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.
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