Calculation of employment ceased

Find out the number of days represented by the payment received. If this is not clearly shown on the 'verification of payments received' provided by the client, use either of the following formula.

Note extra payments paid to the client (for example holiday pay), should not be included in the gross salary figure used to calculate the daily rate of pay. However these payments will be included in the clients' last 26 and 52 weeks gross earnings.

Formula 1

Determine gross salary over last 52 weeks of employment

Divide by 52 weeks = weekly rate of pay

Divide by 5 days = daily rate of pay

Confirm total amount of holiday pay etc

Divide this amount by daily rate of pay = number of days pay

Formula 2

Determine gross salary over last 4 weeks of employment

Divide by 20 (number of working days in 4 weeks) = daily rate of pay

Confirm total amount of holiday pay etc

Divide by daily rate of pay = number of days pay

Note only calculate the period covered by holiday pay using the applicants' last four weeks income if it does not disadvantage the client. If the income earned in the last four weeks does not reflect what the client normally earned, you may need to request extra weeks or calculate the daily rate of pay using the last 26 weeks gross salary.

Add the number of days pay to the last day the client worked.

This is the date that employment ceased.

Remember, do not count Saturdays and Sundays - use Monday to Friday weekdays only. For example, if a client stopped work on a Friday, add the days from the following Monday.