holiday pay

[twibs]

1. Should any overtime be included in calculating holiday pay,or are there requisites.

2. Bit more complicated. Employee had to work a year in advance to gain holiday pay. So employee joined in say yr 2000...no holidays that year.. Yr 2001 got holidays from time accrued in 2000. Company realised in 2007 this was incorrect.
Accrued holiday valued at £X and company wide agreement made that once employee left the business the payment would be made. However company this month has decided to pay this amount after years of refusing. Should this value be subject to interest ?

[vulture1]

A year without holidays is that right? In our company if you are part time working 1 day a week but you work 3 days overtime every week then when you go on holiday you have 1 day holidays ie your contract but get paid 4 days worth for it.

[plasticpig]

The employer was right to refuse to pay the holiday as it's against the law to pay an employee in lieu of statutory holiday unless the employee is leaving employment.

[Countdown]

plasticpig said:

The employer was right to refuse to pay the holiday as it's against the law to pay an employee in lieu of statutory holiday unless the employee is leaving employment.

Not saying you're wrong but could you send me the link to this as it's been an issue of contention with HR.

Also - is there anything to stop Joe Sixpack booking leave next week, and then coming in to do a week's overtime? His records will show he's taken his statutory leave, and he'll also be paid for the extra hours that he worked.

[Nickbrapp]

Overtime should be taken into account

At my company where people’s overtime and commissions vary, it is all added up across the year then deviced by 365 to give a average amount then paid x25/30 depending how many says holiday they get and then paid in January as a lump sum

[plasticpig]

Countdown said:

Not saying you're wrong but could you send me the link to this as it's been an issue of contention with HR.

Also - is there anything to stop Joe Sixpack booking leave next week, and then coming in to do a week's overtime? His records will show he's taken his statutory leave, and he'll also be paid for the extra hours that he worked.

https://www.legislation.gov.uk/uksi/1998/1833/regulation/13

Paragraph 9 is the relevant bit.

Legislation said:

Leave to which a worker is entitled under this regulation may be taken in instalments, but—

(a)[F7subject to the exception in paragraphs (10) and (11),] it may only be taken in the leave year in respect of which it is due, and

(b)it may not be replaced by a payment in lieu except where the worker’s employment is terminated.

[Countdown]

Thanks PP.

Still wondering what would happen if the Employee booked leave and then worked overtime?

The issue is that we have lots of Employees who cant take leave due to workload (and don't want to) but HR are insisting they have to. My suggestion of them booking leave and being paid to do overtime was seen to be too risky to try out.

[Lim]

I think you have to take the holiday. It’s akin to not being legally allowed to drive more than x hours in a work day.

I used to pay staff who didn’t want to take annual leave but got told off for it. It’s not optional.

[Countdown]

plasticpig said:

https://www.legislation.gov.uk/uksi/1998/1833/regu...

Paragraph 9 is the relevant bit.

Legislation said:

Leave to which a worker is entitled under this regulation may be taken in instalments, but—

(a)[F7subject to the exception in paragraphs (10) and (11),] it may only be taken in the leave year in respect of which it is due, and

(b)it may not be replaced by a payment in lieu except where the worker’s employment is terminated.

Just been advised by the HR Director that Employees can carry forward unlimited leave this year, even if it means they've taken less than the statutory minimum number of annual leave days. Apparently the normal legislation has been suspended due to the pandemic