How are holiday entitlements calculated for starters and leavers?

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Within your organisation, there may be different terms and conditions between groups of employees for annual leave. Therefore, you may need to have multiple holiday entitlement schemes to establish full time entitlement. A particular scheme can then be applied to an individual employee.


Although the starting point of an entitlement is the full time, full year entitlement for all employees, a pro rata calculation may then be applied to this full entitlement for part time employees and starters and leavers within an entitlement period.

When the holiday period does not encompass a full year (ie. when an employee starts or leaves mid-year), then the allowance needs to have a pro rata calculation applied. This will be based on calendar days and is not related to the employee’s work pattern.


The holiday year runs from 01/01/2019 to 31/12/2019.  A new employee starts on 01/05/2019. The full time entitlement is entered as 35 days, with a start date of 01/05/2019 and an end date of 31/12/2019, and then calculated. The period pro rata takes the calendar days in the period (245) divided by the calendar days in the year beginning with the start of the allowance. This gives a factor of 0.67 (eight out of twelve months).

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