We have taken on a new employee, who will be full time when she relocates, but is currently to be paid only for the actual days she works. She gets 30 days holiday per year and paid bank holidays.
She has worked 1 day in September, 2 in October and 12 in November.
She thinks I should calculate her payment by working out the proportion of the working month she worked and multiplying by one twelfth of her annual salary. So for September 1/21 x annual salary/12, for October 2/23 x annual salary/12 and for November 12/21 x annualy salary/12.
I thought I should work out a day rate which is annual salary divided by 261 (365 minus weekends), then calculate her pro rata holiday entitlement and pay her back for that when she actually starts properly full time…
Or calculate a higher day rate which is annual salary divided by 223 (365 minus weekends, minus bank holidays, minus holidays)and not pay her for any holiday/bank holiday.
Can anybody tell me what is correct?