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Discussion in 'Employment & HR' started by tagman 12, Apr 2, 2018.
Do I have to pay him sick pay and holiday pay if they are on the BOOKS?
Yes you pay employees sick pay and holiday pay. 28 days holiday pay a year is the minimum but you can pay for more.
Plus pension contribution if relevant.
If they are earning more than £116 per week and are not on the books, you would be committing a criminal offence.
You can limit sick pay in the contract - by a cash amount, number of days or percentage of salary.
If you limit sick leave in your employment contracts, you can still pay it anyway on a discretionary basis. You have it in your backpocket if someone takes the mick.
On a casual contract (with no guaranteed hours), you don't have to pay sick leave.
Employees may be eligible for SSP, and I'm sure there's an expert on UKBF who can explain your SSP obligations better than I can.
In terms of a casual contract, with big seasonal variations, how is it best to handle holiday pay?
I would have thought it easiest administratively to just add a calculated amount of cash each month as Holiday Pay, but is that legal?
I think you'd handle it the same way you would with someone who worked on variable hours.
I think it is 12% of hours worked is banked as holiday - up to the 28 day max.
If someone works 100 hours, they should get 12 hours holiday.
If the working day is 9-5 (7 hours), that would be 1.5 days holiday (depends on whether they're still working and your company's rounding policy).
It isn't legal to just give people the cash amount of holiday pay they are entitled to . They are entitled to paid time off.
The easiest way to calculate the amount of time they are entitled to is to take 12.07% of wages or time worked. So if someone works 260 hours they are entitled to 31.4 hours paid holiday. We used to advise doing the same for caculating the amount of pay, but there was a tribunal decision recently that you MUST calculate a week's (or an hour's) holiday pay based on the average earnt over the previous 12 weeks in which they got paid. Subject to a minimum of their contractual week's pay, if they have such a thing.