Managing a business means ensuring your employees feel valued. One way to do this is by offering benefits, such as holiday pay. But what about part-time employees? Are they entitled to holiday pay, too?

The answer isn’t simple. It depends on where your business operates and its internal policies. Various countries have specific laws about holiday pay. In this blog, we’ll explore these rules and show you how part-time employees might be entitled to holiday pay.

Do Part-Time Employees Get Holiday Pay?

Part-time employees' eligibility for holiday pay depends on the country's laws. Let’s explore how it works in different regions:

1. Canada

In Canada, part-time employees do get holiday pay. However, their holiday pay is adjusted based on the number of hours they usually work. Part-timers are entitled to the same holidays as full-time employees, but the pay they receive is proportional to their work schedule. For example, if they work on a public holiday, they are entitled to 1.5 times their normal wage.

2. Australia

Australia has clear rules for part-time workers. They are entitled to the same leave entitlements as full-time workers but calculated on a pro-rata basis. This means part-time employees receive holiday pay in proportion to their working hours. If an employee works half the hours of a full-time worker, they are entitled to half the leave and holiday pay. Fair, simple, and straightforward.

3. United Kingdom

In the United Kingdom, part-time employees have similar rights to full-time workers. They receive 5.6 weeks of holiday each year, just like full-time employees, but calculated on a pro-rata basis. While employers don’t have to offer bank holidays off by law, they often include this in contracts. Essentially, part-timers are guaranteed the same rights, just scaled to their working hours.

4. United States

Things are quite different in the United States. There’s no federal law that mandates employers to offer holiday pay, even for full-time employees. Holiday pay is considered a perk rather than a requirement. The Fair Labor Standards Act (FLSA) ensures minimum wage and overtime pay, but not paid holidays. That said, companies often offer holiday pay as part of their benefits package, especially for part-time workers.

So, whether a part-time worker gets holiday pay in the U.S. comes down to company policy, not federal law.

How to Calculate Holiday Pay for Part-Time Employees

The way holiday pay is calculated for part-time employees depends on the laws of the country and the company’s internal policies.

1. Canada

In Canada, a straightforward way to calculate holiday pay is based on the employee’s average hours. If a part-time worker averages four hours per day, they would receive four hours of holiday pay at their regular rate. If they work on a holiday and the law mandates overtime, they would be paid for six hours (1.5 times the regular rate).

Read More: Employer of Record (EOR) in Canada | Gloroots

2. Australia

In Australia, holiday pay is calculated similarly. If a part-time employee works three days a week, their holiday entitlement is based on these working hours. For instance, if they work 60% of the time compared to a full-time worker, they receive 60% of the full holiday pay.

3. United Kingdom

In the UK, holiday pay for part-timers is based on the average hours worked. For example, if a part-time employee works three days a week, they are entitled to three-fifths of the holiday pay that a full-time worker would receive.

Read More: Employer of Record (EOR) in United Kingdom | Gloroots

4. United States

In the United States, employers decide how they want to calculate holiday pay. A typical approach is to calculate holiday pay based on the average hours a part-time employee works. If they work 20 hours a week, they would receive holiday pay based on their usual working hours.

Read More: Leave Policy in USA: Leave Regulations & Holidays - Gloroots

Examples of Holiday Pay for Part-Time Employees

Let’s look at a few examples to make this clearer.

1. Canada

In Canada, let’s assume a part-time employee works 25 hours a week, typically five hours a day. On a public holiday, they would be entitled to five hours of holiday pay. If they work that day, they would receive seven and a half hours of pay, because of the 1.5x overtime rate.

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2. Australia

In Australia, a part-time worker who works 60% of a full-time worker’s hours would get 60% of the holiday pay. So, if a full-timer gets paid eight hours for a holiday, the part-timer would get 4.8 hours of holiday pay.

Read More: How to Hire in Australia? - Gloroots

3. United Kingdom

In the UK, if a part-timer works three days a week, they are entitled to three-fifths of the holiday pay a full-time worker receives. So, if a full-timer is entitled to eight hours of holiday pay, the part-timer would get 4.8 hours.

Explore more: How to Hire Employees in the UK? - Gloroots

4. United States

In the United States, since there is no federal law requiring holiday pay, a company might choose to give part-time employees pay based on the average number of hours they work. If an employee works 15 hours a week, their holiday pay would be calculated based on that.

Explore more: How to Outsource Work From The US to India

Why Offering Holiday Pay Matters

Holiday pay is an important benefit for employees, including part-timers. It makes them feel valued and improves job satisfaction. This is especially true for companies in countries like the U.S., where holiday pay isn’t legally required. Offering it can give a company a competitive edge and help attract and retain talent.

In countries where holiday pay is required, like Canada, Australia, and the UK, ensuring part-time employees get fair holiday compensation is crucial for compliance and maintaining employee morale.

Conclusion

Navigating holiday pay for part-time employees across different countries can be complex. With varying labor laws, compliance becomes a daunting task for businesses. Gloroots is here to streamline your global employment needs. Our platform offers comprehensive solutions; from ensuring compliance with local labor laws to handling payroll in 100+ local currencies. Whether it’s managing holiday pay, invoicing, or contracts, Gloroots provides 24/7 support and a seamless dashboard experience for employers and employees alike. Simplify your global expansion with Gloroots today.