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Buying and selling holiday
If an employee requests to buy holiday we understand that we need to check that this doesn't bring their pay below NMW. When we do the calculation for a salaried worker do we deduct the purchased holiday hours from the total annual hours worked. E.g if someone earns £25000 and is paid based on 260 days x 7.5 hours pa (1950 hours). Hourly rate = £12.82ph. If they are entitled to 28 days paid holiday, but want to buy an extra 2 days in, say, the last 6 months of the holiday year, is it correct to say that the calculation of their hourly rate becomes: 15 x £12.82 = £2884.50. Salary payment total for final 6 months = ((£25,000/2) - £2884.50) = £9,615.50. Hours worked in final 6 months = (1950/2) - 15 = 960 hrs So, hourly rate is £10.02 ph and therefore below NMW?