Anyone know how to calculate agency (zero hours ) PAYE holiday pay ? Thanks in advance.
First Google Search throws this up
As an agency worker, your hours and pay may vary considerably over time. … If this is the case, your earnings over the most recent 12-week period are divided by the hours worked over the same 12 weeks to give you an average hourly rate and determine your holiday pay.
citizenkane:
First Google Search throws this up
As an agency worker, your hours and pay may vary considerably over time. … If this is the case, your earnings over the most recent 12-week period are divided by the hours worked over the same 12 weeks to give you an average hourly rate and determine your holiday pay.
Out of date advice as of 6th April 2020 thanks to changes Boris Johnson made to address the injustice for seasonal workers.
Your holiday pay is now calculated as an average of the previous 12 months and includes overtime,shift allowances, bonuses etc - basically everything that’s taxable pay, but not things like night out money.
Conor:
citizenkane:
First Google Search throws this up
As an agency worker, your hours and pay may vary considerably over time. … If this is the case, your earnings over the most recent 12-week period are divided by the hours worked over the same 12 weeks to give you an average hourly rate and determine your holiday pay.Out of date advice as of 6th April 2020 thanks to changes Boris Johnson made to address the injustice for seasonal workers.
Your holiday pay is now calculated as an average of the previous 12 months and includes overtime,shift allowances, bonuses etc - basically everything that’s taxable pay, but not things like night out money.
Thanks, so if I work for 12 months I should get 1.7 days / month (ie 20 days/year) and 8 bank holidays ?, total 28 days, of my average taxable pay ?
D12:
Thanks, so if I work for 12 months I should get 1.7 days / month (ie 20 days/year) and 8 bank holidays ?, total 28 days, of my average taxable pay ?
I suppose bear in mind that the 28 days is based on a five day working week. The entitlement is 5.6 weeks. If you do 4 days, the entitlement is less. If you do more than 5, you don’t get more holidays, but what you do get paid will be inflated by your average pay being more due to the additional days.
Nope again wrong.
You’re entitled to 28 days annual leave. You don’t get less than that just because you only do say 4 days a week. All that happens in that case when you work a 4 day week and you take a full 5 day week’s annual leave is you’re paid 20% less per day than you’d normally earn in a day so you still get 28 actual days off. Ignore the number of days you normally work, it’s all about how much money you earn.
If you earn £26,000 over the previous 12 months whether you do 3,4,5 or 6 days in a week you’re entitled to 28 days @ £100.
I’m agency paye , I get roughly £100 pw holiday pay , paid weekly when I’m at work ( every week ) , then I don’t get paid holiday pay when I’m on hol , so basically you have to put the £100 pw in a envelope under bed which covers you for hol pay when off .
Think someone said they deduct 12% of your weekly wage for hol pay
Hi Conor
No I’m right.
I didnt think the 8 days bank holidays counted in the average earning bracket?
I know some firms do calculate like that because its easier administration but as far as I always thought they were excluded from the average working. Actually is there a right to be paid for them at all legally?
dozy:
I’m agency paye
Are you sure …You think you’re agency PAYE but your paid via the Stobart pseudo payroll company
Noremac:
Hi Conor
No I’m right.
Are you?
Advanced Notice of Holiday Pay Changes from April 2020
From 6th April 2020, the UK government will be changing the holiday pay reference period that applies for calculating an average week’s pay where a worker has variable remuneration. This can either be because there are normal working hours, but the remuneration varies due to:
The amount of work completed.
The time the work is completed
The worker does not have normal working hours.This will be happening as part of the measures proposed to improve transparency between employers and individuals in the labour market.
With workers that have been with their employer for at least 52 weeks, the reference period will be increased from 12 weeks to 52 weeks, whereas workers who have been with their employer for less than 52 weeks will have a reference period of the number of weeks for which they have been employed with their current employer.
See also:
home.kpmg/uk/en/home/insights/2 … y-pay.html
accountingweb.co.uk/busines … april-2020
activpayroll.com/news-artic … es-in-2020
There’s dozens more on Google…
toonsy:
I didnt think the 8 days bank holidays counted in the average earning bracket?I know some firms do calculate like that because its easier administration but as far as I always thought they were excluded from the average working. Actually is there a right to be paid for them at all legally?
There is no legal right to paid bank holidays. They’re not excluded from the average working. By law they have to be calculated just the same as every other day’s holiday you take.
Hi Conor
It is 5.6 weeks calculated pro-rata according to the number of days you do per week. Your focus seems to be whether the reference period is 12 or 52 weeks. I haven’t actually commented on that at all, it was someone else that mentioned the historical method of calculating the pay. The method of calculating how many days an agency worker can take hasn’t actually changed.
I see it is the smoking gun links approach from you again, which is a recurring theme. Maybe read the posts properly and make sure you are replying to the correct person before going on your google search?
A part-time worker working 3 days per week does not get 28 days, which would be absurd. Hope this clears things up for you.
