Holiday Pay

philng

Appears our Co has changed holiday pay calculation. I am contracted 40 hours but average 51 hours with OT. Previously we accrued additional days holiday over the standard 28 days for a 40 hr contract. So an employee working 40 hrs a week would receive 28 x 8 hrs=224 hours holiday pay.

Co is now using Fourth app & is penalising staff who work an average of more than 5 days a week so for example an employee working 40 hrs a week who works 6 days a week would get less holidays than one working over 5 days as they are averaging daily rate so you would only get 5/6 of your normal weekly pay.

This surely is not right as is leading to staff getting paid less than 8 hours holiday for 1 day off?

Any advice would be appreciated.

dharm999

To my mind there are two things to consider, annual entitlement and holiday pay.  Is your annual entitlement in hours or days, that makes a difference.  Is the OT you do, regular, in which case your annual entitlement might need to change, e.g. if you regularly work 51 hours a week then your annual entitlement may well be 5.6 x 51 hours, not 5.6 times 40 hours.  Secondly if the OT isn’t regular and is on an occasional basis then your annual entitlement wouldn’t change.  What you get paid for holiday taken then has to consider your normal week and if you got paid for 6 days a week rather than 5 and your annual entitlement hadn’t changed you would end up using your entitlement up quicker, as you would get paid for 6 days.  

philng

dharm999 said:

To my mind there are two things to consider, annual entitlement and holiday pay.  Is your annual entitlement in hours or days, that makes a difference.  Is the OT you do, regular, in which case your annual entitlement might need to change, e.g. if you regularly work 51 hours a week then your annual entitlement may well be 5.6 x 51 hours, not 5.6 times 40 hours.  Secondly if the OT isn’t regular and is on an occasional basis then your annual entitlement wouldn’t change.  What you get paid for holiday taken then has to consider your normal week and if you got paid for 6 days a week rather than 5 and your annual entitlement hadn’t changed you would end up using your entitlement up quicker, as you would get paid for 6 days.  

Annual entitlement is in days which is 28 inc  bank holidays. For a 40 hr contract staff member each day holiday equated to 8 hours. If you regularly worked more than that you accrued additional days holiday pro rata.

This year staff are being penalised for spreading their hours over more than 5 days as business flexibility is required as it is looking at days worked a week to get your weekly pay.

So a standard 40 hr employee no longer receives 40 pay for a week holiday in some cases only around 34 hours.