Zero hour contract and paid holiday

Discussion in 'Employment & HR' started by antoine82, Apr 29, 2013.

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  1. antoine82

    antoine82 UKBF Contributor

    173 29

    I'm hiring staff with a zero hour contract. Is it compulsory to add a certain amount of money (something like +12.5% if I remember well) for their holiday or can we state that holidays are already included in the wage?

    Thank you very much for your help!
    Posted: Apr 29, 2013 By: antoine82 Member since: Oct 26, 2010
  2. StevensOnln1

    StevensOnln1 UKBF Legend

    3,468 752
    If you include holiday pay in the money they receive each pay day, it must still meet national minimum wage when the holiday pay is removed.
    Posted: Apr 29, 2013 By: StevensOnln1 Member since: Dec 10, 2011
  3. Newchodge

    Newchodge UKBF Legend

    16,065 4,535
    Technically you can't include holiday pay in normal salary, but the case law is a bit messed up.

    What you MUST do is specify on the payslip x is wages and y is holiday pay. x must be at least minimum wage and y must be at least the equivalent of 5.6 weeks holiday per year.
    Posted: Apr 29, 2013 By: Newchodge Member since: Nov 8, 2012
  4. Crocus

    Crocus UKBF Newcomer

    62 5
    We have some staff on zero hours contracts as they are finishing degrees and so their availability is irregular.

    What we do is each month:
    Pay their salary for hours worked,
    Do a calculation for how much AL they have accrued based on hours worked on the 5.6 weeks equivalent, which is 12.07% hours worked.

    We keep the employee informed of the running total of hours of AL accrued and they ask for it to be paid every so often.

    When we pay it we write as a separate line on their payslip so it is clear this money is for AL accrued not hours worked.
    Posted: May 1, 2013 By: Crocus Member since: Sep 20, 2010
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