Holidays & holiday pay
- What is a 'normal rate of pay' for holiday pay purposes?
This depends on the contractual status of the worker. In brief,
- A worker who has a set number of contracted hours and a set contractual rate of pay for those hours will receive his contractual rate of pay for the purposes of calculating holiday pay, e.g. for a worker who is contracted to be paid £300 for 4 days a week and 7 hours per day, this will be his 'normal' working week for the purposes of holiday pay. With effect from April 2009, in terms of days we can calculate that he will be entitled to 22.4 days holiday per year (5.6 X his normal 4 days per week). In terms of hours he is entitled to 5.6* X 28 (the weeks holiday multiplied by the normal hours he works in a week) = 156.8 hours per year. If he takes only one day's holiday in the week, his holiday pay will be 1/4 (one day divided by the number of days he normally works) X £300 (his normal weekly earnings) = £75. Optional overtime earnings for this employee is ignored for the purposes of calculating holiday pay.
- A worker who has a set number of hours and a set contractual rate of pay for those hours and who is contractually REQUIRED to work additional hours as overtime will have his holiday pay based on his contractual normal AND overtime hours, but again any further voluntary hours will be ignored.
- A worker who has no normal hours of work (i.e. they vary from week to week and there are no minimum hours guaranteed in the contract of employment) will have their holiday pay based on the average pay earned in the last 12 weeks prior to the holiday being taken. Weeks when the employee did not earn at all will be excluded in favour of the nearest week when the employee did work.
- A worker who is paid through 'piece work' (their earnings are related to the amount of work they do) will have their holiday pay based on an average of the 12 weeks earnings before the holiday similar to '3' above.
*Note, our examples are based on the minimum holiday entitlement effective from April 09 for all workers and employees of 5.6 weeks per annum. From Oct 07 to end March 09 this entitlement was 4.8 weeks.
- How do I calculate how much holiday a part-time employee is entitled to?
- Can I provide ‘rolled up’ holiday pay as a part of the normal rate rather than my employees taking paid holiday?
- How do I calculate holiday pay for casual workers who do not have a regular working week?
- Most of my workers are casual and do not want paid time off. How do I get around this?
- Are all employees entitled to a holiday on a bank holiday?
- What rights do employees have on bank holidays?
- When are the bank holidays?
- What happens when bank holidays fall on a weekend?
- What happens to those workers who normally work weekends when certain bank holidays fall at a weekend i.e. Christmas?
