9 things employers must remember when it comes to holiday pay
- Employees and workers are entitled to 28 days (5.6 weeks) paid holiday per year (and this should be pro rata’d for part time workers).
- As an employer you can include bank holidays as part of statutory annual leave.
- Holiday accrues during sickness, maternity, paternity and adoption leave.
- The “use it or lose it” principle applies but …
- … holiday can be re-scheduled if your employee/worker was sick and/or unable to take their planned leave.
- Payment in lieu of accrued but untaken holiday should only be paid on termination of employment.
- Holiday pay should include results based commission.
- Holiday pay should include compulsory as well as guaranteed overtime.
- Holiday pay should also include any voluntary overtime the employee regularly works as this is considered ‘normal remuneration’ when it comes to calculating holiday pay.
If you’d like to discuss anything related to holiday pay or holiday allowance (or anything else relating to HR or employment), please email us at firstname.lastname@example.org or call us on 0114 276 5555 today.