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Bank Holiday Pay

2

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  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What you should get is 0.6 of a days pay above a normal weeks pay
    (which include 4 days and a days holiday)

    AND

    a holiday day off in lieu.
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    edited 23 May 2011 at 10:46PM
    What you should get is 0.6 of a days pay above a normal weeks pay
    (which include 4 days and a days holiday)

    AND

    a holiday day off in lieu.

    No! Not necessarily. As the OP already has 28 days AL plus BHs, the organisation does not have to give her a day in lieu as she has chosen to work the BH and has the min legal entitlement through her AL anyway. Just to clarify! :)


    OP: this:
    Payroll say that the pay for working the bank holiday is already included in our salary, so with the extra 60%, I guess they are saying we would get paid a normal days pay plus 60%.

    is what I think you're misunderstanding. Payroll are correct. Let me explain:

    * Let's say your pay for a month (for ease of understanding) is £2000. In any normal month, that's in your payslip. You are paid at a rate of 100% of your salary.

    * In August, where there's a bank holiday, you would still be paid £2000. Because your BHs are paid for, even though you're not at work. So the bank holiday - even though you're not working - is paid at 100%.

    * If you work a bank holiday, you are paid a normal day plus 60%.

    * So in August you'd get the £2000 (which is your FULL month, which includes the BH at 100%) and an additional 60% for one day, on top. Your normal pay already takes account of the bank holiday, but you get the additional bit, too.

    Does that make sense? You're not being paid 60% for a bank holiday - you're being paid the FULL month (which includes the '1' in '1.6') and then an extra 60% (the 0.6) for the one Bank Holiday.


    This:
    However, as I see it, if bank holidays are not compulsory, the pay can not already be included in the salary, therefore what they have paid is only 60% of what I get paid on a normal day.

    is also where you misunderstand. The pay IS included in your salary. Your annual salary will include (as it does for EVERY EMPLOYEE on a contract like yours!):
    * Days worked
    * Annual Leave days
    * Bank Holidays

    The last two MUST add up to 28 or more altogether to meet the legal min requirements of paid holiday. Yours happen to add up to 36 - which isn't uncommon in the public sector, as it tends to get a generous holiday entitlement overall. All these are paid holiday for you. If you volunteer to work one of those days, you simply get an extra 60% for that day.


    (Also, BHs must be included in your salary, otherwise your statement of "I'm sitting at home being paid a full day for doing nothing" wouldn't work!)


    However, on the issue of double pay / 1.6 pay, your manager was just wrong, that's all. Those who work shifts might get double pay, but you don't, so you'll just have to suck that one up, I'm afraid. There's no legal requirement to pay you any more than normal pay.


    In addition, it's *possible* that getmore4less is right: some companies will give you a day back in lieu if you work a BH. However, as you already get the legal min paid holiday a year, your company might not operate that. Check with them if you get a day in lieu - you might be lucky!


    I hope that makes sense for you; ask if not. :)
    KiKi
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If you don't get the holiday back then you should be paid a minimum of 100% extra not 60%.


    There may be no requiremt to give any extra pay but the holiday pay should still be paid and pay for working the day which should be at a minimum the normal rate so double pay minimum if no day in lieu.
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    edited 23 May 2011 at 11:17PM
    If you don't get the holiday back then you should be paid a minimum of 100% extra not 60%.

    There may be no requiremt to give any extra pay but the holiday pay should still be paid and pay for working the day which should be at a minimum the normal rate so double pay minimum if no day in lieu.


    Why?

    The only entitlement is to 28 days paid leave at 100% of salary. The OP has 36 days of that a year. Therefore if she chooses to work one, and gets some extra pay for it, that's great.

    But she's not legally entitled to any additional pay for it. They only pay more simply because no-one would volunteer to work at 100% when they could be sitting at home for the same amount.

    But she's not entitled to 100% more. :) She's entitled to whatever contractually they offer - which is 60%.

    (If she only had the min paid leave, then yes, they would HAVE to give her a day in lieu, although no extra pay unless they choose to. However, as she has more than the minimum, and as she volunteers to do it, there's no requirement to give her anything extra at all. Of course they do, as an incentive to volunteer.)

    KiKi
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Allthough you can make up any rules you like for the extra days who is going to do overtime for 60% of their normal rate.

    The real way to look at this is the company is buying the holiday for 60% of the value, who would agree to that?


    This sort of approach of not paying 100% extra or TOIL may cause issues with the regulations for part time and shift workers on prorata allocation of a full timers holidays.
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    Allthough you can make up any rules you like for the extra days who is going to do overtime for 60% of their normal rate.

    The real way to look at this is the company is buying the holiday for 60% of the value, who would agree to that?

    Yes, I agree - they are doing exactly that. And clearly some people are agreeing to it! :) But you said they have to give 100%, and they don't - I just don't want the OP thinking she has an entitlement that she doesn't! :)

    This sort of approach of not paying 100% extra or TOIL may cause issues with the regulations for part time and shift workers on prorata allocation of a full timers holidays.

    Not in this case, because it's voluntary. If it were compulsory, then yes, I'd agree with you. But as it's not contractual that they ever work a BH (from what the OP said) and as it can't be enforced, there's no equality issue. You're agreeing to something by choice, and that choice can change at every BH. :) But I do agree that it might cause aggravation. TBH, paying shift workers 100% and non-shift workers at 60% would be enough in any public organisation I've worked in to cause hoo-ha as it is!!! :D

    KiKi
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • hcb42
    hcb42 Posts: 5,962 Forumite
    Allthough you can make up any rules you like for the extra days who is going to do overtime for 60% of their normal rate.

    The real way to look at this is the company is buying the holiday for 60% of the value, who would agree to that?


    This sort of approach of not paying 100% extra or TOIL may cause issues with the regulations for part time and shift workers on prorata allocation of a full timers holidays.

    It is not 60% of normal rate, it is 60% extra for working the day.

    If she had took the day off - pay = 100% of daily rate. By working it it is 160%. In other words, if you want the day off, take it, but if you want to earn a smattrering more cash, presumably in an area where you cannot do normally, then volunteer and work it.

    In most private sector 24/7 businesses you wouldnt even get this.
  • Torry_Quine
    Torry_Quine Posts: 18,876 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    This reminds me of someone I knew who worked in HR and had the same thoughts as the OP. They were entitled to double pay on holidays so obviously the extra was the normal rate which added to the normal pay made double time. They thought though that it should be an extra double pay which I explained would make it triple pay but they just didn't get it.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • lolly-i-pop
    lolly-i-pop Posts: 84 Forumite
    Thanks for all your help.

    Although we do not have to work every bank holiday, one person from each team is effectively forced to do it, and as I said our manager said we would get double time. Even at an enhanced rate, of 160%, this is still not "double". So I still think we have a right to be peeved.

    It has not gone down well with any of us who worked the bank holidays, and I can't see any of us working a bank holiday in the future.
  • LittleVoice
    LittleVoice Posts: 8,974 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If, instead of looking at what is paid for the day's work on a bank holiday, you consider that the company is buying back the day's holiday (allowed because the year's entitlement is more than the minimum statutory amount), then the company should buy it at its full rate, 100%. They can, however, decide that they will pay a different amount for that day's holiday it is buying - which is what this employer is doing.
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