Holiday pay

Chatting to a driver he was adamant that holiday pay should be an average of your last quarters take home pay. Anyone ever heard of this?

i thought holiday pay could be as much or as little as your employer wishes to pay you :confused:

Can’t remember what it was but, I read an article somewhere that COULD be interpreted to mean this.
Tried it with my then boss but no joy.
I had no joy with the union over it either.

not certain but i believe it is now law that an employer must pay a minimum of so many days per year and that holiday pay for those days is an average of your previous 13 weeks wages, to stop people who rely on bonus etc as the bulk of their wages being ripped off by only being paid based on basic pay, as i say i’m not 100% certain but the last two or three employers i’ve worked for, including agencies have worked it out that way.

Mr B:
Chatting to a driver he was adamant that holiday pay should be an average of your last quarters take home pay. Anyone ever heard of this?

If he had said COULD BE then he would have been correct as it all depends on the wording in the contract of employment

There are many ways in which the employer and employee can agree on a way to calculate holiday pay
The important thing is that, once agreed, they get put into writing (contract)

Statutory holiday pay is quite simply equivalent to what you would have earned as your basic wage if you were at work.

I.e. If your basic wage is £350 before tax for 40 hours, and you take a week of leave, then you must be paid £350 before tax for that week (assuming your contract requires you to work a minumum of 40 hours). If your contract is only for 20 hours but you normally work another 20 hours as overtime, then your holiday pay will only be for 20 hours as that is all you are contractually obliged to work.

The 12 week average only comes into play when an employee’s wages are determined by the amount of work done (i.e. piece work), rather than an hourly rate.

Holiday pay does not cover night out allowances, bonuses, overtime etc.

The basics of holiday rights
There is a minimum right to paid holiday, but your employer may offer more than this. The main things you should know about holiday rights are that:

you are entitled to a minimum of 5.6 weeks paid annual leave (28 days for someone working five days a week)
part-time workers are entitled to the same level of holiday pro rata (so 5.6 times your usual working week, eg 22.4 days for someone working four days a week)

you start building up holiday as soon as you start work
your employer can control when you take your holiday
you get paid your normal pay for your holiday when you finish a job, you get paid for any holiday you have not taken
bank and public holidays can be included in your minimum entitlement
you continue to be entitled to your holiday leave throughout your ordinary and additional maternity leave and paternity and adoption leave.

In order to qualify for the right to annual leave you need to be classed as a worker. If you are self-employed, you have no statutory right to paid annual leave.

direct.gov.uk/en/Employment/ … G_10029788

Thanks for that it didn’t sound right and it wasn’t.

What happens if you dont have a basic wage, i.e you just get paid an hourly rate for the hours you work + overtime■■?

With my agency we just came to an agreement that I would get holiday pay pro-rata to the average hours I’d worked over the year - ie I generally do 2 nights a week (averages about 20 hours) so he gives me 40% holiday pay, ie 8 days which I just claim for over the final month of the holiday year. We came to the arrangement when the rules were brought in a few years ago, but never bothered going into detail as to whether it was as the law required. We’re both happy enough with it so that’s the way it’s stayed.

so how does this work if,your employed paye on zero hours contract?

Car Delivery was always Average pay for holidays.

Mr B:
Chatting to a driver…[SNIP]

Do you see where you went wrong? :wink: :stuck_out_tongue: :stuck_out_tongue:

Coffeeholic:

Mr B:
Chatting to a driver…[SNIP]

Do you see where you went wrong? :wink: :stuck_out_tongue: :stuck_out_tongue:

well his mate told him so it had to be true lol

On most jobs I have been on paid 50 hrs. but on present job paid an average of earnings from the previous 12 wks,Don`t suppose this is law I would think it varies from employer to employer

this might help
"Anyone who has been with their employer for at least three months is entitled to four weeks’ paid leave a year.

After union campaigning, the government agreed that it was unfair that mean employers counted bank holidays against the European minimum of four weeks paid holiday.

But they have closed this loophole by increasing your minimum legal holiday entitlement. From October 1 2007 a full time worker gained an extra four days holiday, and in April 2009 a full timer will gain a further four days.

If you work part time you should get four times what you work on average each week. For example if you work three days a week then you should get twelve days’ holiday.

If you work regular hours for a regular week’s pay, then you should be paid the same for a week’s holiday.

If your weekly pay varies then you should get the average you earned over the last 12 weeks. This includes shift pay, commission and bonuses. Overtime is also included if you have to do it every week and it is written into your contract.

And if your employment ends, you should be paid for the leave you are due and have not taken"

taken from an employees legal advice site, seems it may be law after all? BUT i would guess that if you’ve signed a contract of employment that states you’ll get less than the above, you’ve probably shot yourself in the foot.

We get paid 55 hours per week for holiday pay. I’m on a days holiday tomorrow so will get paid 11 hours. £112.50 for staying at home.

If your weekly pay varies then you should get the average you earned over the last 12 weeks. This includes shift pay, commission and bonuses. Overtime is also included if you have to do it every week and it is written into your contract

This is the piece I had read.

It was explained to me that overtime “being written into your contract” is meant to refer to compulsory fixed overtime and not just the normal “may be required to do overtime as required” that is generally written in to contracts.