One of your links does mention the pro-rata 5.6 weeks BTW.
Whatever. You’re convinced you’re right even though the law states 28 days paid at an average of the last 12 months. If you can’t understand how you can take 28 days holiday even when you don’t work 5 days a week then there’s no helping you.
On the contract I’m on we’re entitled to 33 days. I don’t work all year round 5 days a week, I’m still entitled to 33 days leave. I’ve already taken 28 days with 5 days left. The drivers who only do 3 days a week still get 33 days holiday, they just get paid roughly £100 a day when they take a day’s holiday, not the £150-£160 they normally earn in a shift. Because of how many days a week I average in a year I get paid £120 a day holiday pay at the moment even though I’m earning between £130 and £180 a shift because in the last 12 months I’ve earned around £30k.
But whatever. You keep letting your bosses walk all over you and screw you out of holiday pay, ain’t my problem.
Hi Conor
Well, its kinda because you are posting your waffle on a public board that I reply so at least there is an attempt at having the correct information posted on the forums (which other people may arrive at through a google search or the search facility for members).
The entitlement is to 5.6 weeks. 28 days is the maximum (statutory), due for people working 5 days or more per week. It isn’t as if I haven’t referred to government information before posting this.
Hi Conor. I think you’ll find the 28 days is dependent on how many days you work. I k ow our 4 on 4 off are only entitled to 20 days. I also suffer as I take unpaid days off as I’m a big Rugby fan and when I attend Internationals I like to extend my week end I can lose myself a days paid holiday if I’m not available for work all my contracted days.
Conor:
Whatever. You’re convinced you’re right even though the law states 28 days paid at an average of the last 12 months. If you can’t understand how you can take 28 days holiday even when you don’t work 5 days a week then there’s no helping you.On the contract I’m on we’re entitled to 33 days. I don’t work all year round 5 days a week, I’m still entitled to 33 days leave. I’ve already taken 28 days with 5 days left. The drivers who only do 3 days a week still get 33 days holiday, they just get paid roughly £100 a day when they take a day’s holiday, not the £150-£160 they normally earn in a shift. Because of how many days a week I average in a year I get paid £120 a day holiday pay at the moment even though I’m earning between £130 and £180 a shift because in the last 12 months I’ve earned around £30k.
But whatever. You keep letting your bosses walk all over you and screw you out of holiday pay, ain’t my problem.
I’d suggest the situation you describe is particular to your firm.
Cases have already shown that it is not permissible to pay less pay on a holiday day than on a normal working day - at least not for the 28 days holiday which a 5-day-a-week worker is entitled to as minimum, although an employer is entirely free to pay whatever they like for any additional days beyond the 28 statutory days.
Of course, if it financially balances over the year, and crucially, nobody complains, then your firm can do as it pleases to calculate holiday. Indeed, 33 days is more than the legal minimum anyway.
There are a variety of ways in which holiday can be calculated which is not compliant with the law, but which overall is financially equal to (or better than) a lawful calculation.
An example could be your firm only allowing a single day’s holiday per year (i.e. working you all 52 weeks of the year except Christmas Day), but then paying you 33 days’ worth of pay on that single day - certainly financially better than the 28 days minimum, but not lawful.
Another example is rolled-up holiday pay, or pay in lieu of holiday (during the currency of the employment I mean, not at the end of it), where the money is paid but no actual days are allowed for holiday. It may be financially equal, but not lawful.
The law says that not only must a certain minimum number of days be made available for holiday - that is, it is concerned with actual relief from normal duty, not just the financial arithmetic - but also the pay which is attributable to those minimum days must reflect normal earnings.
For workers working 5 days a week, the 5.6 weeks entitlement translates to 28 days. But for part-time workers, or workers who otherwise work less than 5 days a week, the 5.6 weeks translates to less than 28 days.
These are minimums, and there is nothing at face value to prevent an employer offering 28 days holiday to a one-day-a-week man - so that practically speaking, he spends 28 weeks of the year on holiday, and only 24 weeks actually working!
But the law says the one-day-a-week man must be offered 5.6 days holiday a year as a minimum, and the pay he gets on any of those 5.6 days taken as holiday, must be the same as the pay he would receive for the one day a week he normally works. The 0.6 part-day element of this would either have to be taken as a short day, or rounded up to a full day so that the employer complies with the requirement to provide at least the minimum holiday.
The legislation itself is cast in terms of weeks, not days. We only talk of days because practically speaking most people don’t always take whole weeks off at a time, and the legislation does not prevent the taking of holiday as part-weeks (i.e. days, or even part-days or hours).
I worked for an agency for 17 weeks, and my gross taxable was 9500 k. My last 12 weeks average pay was, 616/week… I asked for my holiday pay and received, 5 DAYS = 247.50p gross (nett = 237.50p) i.e. 49.50p / day. Any one like to take a guess how they calculate that ? I do intend to query this, but I would like some more info first. Thanks in advance.