FOCUS HOLIDAY PAY
Unravelling the holiday pay riddle
How many days off is an employee entitled to? How much do they get paid for it? And do they still get paid it if they’re off sick? Te rules on holiday pay have changed over the past few years – so here’s a handy guide to help employers answer some of the most common queries
By Michelle Courtney SELECT Benefits Adviser
What is the recognised holiday year? The holiday year starts on the first working Monday in January and ends on the Sunday before the first working Monday the following January.
How many days holiday pay are employees entitled to per year? In 2019, the holiday entitlement is 31 days, which is split into 23 annual days and eight public days. In 2020 this will increase to 32 days, split into 24 annual days and eight public days.
When do staff start accruing holiday pay? From their very first day of employment.
How do I work out the entitlement of someone who starts employment part-way through a year?
52 CABLEtalk OCTOBER/NOVEMBER 2019
There is a simple calculation for this (see Fig 1). Firstly, count up the number of weeks they will be in employment for the rest of the current holiday year, then do the calculation in Fig 1, rounding up the answer to the nearest half day. This calculation should be used for new employees and leavers throughout the year; for leavers the number of days taken would be deducted from the answer and they would be paid the balance in their final wage.
How about part-time staff? How many days are they due? Let’s take someone who works two days a week in 2019 as an example. To work out what they’re due, take their 31 days of holiday entitlement, divide
Fig 1: Calculating holiday entitlement
Number of holiday days per year, i.e. 31 or 32, ÷ weeks in the year, ie 52, x number of weeks in employment = holiday entitlement
“Employees still accrue holiday pay as normal while they are off sick from work”
it by five and then multiply it by two. The answer is the number of days they’re allowed that year – in this case, 12. In 2020, of course, the holiday entitlement rises to 32 days.
CALCULATING HOLIDAY PAY
What should be included in holiday pay calculations? It must take into consideration all eligible earnings, including guaranteed overtime, normal non-guaranteed overtime, voluntary overtime (where consistent and regular), commission and travel payments.
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