Holiday Pay...

clb776

At my husbands work he earns holiday pay based on the amount of hours he works each week because they differ alot each week. The total amount of holiday pay accrued is shown as an amount in the top of the wage slip. When he takes holiday, it starts off as being 'unpaid' and then he has to track the manager down to tell them he wants it as paid holiday.

When taking the holiday pay, they then give him some massive amount as his weeks earnings (i.e he earns on average £150 after tax per week for working around 30 hours). If he takes holiday pay this can be pushed to around £220 after tax. We dont mind this so much as when he is off he earns more than he does when working!

If he doesnt take any paid holiday he then gets the holiday pay he has accrued in one lump sum on the anniversary of his start date.

Technically this means that he does not get the minimum 5.6 weeks per year paid holiday, I just wondered if anyone elses employers had wierd ways of calculating holiday entitlement!

LittleVoice

I expect other employers also don't calculate it in accordance with the law.

RedSoleShoes

This is taken from the government website. As long as he receives this, then he is getting the statutory allowance.

Casual or irregular working patterns
If you work casually or irregular hours it may well be easiest to calculate the holiday entitlement that accrues (accumulates) as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of the hours you worked. The 12.07 per cent figure is:

5.6 weeks' holiday, divided by 46.4 weeks (being 52 weeks - 5.6 weeks) multiplied by 100 = 12.07 per cent

12.07 per cent x 10 hours = 1.21 hours = 72.6 minutes

The holiday entitlement is just over seven minutes for each hour worked.

getmore4less

You should still get 5.6 weeks of no matter how the allowance is calculated.

They can't just put all the acrued hours into a few days. they need to spread them out over 5.6 weeks

kelloggs36

What do you mean? If the employment has ended, surely they should pay you all your accrued hours?

getmore4less

kelloggs36 wrote: »

What do you mean? If the employment has ended, surely they should pay you all your accrued hours?

ON termination that would apply but that is not the situation in this thread.

Flyboy152

From what I understood, from the time the new regulations were put in place (and it is something that I do for my employees), although I encourage everyone to take their full twenty-eight day entitlement (plus bank holidays), if they don't use their full allowance, they get the monetary equivalent at the end of the holiday year. I may be incorrect in assuming this, as it would not make any difference, beacuse I have always done is.

LittleVoice

Flyboy152 wrote: »

From what I understood, from the time the new regulations were put in place (and it is something that I do for my employees), although I encourage everyone to take their full twenty-eight day entitlement (plus bank holidays), if they don't use their full allowance, they get the monetary equivalent at the end of the holiday year. I may be incorrect in assuming this, as it would not make any difference, beacuse I have always done is.

What is the "it" that "would not make any difference"? The assumption that you can pay an employee for holiday not taken? Or, that, whether or not it is correct, you would still do it any way because you always have?

Whether you are correct or not in paying for accrued holiday not taken depends on how much holiday you pay for. On the holiday allowance you have provided, then some could, legitimately, be sold back to you by employees.

Do all your employees work 5 or more days a week?

getmore4less

Flyboy152 wrote: »

From what I understood, from the time the new regulations were put in place (and it is something that I do for my employees), although I encourage everyone to take their full twenty-eight day entitlement (plus bank holidays), if they don't use their full allowance, they get the monetary equivalent at the end of the holiday year. I may be incorrect in assuming this, as it would not make any difference, beacuse I have always done is.

AIUI this is unlawfull for the statutory 5.6 weeks(28 days), but who is going to complain?

The issue you have is that paying(by policy) for unused holiday is an incentive not to take them no matter how much you try to make clear that you want employees to take the holiday.

If you cap this to just those days over the statutory minimum then that would be OK.

clb776

LilyDeTilly wrote: »

This is taken from the government website. As long as he receives this, then he is getting the statutory allowance.

Casual or irregular working patterns
If you work casually or irregular hours it may well be easiest to calculate the holiday entitlement that accrues (accumulates) as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of the hours you worked. The 12.07 per cent figure is:

5.6 weeks' holiday, divided by 46.4 weeks (being 52 weeks - 5.6 weeks) multiplied by 100 = 12.07 per cent

12.07 per cent x 10 hours = 1.21 hours = 72.6 minutes

The holiday entitlement is just over seven minutes for each hour worked.

so to then work it out in the monetary value, I would turn his hourly rate into minutes and calculate his holiday 'pay'.

I guess they cannot truly work out his actual rate as his working hours differ greatly.

Something else I didnt mention is that he can only take PAID holiday if it is a full week. He cannot take random days as paid leave.

LittleVoice

clb776 wrote: »

(a) so to then work it out in the monetary value, I would turn his hourly rate into minutes and calculate his holiday 'pay'.

(b) I guess they cannot truly work out his actual rate as his working hours differ greatly.

(c) Something else I didnt mention is that he can only take PAID holiday if it is a full week. He cannot take random days as paid leave.

(a) if his contracted hours are different on different days, then you need to know what his basic hourly rate is

(b) they could take his hourly rate and pay whatever would be his average day length each time he took a bank holiday - but hours worked in the other days in the week would have to total the number of days multiplied by the average number of hours per day

(c) as the statutory holiday entitlement is 28 days or 5.6 weeks (for someone working 5 or more days a week) then the 8 Bank Holidays take care of 1.6 weeks. That leaves 4 weeks holiday and it is legal for an employer to stipulate the rule that holidays must be taken in complete weeks.