We all love a holiday and our Employees are no different. How clued up are you on rules around holiday pay?
1- No minimum service is required for an employee to start accruing holiday. For a full-time employee, they should receive the entitlement owed from their start date (e.g. if an employee starts in July and the holiday year runs from January to December, they should get half of the annual entitlement). For a worker with no fixed hours they should begin accruing holiday pay from their first shift (see our blog for more details on calculating holiday pay).
2- After 12 weeks temporary workers are entitled to same holiday entitled at permanent equivalent (and same working conditions and basic pay) as a result of AWR.
3 – Workers who have not taken their accrued holiday entitlement by the time they leave employment should be paid for this holiday pay (known as ‘payment in lieu’). Please note, even if they have been dismissed, they are entitled to this. In addition to this, if an employee leaves or is dismissed and has taken too much holiday pay, an employer can recover the over payment, if this is set out in the employment contract.
4- Bank holidays and public holidays can be included in a worker’s minimum entitlement (statutory minimum is 28 days, part time workers should get 28 days pro-rata, including bank holidays and public holidays).
5- You cannot add an amount in top of a worker’s usual wage (known as rolled up holiday pay). This is unlawful as workers should be encouraged to take leave from work for health and safety reasons. Rolled up holiday pay discourages workers from taking time off as they would not be paid for this period.