Holiday Pay

There are few of us who would choose to work for free.

Even those of us who really love our jobs still expect to be remunerated for them at the end of the month.

And yet millions of us are failing to claim an essential part of that pay every year - either through ignorance or confusion.

That pay is holiday pay.

New figures show that in the UK 1.8 million people are not receiving the holiday pay they are entitled to - meaning they are missing out on an incredible £1.8 billion each year.

Research for the Government shows that many workers simply do not understand their holiday pay rights, with half of those surveyed incorrectly believing that zero-hour contracted workers are not entitled to holiday pay.

If you are among those left baffled by holiday pay, here are some important things to remember:

  • Anyone classed as a worker is entitled to 5.6 week’s paid holiday a year from their first day of employment up to a maximum of 28 days. To work out your holiday entitlement just multiply the number of days you work each week by 5.6.

  • Bank Holidays – there are eight in the UK - can be legally included in your statutory holiday entitlement.

  • The leave year may start on the date set in your contract, or on the anniversary of the start of your employment.

  • A part-time worker is entitled to paid leave on a pro-rata basis. So a person working a three-day week would be entitled 16.8 days' annual leave. (3x5.6)

  • An employer can only make a payment in lieu for holiday pay on termination of the employment.

  • If you work different hours every week your holiday pay is calculated on your average pay for the 12 weeks before your holiday.

Of course, if you are self-employed you are not entitled to paid leave – an area some companies take advantage of when classifying some employees. If you think you have been wrongly classified, talk to us and we’ll help you put things right.

And if you are a casual or agency worker you might be offered extra pay on top of your hourly rate in something called rolled-up holiday pay. This must be shown separately on your payslip so that you can check its accuracy.

If you think you have lost out on holiday pay, raise the matter informally with your employer. If that doesn’t solve things, you can raise a grievance – and call in the sort of expert help we can provide to make sure you get just what you are entitled to.

That way, the next time you go on holiday you can really relax.

To book a free consultation over this or any other employment issue, click on the button on screen now.

If you would like to discuss these issues, or other HR concerns then please

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