Claiming holiday pay
Author
Discussion

21TonyK

Original Poster:

13,284 posts

238 months

Wednesday 24th December 2014
quotequote all
Have an employee (part time) who has worked out she is owed 41 hours holiday pay. Not questioning this as she keeps meticulous records of her hours etc

We've always said our holiday year was very flexible. Good staff all starting at random times of the year but for some December has been the cut off and we normally close the business for 10 days over Xmas so everyone gets a good break.

However, she is now claiming 85 hours worked plus 41 hours holiday pay for the month. Knowing full well she wont be working again until 9 Jan.

Her contract is flexible hours and she has recently chosen to reduce them from 120+ to 70-80 as she has another job as well.

Question is, can she simply claim these 41 hours on demand? I think not.

?

Muntu

7,683 posts

228 months

Wednesday 24th December 2014
quotequote all
What have you told her in her contract?

Sounds like she should be working in your HR Dept biggrin

Grandfondo

12,241 posts

235 months

Wednesday 24th December 2014
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Is this 41 hours for the 10 days you are closing?

21TonyK

Original Poster:

13,284 posts

238 months

Wednesday 24th December 2014
quotequote all
I strongly suspect she is going to reduce her hours again in the new year. Maybe even leave.

sploosh

822 posts

237 months

Wednesday 24th December 2014
quotequote all
Bit weird paying holiday pay. Would usually take days off surely? If going into a new holiday year most employers allow a carry forward, say 3 days with the rest lost. If she leaves then the balance of holidays is considered in notice period. Unusual to be paid I would say.

If paying for holidays rather than time off then the usual way is to calculate this within the hourly rate. I do this with folk on zero hours contracts. For every hour they work they get paid an extra percentage which is equivalent to the hols a fte would get. You don't get surprises that way.

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
Is it now illegal to pay for the statutory holidays that should have been taken?


2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
..and as already said, what does COE say on the matter?

21TonyK

Original Poster:

13,284 posts

238 months

Wednesday 24th December 2014
quotequote all
2 sMoKiN bArReLs said:
..and as already said, what does COE say on the matter?
Casual waiting staff. Started doing a few hours a week, grew to near full-time, now dropping off again. No formal contract.

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
21TonyK said:
2 sMoKiN bArReLs said:
..and as already said, what does COE say on the matter?
Casual waiting staff. Started doing a few hours a week, grew to near full-time, now dropping off again. No formal contract.
Custom & practice with other staff? Is the slate wiped clean (no pun intended biggrin) if they don't take the holidays?

I guess at the end of the day you'll do what you feel is right.

oldcynic

2,166 posts

190 months

Wednesday 24th December 2014
quotequote all
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
oldcynic said:
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.
T'ain't that simple though is it. Holidays should be taken, not paid

Sowler

223 posts

178 months

Wednesday 24th December 2014
quotequote all
Has she had the option to take her holidays? Or have you been too busy so didn't allow it? If the latter is the case then you need to pay her any unused holiday.

I suggest you speak to ACAS or the CAB with the facts. They will advise you the best on the matter.

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
Sowler said:
Has she had the option to take her holidays? Or have you been too busy so didn't allow it? If the latter is the case then you need to pay her any unused holiday.
Are you sure?

The government says:

Getting paid instead of taking holidays
The only time someone can get paid in place of taking statutory leave (known as ‘payment in lieu’) is when they leave their job.

mph1977

12,467 posts

197 months

Wednesday 24th December 2014
quotequote all
2 sMoKiN bArReLs said:
Sowler said:
Has she had the option to take her holidays? Or have you been too busy so didn't allow it? If the latter is the case then you need to pay her any unused holiday.
Are you sure?

The government says:

Getting paid instead of taking holidays
The only time someone can get paid in place of taking statutory leave (known as ‘payment in lieu’) is when they leave their job.
although custom and practice seems to allow casuals to be paid out at the end of the financial year as well . ( but a lot of that came around becasue when mandatory holiday pay was first introduced it was often paid as a supplement / variable element per hour worked rather than saved up and claimed )

Countdown

49,282 posts

225 months

Wednesday 24th December 2014
quotequote all
21TonyK said:
Have an employee (part time) who has worked out she is owed 41 hours holiday pay. Not questioning this as she keeps meticulous records of her hours etc

We've always said our holiday year was very flexible. Good staff all starting at random times of the year but for some December has been the cut off and we normally close the business for 10 days over Xmas so everyone gets a good break.

However, she is now claiming 85 hours worked plus 41 hours holiday pay for the month. Knowing full well she wont be working again until 9 Jan.

Her contract is flexible hours and she has recently chosen to reduce them from 120+ to 70-80 as she has another job as well.

Question is, can she simply claim these 41 hours on demand? I think not.

?
You can either pay her the cash OR give her the time off. If you give her the time off you're going to have to pay somebody else in cash to cover her hours so, as far as I can see, you are no better off financially.

The xmas closure period - is that paid leave / unpaid leave? Does it come out of their holiday allowance?

Countdown

49,282 posts

225 months

Wednesday 24th December 2014
quotequote all
2 sMoKiN bArReLs said:
oldcynic said:
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.
T'ain't that simple though is it. Holidays should be taken, not paid
My understanding is that it's acceptable/legal to be paid cash for untaken leave. That's based on advice from a HR Dept at a previous employer.

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
Countdown said:
2 sMoKiN bArReLs said:
oldcynic said:
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.
T'ain't that simple though is it. Holidays should be taken, not paid
My understanding is that it's acceptable/legal to be paid cash for untaken leave. That's based on advice from a HR Dept at a previous employer.
I think that's wrong these days.

mph1977

12,467 posts

197 months

Wednesday 24th December 2014
quotequote all
2 sMoKiN bArReLs said:
Countdown said:
2 sMoKiN bArReLs said:
oldcynic said:
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.
T'ain't that simple though is it. Holidays should be taken, not paid
My understanding is that it's acceptable/legal to be paid cash for untaken leave. That's based on advice from a HR Dept at a previous employer.
I think that's wrong these days.
nothing to stop people working none premium rate overtime / bank hours while on leave ... which has the same net effect

2 sMoKiN bArReLs

32,000 posts

264 months

Wednesday 24th December 2014
quotequote all
mph1977 said:
2 sMoKiN bArReLs said:
Countdown said:
2 sMoKiN bArReLs said:
oldcynic said:
I'm guessing she may have gone here https://www.gov.uk/calculate-your-holiday-entitlem... which took me about 3.5 seconds of googling to find.

Assuming you've got records of how many hours you've paid her this year and the result matches with hers you're probably best off paying the money, but bracing yourself for other staff finding the same link.
T'ain't that simple though is it. Holidays should be taken, not paid
My understanding is that it's acceptable/legal to be paid cash for untaken leave. That's based on advice from a HR Dept at a previous employer.
I think that's wrong these days.
nothing to stop people working none premium rate overtime / bank hours while on leave ... which has the same net effect
Cool. As long as the legal minimum is covered, which in the OP's situation looks not to be so thumbup

Countdown

49,282 posts

225 months

Thursday 25th December 2014
quotequote all
2 sMoKiN bArReLs said:
I think that's wrong these days.
Some stuff here which might clarify smile

http://www.weightmans.com/pdf/in%20order%20to%20re...