First employee need assistance with holiday and sick pay.

[samz]

Hi

I'm employing somebody for 16 hours per week to cover me during maternity leave. I am a one man band LTD company and need to keep my costs down.

Just putting together a temporary contract and need to work out what the holiday entitlement will be. Can anyone advise?

Any absences will be unpaid, so assume I can say that SSP will cover them if they qualify.

Is there anything else that I might need to be mindful of?

Thanks

 

[Dawn Lane]

I would question whether the person needs to be employed. Could they actually cover your maternity leave on a self employed basis and invoice you weekly/monthly for the hours they work?

That way you won't need to worry about PAYE/NI, holiday or sick entitlement.

Dawn

 

[samz]

Thanks. I think I would rather not go that route. As a very small business I wouldn't want to leave myself open to any investigation by HMRC, I just cannot risk it.

I'm guessing that at 16 hours a week, the costs are fairly small to me. As a bare minimum I will have to give a written statement to my employee, just unsure on the holiday entitlement.

Thanks

 

[payrolloxford]

Your employee will be entitled to the current statutory minimum number of paid holiday days per year which is 28 days for every year worked. If the person will be working 5 days per week or more then he/she will accrue 2.333 days holiday for each month worked (28 divided by 12) If they will be working ad hoc days/hours then it may be easier to calculate the holiday pay due as a percentage of earnings to date. The percentage is 12.07%. For example if, their earnings amount to £1000, they would have accrued £120.7 worth of holiday pay.
Regards
Linda

 

[Richard_Carey]

The businesslink website covers many of these issues, and also has a holiday entitlement calculator, which you may find useful.

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.lc=en&topicId=1073858787

 

[Dawn Lane]

Thanks. I think I would rather not go that route. As a very small business I wouldn't want to leave myself open to any investigation by HMRC, I just cannot risk it.

Thanks

Not sure I understand this quote - as long as the self employed contract is written correctly there shouldn't be any cause to worry from HMRC.

I work on a self employed basis with a number of small businesses, sole traders, ltd companies, and public sector industries, ranging from 5hrs to 30 hrs per month and have done so for the past 5 years with no investigations from HMRC. You would just need to ensure the contract ageement is tight.

Dawn