Holiday Entitlement & Holiday Pay: A Guide for Nannies and Families

Holiday entitlement doesn't have to be complicated , it just needs explaining properly. Whether you're a nanny trying to understand your holiday entitlement, or a family employing one for the first time, this guide from Kindred covers everything: UK statutory holiday rights, how to calculate them for different working patterns, and how to keep the arrangement fair for everyone. We've also shared a link further down to a simple holiday tracker to help keep on top of it all.

The Legal Minimum

Every employed worker in the United Kingdom is entitled to annual leave. Their entitlement is accrued over the course of the year and worked out on a pro-rata basis based on the number of days and hours worked.

For a nanny working a standard five day week, they would be entitled to 5.6 weeks of annual leave, which translates to 28 days of paid holiday a year, including the 8 Bank Holidays. It is important to note that if a nanny works on a Bank Holiday rather than taking it off, that day isn't lost from their entitlement even though Bank Holidays are counted within the 28 days. If a Family family requests for a nanny to work that a nanny works on a Bank holiday Holiday, then they are still entitled to that day, but it would be in lieu.

In practice, this means the day gets carried over and taken as an alternative day off at another point in the year, rather than the nanny simply working the Bank Holiday for nothing in return. There's no legal requirement for a nanny to be paid extra such as an enhanced rate for working a Bank Holiday, nor an automatic right to insist on a substitute day off; these are things the family and nanny can agree between themselves.‍

It's worth setting this out clearly in the contract so both sides know what to expect if a bank holiday is worked rather than taken. Employers can always offer more than the statutory minimum, but they can not offer less

How Holiday is Calculated: Full-Time and Regular Part-Time Nannies

If a nanny works the same fixed hours every week throughout the year, the calculation is straightforward:

Days worked per week x 5.6 = annual holiday entitlement (in days)

For example:

A nanny working 5 days a week is entitled to 5 × 5.6 = 28 days
A nanny working 4 days a week is entitled to 4 × 5.6 = 22.4 days
A nanny working 3 days a week is entitled to 3 × 5.6 = 16.8 days

Where a calculation results in a fraction of a day, employers must round the figure up, never down, to the nearest half day.

If a nanny works irregular hours, it's recommended that the holiday entitlement is calculated in hours.

The reason for this is that 'one day' does not have a standard value if the hours are irregular throughout the year. If a Nanny nanny predominantly requested leave during the shorter working days' then the employer might run the risk that the employee is not receiving the statutory minimum amount of holiday that they are legally entitled to.

It's important to remember that it's the employer's responsibility to ensure that their employee paid holiday for the year meets the minimum entitlement.

In practice, if a nanny requests time off, the number of hours deducted would be calculated from the typical hours worked on that particular day.

If you would like clarification on how to calculate the hours for your nanny, do not hesitate to reach out to your Kindred Consultant or use the GOVT holiday entitlement calculator.

Who Chooses the Holiday Dates?

There's no single legal rule dictating exactly how holiday dates must be agreed, which is why it's essential to set this out clearly in the nanny's contract at the point of job offer, before the role starts, not after.

A common and fair approach many nanny-family relationships use is a 50/50 split: the employer (the family) selects two weeks of the year when the nanny must take holiday, often to align with the family's own holiday plans, and the nanny chooses when to take the remaining two weeks to suit their own life. For example, a nanny entitled to 28 holiday days means the family is able to pick 14 and the nanny picks the other 14.

A few practical points worth building into any agreement:

Notice periods. Both parties are required to give reasonable notice before booking holiday, and requested dates should generally be convenient for the family's childcare needs.
Extra family holidays aren't part of the nanny's entitlement. If a family chooses to go away or take more than their allocated amount of days to use in the nanny's leave, those additional days should not be deducted from the nanny's own holiday choice. Unless otherwise agreed, this extra time counts as additional paid leave that the family needs to pay the nanny for, over and above their standard entitlement.
Holiday pay must reflect a nanny's normal pay. For nannies with fixed hours and a fixed salary, this simply means their usual day's pay for each day of leave. For nannies whose pay varies for example pro rata or a family assistant nanny, holiday pay should be based on their average earnings over the previous 52 weeks in which they were actually paid, skipping any unpaid weeks and looking further back if needed to find 52 paid weeks to average.

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Keeping a Shared Record

It is now a legal requirement to keep track of any present and past employees annual leave records. This information needs to be kept and stored for six years. The employer should keep a running log of holidays taken, holidays remaining, and who has “used” which days. Any disputes or confusion over annual leave should be clearly noted and stored.

To help you easily track holiday allowances, you can download Kindred's Holiday log-book here.

Sickness, Pensions, Lieu and other Related Entitlements

A couple of related points often come up alongside holiday discussions:

Nannies continue to accrue holiday entitlement even while off on statutory sick pay, and (where relevant) during maternity, paternity or shared parental leave.
If a nanny leaves a role having taken less holiday than they've accrued, they're entitled to be paid in lieu of the unused days as part of their final pay. If they've taken more holiday than they've actually accrued at the point of leaving, most contracts allow the family to deduct the value of the overtaken days from the final salary. This should always be set out clearly in the contract in advance, so it isn't a surprise for either party.

Getting it Right From the Start

The golden rule for both nannies and families is simple: make sure the contract, at the point of job offer, clearly sets out the calculated holiday entitlement, who chooses which weeks and how bank holidays will be treated. A little clarity upfront can help avoid almost all of the disputes that tend to arise later.

And remember, it's the employer's responsibility to ensure their employee takes their full annual leave entitlement for the year.

If you'd like help working out the exact entitlement, our consultants are always here to help and guide you through the process!