Holiday Pay

Discussion in 'Employment & HR' started by ukman, Jul 7, 2021.

  1. ukman

    ukman UKBF Newcomer

    15 0
    Need some advice

    Took on an employee to work for me. They were on 8 hour days, on shift, company is a 24/7 office. From the 8 hours they were paid for 7.5 as 30 mins non paid break.

    A few months into working realized staff was stress and through talking find out that they were struggling financial as was asking if I could give more hours.

    After talking to others, and staff hard working, we used the working time directive which they signed offered an extra 2 hours, so now being paid extra 2 hours daily but in contact did state that all holiday pay would be paid at the 7.5 hours as the 2 hours was not part of her normal hours and was extra time.

    Fast forward to now whilst with lockdown and all, they are asking that all their holiday pay should be at 9.5 hours and not 7.5 hours.

    Are we wrong or are they right as you try to help someone and get burnt. They have been with us just over 2 years, think they knew what they were doing to wait for the two years to ask that?
     
    Posted: Jul 7, 2021 By: ukman Member since: Dec 15, 2011
    #1
  2. Frank the Insurance guy

    Frank the Insurance guy Full Member
    Contributor

    488 146
    I think holidays may be accrued based on past hours worked, so they may have some cause to ask for it. One of our HR guru's will be along to confirm.

    What are the contracted hours 7.5 or 9.5 hours?

    If 7.5, drop them back to those hours moving forward, so they then don't get the extra holidays in future and also lose out on the extra 2 hours!
     
    Posted: Jul 7, 2021 By: Frank the Insurance guy Member since: Oct 28, 2020
    #2
  3. WaveJumper

    WaveJumper Contributor

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    Posted: Jul 7, 2021 By: WaveJumper Member since: Aug 26, 2013
    #3
  4. kulture

    kulture Moderator
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    Subject to the expert advice, I always thought that the amount paid for a holiday would be calculated using the average wage for the preceding 12 weeks. So if they worked 9.5 hours a day on average, then you pay 9.5 hours for the day holiday.
     
    Posted: Jul 7, 2021 By: kulture Member since: Aug 11, 2007
    #4
  5. UKSBD

    UKSBD Moderator
    Verified Business ✔️
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    Pretty sure that changed, either this year or year before, think it is average over the year now.
    Hopefully @Newchodge will confirm or not.

    Edit: It changed on 6 April 2020
    source: https://www.gov.uk/government/publications/calculating-holiday-pay-for-workers-without-fixed-hours-or-pay/calculating-holiday-pay-for-workers-without-fixed-hours-or-pay--2 It's called - The holiday pay reference period
     
    Posted: Jul 7, 2021 By: UKSBD Member since: Dec 30, 2005
    #5
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  6. Newchodge

    Newchodge Contributor

    15,871 4,466
    The holiday entitlement is based on the contracted time, so 7.5 hours. The holiday pay is based on the average earnings over the previous 52 worked weeks, so ignoring weeks furloughed, or on the actual rate of pay if higher.
     
    Posted: Jul 8, 2021 By: Newchodge Member since: Nov 8, 2012
    #6
  7. IanSuth

    IanSuth Contributor

    438 127
    This

    Basically, the staff are entitled to X days based on their contract - how you calculate what a day is is based on the average number of hours they usually work or the contract whichever is higher
     
    Posted: Jul 8, 2021 By: IanSuth Member since: Apr 1, 2021
    #7