Taking holiday after maternity

Beckys86

Hi

Hoping someone will be kind enough to offer some advice.

I went on maternity leave in January which is due to end in November. However, I have 4 weeks' holiday owing to me and I have chosen to take these at the end of maternity leave meaning I will actually return to work in December. I'm going back to work part time so my question is, will the holidays be paid at the full time rate or part time? My employer has indicated it will be part time but I don't think that's right.

Thanks in advance.

Becky

getmore4less

If they pay at the part time rate you will just be off for longer to use up the holiday.

If the length of the days changes they need to do the calculations in hours.

Don't forget you accrue during maternity

Much easier if they use up the holiday on your old rate and transfer to the new part time pay on the actual return to work where you start accruing at that rate.


If they are getting the pay wrong have they got the holiday correct?

Savvy_Sue

I would pay the accrued holiday f/t. Although it may get complicated if you're not using all of it: we have someone returning soon who is coming back to a different job on a different rate of pay and not taking ALL her leave before she returns so I need to give thought to how we work that out.

getmore4less

Savvy_Sue wrote: »

I would pay the accrued holiday f/t. Although it may get complicated if you're not using all of it: we have someone returning soon who is coming back to a different job on a different rate of pay and not taking ALL her leave before she returns so I need to give thought to how we work that out.

Holidays accrue in hours/days/weeks

Holiday is paid at the "weeks pay" rate at the time it is taken.
(weeks pay is defined in the employment act)

You can use the average method over the previous qualifying weeks but in most case for pay rises easier to use the new rate of pay(which is what you probably do when people get pay rises).

For pay reductions then you may want to look at averaging in the first 3 months

If the hours have changed then mapping the hours onto the new ones is the way to go but for small changes like a 37.5 to 40 hour week just mapping days may be a simple solution.

I think it is good practice to make it clear to the employee how you calculate it and this highlights any rounding up(good will) you have done

Savvy_Sue

Yes, it's a pay reduction but no change to no. of hours. She's been off since Jan, and it's entirely possible that we will be roughly straight by the time she comes back, ie the paid leave she's tacked on to end of m/l will be roughly what she's accrued while off, leaving about the right amount due in the final 3-4 months of the year! I just need to check that ...

getmore4less

Savvy_Sue wrote: »

Yes, it's a pay reduction but no change to no. of hours. She's been off since Jan, and it's entirely possible that we will be roughly straight by the time she comes back, ie the paid leave she's tacked on to end of m/l will be roughly what she's accrued while off, leaving about the right amount due in the final 3-4 months of the year! I just need to check that ...

The law is clear that the holiday pay is the pay at the time it is taken not the time it is accrued.(subject to averaging if required)

I can see a much easier sell to the employee if the accrue dates/pay line up.

The easiest way is to reamind that ALL holiday accrued during maternity is tagged on the end so it can be paid at the old rate if they want to keep some back a gentle reminder that it will be at the new rate.

NOTE: that if they wanted to take more holiday than accrued that should also be paid at the old rate.

Holiday accrual/use rules only apply in the starting year.

KiKi

You accrued holiday at the rate you were working before you went on Mat leave. So rather than saying you have 4 weeks, you have 20 days owing.

If they want to pay you part time (say, 3 days a week), then you'd have nearly 7 weeks' holiday. If they want to pay you full time, then you have 4 weeks to take. But you're owed the 20 days.

As I understand it (but not certain from a legal perspective), the holiday has to be taken as per your previous hours, so 20 days over 4 weeks rather than 20 days over 7 weeks. You then become part time when you actually return.

getmore4less

KiKi wrote: »

You accrued holiday at the rate you were working before you went on Mat leave. So rather than saying you have 4 weeks, you have 20 days owing.

If they want to pay you part time (say, 3 days a week), then you'd have nearly 7 weeks' holiday. If they want to pay you full time, then you have 4 weeks to take. But you're owed the 20 days.

As I understand it (but not certain from a legal perspective), the holiday has to be taken as per your previous hours, so 20 days over 4 weeks rather than 20 days over 7 weeks. You then become part time when you actually return.

As that(taking 20 days over 4 weeks) is not a requirement holidays yo ucan take 1 day a week over 20 weeks if you want(and employer agrees)

I don't see how it can be with a change in hours you could still take 1 daya week over 20 weeks.

IMO there is also a common misunderstanding on how this works.

You don't really accrue in the sense of days per month all your holiday allowance is usable from the begining of the holiday year and available to be used at any time within that holiday year.

If maternity overlaps the holiday year then carry over applies

It is entirely contractual(and by default) that the employer can choose when they are taken

It is just good employer practice to use up holiday at the begining/end of maternity to avoid a glut of holidays too near the end of the holiday year after maternity because the carry over issues come into play.