Making sure you get holiday pay right is key not just for sticking to the rules, but also for keeping everyone at work happy and motivated. Here at Jamieson Law, we’re here to help make that happen, plain and simple.
What you need to know
Here’s the scoop on holiday pay in the UK. If you work full-time, you’re entitled to at least 28 days of paid leave each year, and yes, that includes bank holidays. For part-time workers, it’s all about fairness, so your holiday pay is worked out based on the hours you put in.
Wondering how to work it all out? We’ve got you covered:
- Fixed hours and salary: For those with consistent hours and salaries, holiday pay is simply their regular weekly wage.
- Shift work: Calculate holiday pay for shift workers by averaging the weekly hours worked over the last 52 weeks, then multiplying by their average hourly rate.
- Variable hours and pay: Employees with fluctuating hours or pay, such as those on zero-hours contracts, should have their pay based on the average of the last 52 weeks’ pay, incorporating regular bonuses and overtime for a true reflection of earnings.
Inclusive of all types of overtime
- Guaranteed and non-guaranteed overtime: Both should be included in the holiday pay calculations, reflecting recent legal precedents.
- Voluntary overtime: While not mandatory, including voluntary overtime can be a beneficial practice to mirror total earnings more accurately.
Special considerations
- Less than 52 weeks’ employment: For newer employees, average their earnings over the actual weeks worked instead of 52.
- Multiple pay rates: For employees earning variable wages across different tasks, combine all earnings over the past year, divide by 52, and use this average for pay calculations.
Policy on carrying over holiday
Typically, holiday must be taken in the year it is accrued unless specific circumstances like illness or maternity leave apply. It’s important to clearly communicate your company’s policy on holiday carry-over to avoid misunderstandings.
At Jamieson Law, we understand that these calculations can seem daunting. We’re here to provide expert guidance to ensure that you handle holiday pay with confidence, keeping your operations smooth and compliant. If you’re looking to refine your approach to holiday pay, reach out to us today—let’s make sure your practices are as robust and fair as possible.
