holiday pay

Am hoping somebody can advise me on this matter.
I have just started doing the accounts at a local charity. The person doing the payroll before me set up the holiday pay in what seems like a strange way to me.
Basically employees get their holiday twice a year, june and dec. If they take holidays before the month that holiday pay is paid in then it is effectively unpaid. It makes sense that some holiday pay is kept for the xmas period as the place is closed for a month.
This doesnt feel right to me as I have always just paid holidays at the time of taking them.
Any advice much appreciated.


  • kelsmick
    kelsmick AberdeenRegistered Posts: 89
    That seems a very strange set up. I've not come accross that before and it seems very strange and more likely to cause extra work processing the payroll in those months. Have you spoke to the manager and said that it would be a lot easier and simpler to do it as the holidays are taken?
  • Neillaw
    Neillaw New Member RossendaleMAAT, AAT Licensed Accountant Posts: 283 Regular contributor ⭐ 😼 ⭐
    They seem to have two compulsory shut downs per year, it seems to me like they want to make sure that employee has sufficient funds available for these periods. I agree that this does seem to increase work as you would have to role the payroll on for longer than the usual two weeks.
    If this has been the case for a number of years the staff would now be acustom to it.
  • quattrofish
    quattrofish Registered Posts: 2
    The business closes down for one period only , over xmas and new year. The holiday pay in June is paid if holidays have been taken or not. Any holidays then between June and December are then unpaid. I believe that this is the first full year that the staff have been employed. I am concerned about the legality of paying holiday pay when holidays have not been taken. I have spoken to the treasurer and have voiced my concerns but I am still on probation so am reluctant to rock the boat too much. There are now 3 more paid staff so if they insist on paying the holiday pay this way there will be a very large payment to be made in June rather than spreading the cost across the year.
    Hope this makes sense,
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