Holiday pay

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Can any one help as brain dead at mo :shock:

An employee of my client was working 27 hours per week. His hours were reduced to 18 hours per week 4 weeks ago.

Do I calculate his holiday pay entitlement based on previous hours worked or on his new hours?? The employee gets 4 weeks holiday per year.

Any suggestions gratefully received :D

Michelle

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    What does his contract of employment say? :wink:

    If he doesn't have one I would calculate it on the reduced amount of hours.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    Hi

    Going from previous experience, I know that someone who works irregular hours has their holiday entitlement based on the average hours worked in the preceding twelve weeks - therefore entitlement changes as there hours do.

    Because of this it may not be as simple as just basing it on one or the other. It may be a case of pro-rata, i.e. any holiday accrued to date is based on the higher hours, any accrued after the change is based on the lower. What ever they hours they are entitled to the equivalent of four times their working week

    Try the ACAS website (www.acas.co.uk) if the information isn’t there you can always phone them. When an ex employer tried to pull a fast one with me I got as far a filling in the tribunal form before they caved, so best check first.

    Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay
    pro-rata

    Thats the word I was looking for :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    Thanks for that, I had a feeling it wouldn't be straight forward.

    I want to get this right as the employee does try it on and has been known for pulling a fast one in the past. So if I can back up what I do all the better :D

    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    Correct. It's the last 12 weeks' average.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    I thought it was 8 weeks average?! :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    I thought it was 8 weeks, too, until I checked it on the DTI site at http://www.dti.gov.uk/employment/employment-legislation/employment-guidance/page28979.html#paid_annual, where it says,
    For workers who work irregular hours (hours and pay vary)

    If you do not work regular hours - you may be an agency worker who works different hours every week or a sales representative who gets paid commission only – you should average your pay out by adding up all your pay for the past 12 weeks and dividing it by 12. If you did not earn anything during one week, add in the pay from the week before the 12th week to bring the total up to 12.

    The 8 weeks' average applies to SSP, SMP, SPP and SAP.

    Hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    Thanks for all your replies, I haven't had an internet connection over the weekend so couldn't reply until now.
    Yes it is the average over the last 12 weeks - I checked with ACAS as Neil suggested.

    Thanks once again
    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Holiday pay

    Oh yes, I knew 8 weeks came in somewhere.

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