New holiday pay calculator

If we had a pound for every time we’ve been asked about calculating holiday pay, and another for how to work out a zero hours person’s holiday entitlement….well, we’d have an awful lot of pounds by now.

If we had a pound for every time we’ve been asked about calculating holiday pay, and another for how to work out a zero hours person’s holiday entitlement….well, we’d have an awful lot of pounds by now. So hoorah for the government who have launched on-line holiday pay calculator you can access that by simply clicking here.

Some of the other holiday related questions we’ve answered over and over (and over) again:

Who is entitled to holiday?

Employees and workers, self employed people are not, but given there are so many cases of the self employed being ruled to be workers or employees, it pays to be careful.

Paid holiday or holiday pay?

The difference is important – paid holiday happens when a worker takes time off that he would normally expect to be working and receives the same pay as he would if working. Holiday pay is an amount of money given to a worker who will normally not then be paid when he elects to go on holiday. Holiday pay is fine for genuine zero hours workers or people on short contracts of up to a couple of months, it is not fine for longer term workers – paid holiday is a health and safety requirement and rolled up holiday pay (where workers are unpaid when on holiday) is unlawful because it dissuades the person from taking holiday.

How do I calculate holiday entitlement for variable or zero hours workers?

Use the government’s whizzy new calculator or work out the average hours over the reference period you’re looking at and multiply by 0.1207.

What should I include in holiday pay?

Fiendish bit of law this one, and it’s changed hugely over the last couple of years….but here we go – you should include all contractual and normal pay, overtime, commission and bonuses. What is ‘normal’? Well if a person ‘normally’ works and is paid for additional hours over and above their contracted hours for example then it is normal…..if it’s genuinely rare to work additional hours, then it’s not normal and average overtime doesn’t have to be included.

Can an employee pick and choose when to go on holiday?

No, and the employer can refuse holiday requests providing refusals are not unreasonably applied. Safest to have a holiday policy and reference to the notice required for a holiday request in the employment contract.

My employee has overstayed a holiday claiming to be sick, what can I do about it?

Well, for starters, click here.

For more about holidays, see our FAQs and A-Z holidays page.

If you’re thinking of outsourcing your HR or employment law needs, why not contact myHRdept? Call us on 01628 820515 to discuss your requirements or contact us and we’ll call you back.

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