Variable hours holiday entitlement management in TimeTally

Variable Hours Holiday Entitlement for UK Workers

Calculating holiday entitlement for workers whose hours change each week is one of the most common HR headaches. TimeTally does it automatically — each approved timesheet updates the balance.

Calculate and manage holiday entitlement correctly for every variable-hours worker. Works alongside our holiday accrual calculator, zero-hours contract software, and hours-worked leave accrual.

Accurate entitlement for every variable-hours worker.

TimeTally calculates holiday entitlement correctly for workers on irregular schedules — proportional to actual hours worked each week, updated automatically on timesheet approval.

Entitlement calculated per timesheet

Each approved week of work automatically updates the holiday balance based on hours actually worked.

Accurate for irregular schedules

Works for workers who do 10 hours one week and 40 the next — entitlement always reflects actual hours.

Statutory compliance built in

TimeTally applies UK Working Time Regulations compliant rates, including the 5.6-week statutory minimum.

Workers see their own balance

Self-service access in the TimeTally app — workers always know their current entitlement without asking HR.

Leave requests flow through approval

Variable-hours workers submit leave requests the same way as permanent staff, with manager approval required.

Holiday pay data ready for payroll

Export the 52-week average hours data required for correct holiday pay calculations.

Variable-hours and permanent staff on one calendar

Every worker type managed in the same system. Variable-hours staff accrue entitlement on hours worked; permanent staff get their fixed allocation. Leave requests work the same way for everyone.

All worker types managed in one system

Variable-hours and permanent staff on the same calendar — complete team visibility

Each worker's balance calculated by their own method

Hours-proportional for variable-hours staff, fixed entitlement for permanent employees

Leave requests approved the same way for all staff

Consistent approval workflow regardless of contract type

Variable-hours and permanent staff holiday calendar in TimeTally

Every worker type. Correct entitlement.

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Zero-Hours Workers

Holiday accrues on every approved timesheet at 12.07% of hours worked — no fixed assumption.

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Casual Workers

Casual and bank staff tracked with the same accrual method as zero-hours workers.

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Part-Time Workers

Fixed pro-rata entitlement for part-time staff, proportional to their contracted hours.

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Agency Workers

Agency workers on your payroll managed in the same system as direct employees.

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Permanent Staff

Fixed annual entitlement with carry-over rules and approval workflows.

Custom Contract Types

Configure any contract type with its own accrual method, entitlement, and leave rules.

Simple, Transparent Pricing

One price for all employee types. No surprises.

£2/employee/month

Billed monthly. Cancel anytime.

Variable-hours entitlement calculated automatically
Fixed-hours entitlement for permanent staff too
All worker types in one account
Workers see their own balance in the app
Leave requests and approvals included

Frequently Asked Questions

How do you calculate holiday entitlement for variable hours workers?

12.07% of hours worked (5.6 weeks ÷ 46.4 working weeks). Each week's entitlement is proportional to hours worked that week. A worker doing 20 hours accrues 2.41 hours of holiday; a worker doing 40 hours accrues 4.83 hours.

Are variable hours workers entitled to holiday in the UK?

Yes. All workers — including zero-hours and casual workers — are entitled to 5.6 weeks' paid holiday under the Working Time Regulations 1998. There is no minimum number of hours required to qualify.

How is holiday pay calculated for variable hours workers?

Using the 52-week average of weekly pay (excluding weeks not worked) under the Employment Rights Act 1996. TimeTally's timesheet export provides the weekly hours data required for this calculation.

Do variable hours workers accrue holiday during gaps in work?

No. Holiday accrues only on weeks where hours are actually worked. Weeks with no hours do not count towards the accrual, but they are also excluded from the 52-week average holiday pay calculation.

Can a variable hours worker carry over unused holiday?

Yes, in certain circumstances. If a worker was unable to take holiday due to sickness or other statutory reasons, they may carry over up to 4 weeks under the Working Time Regulations.

What if a variable hours worker is paid rolled-up holiday pay?

Rolled-up holiday pay — adding holiday pay to each pay packet rather than paying it when leave is taken — was confirmed as permissible under the 2023 Retained EU Law Act amendments for irregular-hours workers, provided it is calculated and identified separately in the pay slip.

How does TimeTally track variable hours holiday entitlement?

Each approved timesheet triggers an accrual transaction — hours worked × accrual rate is added to the worker's holiday balance. Balances are always up to date and visible to both workers and managers.

Give every worker accurate holiday entitlement.

See everything TimeTally offers. Variable-hours entitlement calculated automatically — no spreadsheets, no manual maths.

No credit card required · Free 14-day trial · Cancel anytime