lump sum for missed holiday will i lose benefits?

lumpaywk

My work has proper messed up my holiday this last year meaning I have quite a lot that I was unable to take and our year end is this month. They have offered to pay me for the days worked but with 4 kids i get housing benefit and child tax credits.

If i get this lump sum will i ten just lose my benefits this month rendering it not only pointless but a royal pain as I have to be re-assessed twice.

does anyone know if I could get them to pay me with vouchers if this will affect it?

I am talking almost 6 months worth of holiday (as i work 12 hours shifts its 13 days). so they are not keen at all on me rolling the holiday over.

Also does anyone know where i would stand legally speaking as I was told I had a specific number of days left i can take then at the end of the year finding out they had used the wrong data and I had not been given my full amount?

Thank you for any advise

pmlindyloo

Have a read of this as regards holidays and pay.

http://www.adviceguide.org.uk/england/work_e/work_time_off_work_e/holidays_and_holiday_pay.htm

You need to look at your contract as statutory holiday pay may not be rolled over to the next year but if you are given contractural holidays then this may be able to be rolled over.

If the holidays could be rolled over then this would solve the problem so look at your contract of employment.

How much money are we talking about?

As regards the child tax credit this will make no difference at the moment as tax credits is based on the previous tax year's income.

As regards HB then this will depend on whether the extra money is treated as income or capital.

Hopefully HousingBenefitOfficer may know the answer.

I can find nothing in the legislation that covers this particular scenario, only when holiday pay is being given at the end of the contract.

In the event of no one knowing then you will need to speak to the council and ask.

lumpaywk

I started in May so When I was reassessed after being out of work for a week I gave them my salary 18k the holiday adds up to around 1k. I gave them my contract as my new salary was much lower than my old (had to leave job so took what was available) to base the amount on.

lumpaywk

sorry i meant may 2013 so it was 18k i forgot how far through the year we are. I have not had a pay rise this year so it is due to be the same again. I am salary and I dont get overtime.

pmlindyloo

Have you looked at your contract yet?

Employers cannot make a payment in lieu for any missing holiday not taken unless it is contractural holiday entitlement.

Can untaken leave be carried over to another leave year?
The Working Time Regulations 1998 do not entitle a worker to carry leave over
into the following leave year. Neither may unused leave be replaced with a
payment in lieu except where employment is terminated. However, the contract
may allow contractual leave over and above the minimum entitlement to be
carried over or attract payment in lieu, if agreed. (ACAS)


It is important that you find out whether this is contractual leave or not.

If it isn't contractual leave then your employer cannot make a payment in lieu.

This is important because it will make a difference to how your benefits are affected.

lumpaywk

I am still waiting on my p60 though I started on 10th May so should be about right I will dig out my payslips as should be on there.

Not sure what you mean by contractual holiday it is in my contract that I get 31 days pro rata so 22 days . I hope this helps.

pmlindyloo

lumpaywk wrote: »

I am still waiting on my p60 though I started on 10th May so should be about right I will dig out my payslips as should be on there.

Not sure what you mean by contractual holiday it is in my contract that I get 31 days pro rata so 22 days . I hope this helps.

It sounds as if you are getting contractual holiday as statutory holiday would be 28 days (pro rata). Perhaps you could ask your employer?

(Statutory is laid down by law. Contractual is what your contract says - but must not be less than Statutory)

Does it say anything in the contract about being given pay in lieu of holiday?

So now we are , as regards HB (I'll let others sort out the tax credits) back to whether this will be treated as income or capital.

Are they going to pay this at the end of the month and itemise it on your payslip? How will it be worded? Holiday Pay/something else? Will it be taxed?

I now this all sounds a bit unnecessary but certain payments are not taken into account for HB purposes.

You mentioned vouchers. Have they suggested this?

lumpaywk

There is nothing in the contract about being paid the holiday. Basically my manager messed up and they have said i could roll it or get paid for it. As I already get loads of holiday I was hoping to get the cash but at the same time i want to keep the cash otherwise I may as well say i will roll the days.

I should be talking with management on Tuesday when i am next in but wanted an idea before i thought of anything. The vouchers came about as i know the company used vouchers to compensate people when they messed up the payroll a month ago so it wouldn't affect there tax.

What I am looking for is a way that the company could pay me keep it on the books but I avoid losing it in my child tax credits or housing benefit. I was thinking vouchers could be a salary sacrifice would this work? do you have to have a specific scheme for that?

specialboy

pmlindyloo wrote: »

Have you looked at your contract yet?

Employers cannot make a payment in lieu for any missing holiday not taken unless it is contractural holiday entitlement.

Can untaken leave be carried over to another leave year?
The Working Time Regulations 1998 do not entitle a worker to carry leave over
into the following leave year. Neither may unused leave be replaced with a
payment in lieu except where employment is terminated. However, the contract
may allow contractual leave over and above the minimum entitlement to be
carried over or attract payment in lieu, if agreed. (ACAS)


It is important that you find out whether this is contractual leave or not.

If it isn't contractual leave then your employer cannot make a payment in lieu.

This is important because it will make a difference to how your benefits are affected.

Another reason that I keep saying not to listen to ACAS as they are useless, you are allowed to carry over upto 1.6 weeks of your stat min leave with the agreement of the employer, anything over stat min is obviously negotiable.

pmlindyloo

pmlindyloo wrote: »

Have you looked at your contract yet?

Employers cannot make a payment in lieu for any missing holiday not taken unless it is contractural holiday entitlement.

Can untaken leave be carried over to another leave year?
The Working Time Regulations 1998 do not entitle a worker to carry leave over
into the following leave year. Neither may unused leave be replaced with a
payment in lieu except where employment is terminated. However, the contract
may allow contractual leave over and above the minimum entitlement to be
carried over or attract payment in lieu, if agreed. (ACAS)


I must admit the ACAS information isn't explained very well.

You are right in one way about the 1.6 weeks being carried over but it is only if the contract states this (EU law says you must have 4 weeks and this cannot be carried over)

If there is nothing in the contract then the extra holiday leave is lost.

http://www.findlaw.co.uk/law/small_business/employment_law/other_employment_law_topics/know_how_much_holiday_to_give_your_staff/1567.html

Of course an employer can agree to anything and that would be fine.

In this case it seems the OP has contractual leave anyway so it can be rolled over or paid in lieu (as now it seems the employer has says)

Still doesn't answer the OP's original question though. Will the lump sum affect her Housing Benefit.

lumpaywk

Thanks for the advice but it's true, the issue isn't if I will get it but how can I keep it as opposed to the government.