an issue we are having around calculating leave for workers on zero hour contracts.

I have only recently come into the organisation and I have been tasked with updating some of the contract details for existing staff to make the language used more helpful to existing staff and new starters who are unaware of the pitfalls and benefits of zero hours contracts.

The contract currently states the following in relation to acruing leave:

"during the first year of your employment, the amount of holiday you are able to take will be limited to that which you have accrued. For this purpose you will accrue holiday entitlement at the rate of 1/12th of your annual entitlement 28 days) for each month of service from your date of commencement. In each subsequent year you will accrue holidays at the rate of 1/52nd of your annual entitlement for each week worked."

In this example, an employee works 11hrs a day for £7.50 an hour for 5 days a week, my question is how much leave based on the above statement can he or she expect to accrue in a week?

Some of our staff are clearly confused what leave they accrue, myself included, I would be very grateful for any advice you could offer.


Many thanks,


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By CitrusHRSherry
10th Dec 2015 14:34

Hi Dan,

We changed the wording that we use in our standard zero/casual hours contracts for the above reason - it's really difficult to work out how to actually calculate the hours!

We now say that you are entitled to a pro-rata amount of 5.6 weeks holiday and that you accrue holiday at a rate of 12.07% per hour. So on the basis of your example above, if someone has worked 55 hours in a week that would equate to 6.6 hours.

Hope that helps!


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