Calculating Holiday Pay. All you need to know.

, , , | 25th May 2017

Staff on an array of contracts, from zero-hour to full-time, are being tricked out of time off by bosses and company culture according to a recently published article by HR Grapevine. Those on zero-hour contracts are unaware they have holiday either due to their employer’s ignorance of workers’ rights or deliberate ignore the law. Based on figures from the Office for National Statistics, Citizens Advice put the total number of those unaware of annual leave at over 900,000 – or two-fifths of those on temporary contracts.

Synel Time & Asummer-0ttendance Workforce Solution can help employers calculate easily the various types of shifts standard, complex, continental, flexi time, rotating shifts, split shifts, shift matching and breaks everything what has to deal with time and attendance on a single day. It also provides, holiday and absence/sick leave management, real-time employee status display, costing reports, human Resource functions, job costing modules, access control and more, thus helping you increase efficiency, reduce administration work and ensure regulatory compliance.

Lately at Synel UK we are questioned over and over around guidance or possible legislation in respect of calculating correct holiday pay in the workplace. ACAS have confirmed recently they will be assisting further with detailed in-depth guidance but in the meantime, we publish here some items to assist company’s in the decision-making process.

Calculating holiday pay

  • Commission should be included in holiday calculations were statutory holiday periods are being considered (WTR regulation 13).
  • Overtime continues to be the core of many company’s calculations and from various cases it is viewed that guaranteed and “normal“, non-guaranteed should be included but it’s difficult especially in the later to quantify what this represents in the workplace. Voluntary overtime, it’s still not a “clear-cut”area.
  •  Work-related travel – which may now need to be factored in if intrinsically linked and that holiday pay should accrue during periods of sick leave.
  • Holiday in lieu which in the case of employees should only be made on an employee leaving employment.

More detail including quantifying what type of overtime a worker works can be found here.

If you enjoyed this blog post you can also read the 2017 Employment Law Changes you need to be aware of here



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