Holiday pay (average of previous 12 weeks)?

DizzleUK

Holiday pay is only paid on your contracted hours. If you work regular overtime, then this is not paid as holiday unless it is written into your contract or the overtime is guaranteed overtime.

This was the issue I had with my previous placement. I was contracted for 20 hours per week, but worked 37.5 hours every week for the whole year. If I took a week off, I was paid for 20 hours, as these were my contracted hours. Whilst the overtime was regular, it was not guaranteed and could be taken away at any time, and therefore not payable.

MikeR371

I came here to ask a similar question and found this thread. To me though I can't see that this has been clearly answered.

My contract says nothing about holidays and overtime. I'm contracted for 3 days a week but have been working 5 for over six months now. The directgov advice on holidays says that holidays should be based on your "normal working week" and doesn't mention contracted hours, but several posters here seem to be saying it's based purely on contracted hours.

Does anyone know if there is a definitive answer?

liney

http://www.direct.gov.uk/en/Employment/Employees/WorkingHoursAndTimeOff/DG_10028439

Overtime and payment for time off

Overtime isn't usually taken into account when working out holiday pay or paid maternity, paternity or adoption leave. However, it is taken into account when the overtime is guaranteed and you have to work the overtime as part of your contract of employment.




The 12 week rule is for casual workers and/or temps, who work irregular hours.

ohreally

I would expect holiday pay to reflect what one would have been paid had they been at work...any shift enhancements, on-call allowances etc etc.
If your worked hours are consistently more than the contracted hours i would have an expectation of that being recognised.

Savvy_Sue

ohreally wrote: »

I would expect holiday pay to reflect what one would have been paid had they been at work...any shift enhancements, on-call allowances etc etc.

I fear you'd be wrong: it's quite common for holiday pay to be based on basic, without any enhancements or allowances.

ohreally wrote: »

If your worked hours are consistently more than the contracted hours i would have an expectation of that being recognised.

Yes, it would be worth asking for it to be confirmed, although some companies might respond by reducing you to the contracted hours and find some other way of getting the hours covered.

thefishdude

my job involes overtime ever week and the amount varies each week. but the holiday pay is based on contracted hours only and i work for a very large employer

paddedjohn

thefishdude wrote: »

my job involes overtime ever week and the amount varies each week. but the holiday pay is based on contracted hours only and i work for a very large employer

Overtime is not taken into account for holiday pay. How many hours are you contracted for?

zzzLazyDaisy

MikeR371 wrote: »

I came here to ask a similar question and found this thread. To me though I can't see that this has been clearly answered.

My contract says nothing about holidays and overtime. I'm contracted for 3 days a week but have been working 5 for over six months now. The directgov advice on holidays says that holidays should be based on your "normal working week" and doesn't mention contracted hours, but several posters here seem to be saying it's based purely on contracted hours.

Does anyone know if there is a definitive answer?

Holiday pay is calculated by reference to your contracted hours. This is what is meant by 'your normal working week'. Overtime and extra hours are not included when working out holiday pay. As others have said, the exception is where an employee is not contracted to work a certain number of hours - this will usually be workers on a zero hours contract, or casual/ relief/ bank staff - for those people the holiday pay is calculated by reference to the last 12 weeks actually worked.

I agree that this may seem unfair for someone who regularly works extra hours over and above their contractual hours, nevertheless this is correct in law.

melvis

In my OH's last job, his holidays were worked out using an average of his last 8 weeks work but that's because he didn't have a set number of contracted hours. He started at a set time every day and went home when he'd finished what needed doing.

In my job, I get paid my contracted hours of 35 per week despite the fact I often work 40-45 hours per week.

HTH xx