Holidays - Q. for employers

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Also posted in the small business forum but hope someone here maybe able to offer guidance?

I have a question about holiday pay…….

We employ a lot of seasonal workers and as such are on zero contracted hours and are casual workers thus making their holiday very hard to calculate. I don’t believe that the current system fairly works out holiday, although it uses a 12 week average I don’t believe the calculations of days are correct for the casual workers.

I was looking at the guidance on casual workers holiday pay being 12.07% of worked hours. I assume this means that there is a pool fund of holiday as such ie every time they work more holiday is accrued in hours. Could someone give a bit more detail on this way of accruing and more importantly paying holiday?

In addition in our contracts we have a maximum working week of 37.5 hours and anything over is overtime so not included in the holiday calculation. Fore example the maximum holiday someone would receive is £43.50 for one day (7.5 hours at £5.80). Calculating accrued holiday based on 12.07% of worked hours would go over this amount, is there anyway of avoiding this?

Comments

  • ohreally
    ohreally Posts: 7,525 Forumite
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    Mudd14 wrote: »
    Also posted in the small business forum but hope someone here maybe able to offer guidance?

    I have a question about holiday pay…….

    We employ a lot of seasonal workers and as such are on zero contracted hours;
    I don’t believe that the current system fairly works out holiday;

    Calculating accrued holiday based on 12.07% of worked hours would go over this amount, is there anyway of avoiding this?

    Rather than looking at reducing or avoiding this issue, why don't you take the moral and ethical lead and provide these low paid workers some security by offering a contract with set hours and providing access to a clear and transparent holiday framework that is fair and equitable?

    Set up a working group with the employer and the workers to seek agreement on a way forwards and to impliment changes.
    Don’t be a can’t, be a can.
  • Mudd14
    Mudd14 Posts: 856 Forumite
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    While part of me agrees by having set contracted hours would make like better and easier for everyone in reality in the hotel field this is not possible.

    When there is no work available the employer would be left with thousands of employees on guarenteed contracted hours making the employer liable for paying these hours. With profit margins so small the compnay would not be able to sustain this for over 1 week!
  • Willsnarf1983
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    ohreally wrote: »
    Rather than looking at reducing or avoiding this issue, why don't you take the moral and ethical lead and provide these low paid workers some security by offering a contract with set hours and providing access to a clear and transparent holiday framework that is fair and equitable?

    Set up a working group with the employer and the workers to seek agreement on a way forwards and to impliment changes.


    Not everyone is out to screw employees you know, there is demand and supply in every business and in seasonal ones the demand becomes greater as the supply becomes greater...hence the temp workers!

    I personally would shy away from creating a working group because the employer ends up giving away more than they really want to, it also creates unionised feelings amongst the workers and could cause hassle in the long run.

    Will
    SShhhhhhhhhhhhhhhhhhhhhhh
  • Lakeuk
    Lakeuk Posts: 1,084 Forumite
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    Surely you know year to year when the quiet periods are likely to be, I lot companies in this sort of situation will employ staff on annualised hours, guaranteeing a certain number of hours over the year to cope with busy / quiet times.

    Sounds like bad management if you can not guarentee someone a minumum number of hours over a set period
  • Mudd14
    Mudd14 Posts: 856 Forumite
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    If you are able to predict the business of how mnay rooms 150 hotels sell on a year by year basis you should be working in the industry ;)
  • jazzyman01
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    Suggest that you contact Business Link - they will be able to give you guidance. Alternatively ACAS may be able to give you some advice.
  • alunharford
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    I'm not sure you'll get great advice here about how to screw your employees so they get less holiday than they're entitled to.

    And I'm speaking as an employer...
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
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    I have worked for random, miscellaneous temping agencies. Each one of these has given me a payslip with my holiday pay accrued showing.

    So, if I'd worked for one for just 10 hours, my payslip would say:
    Pay for 10 hours at £X = ....
    Holiday pay: 1.207 hours

    Then, if that were all I did, and the contract finished, they'd issue me with a P45 that would show:

    Worked: 11.207 hours at £X/hour ....

    And I'd be paid that much.
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