How should an employer calculate a term-time worker's paid holiday?

Employers must ensure that term-time workers receive at least their statutory minimum annual leave entitlement. The employer can designate periods during the school holidays to be the term-time worker's annual leave.

A worker's entitlement depends on whether or not they fall within the definition of either an 'irregular hours' or 'part year' worker.

Term-time workers are likely to be part-year workers, including where they are paid in equal instalments throughout the year.

For these workers, entitlement accrues throughout the year, at the rate of 12.07% of hours worked in each pay period. Where the worker is contractually entitled to more than the statutory minimum holiday, holiday accrual should be calculated using a different percentage rate. This is calculated by expressing as a percentage the annual holiday entitlement divided by the number of working weeks in the year. Employers can choose to pay rolled up holiday pay for these workers.