I am having an argument with the powers that be regarding shift allowance being paid when we are on holiday. From what I understand you are meant to be paid it at an average - taken over 12 weeks. According to them we aren’t…
Has anyone already had this argument with their employer ■■ Win / Lose ■■
G
What does it say in your contract?
Shift allowance is an add on … like commission.
Thats why its better to have a good basic and no shift allowance.
Shift allowance is only mentioned in our contract as in “we will be paid it” - no mention to do with holidays. HOWEVER, I have been reliably informed that under the Employment Rights Act it has to be paid when you are on holiday as an average.
G
Holiday pay only legally has to be based on Basic Pay.
There is no legal requirement to include overtime or any shift allowances.
Basically statutory holiday pay is 20 days basic pay pro rata.
Gazzareth:
Shift allowance is only mentioned in our contract as in “we will be paid it” - no mention to do with holidays. HOWEVER, I have been reliably informed that under the Employment Rights Act it has to be paid when you are on holiday as an average.G
Whoever “reliably informed you” was talking out of their backside. The 12 week average only applies to people who are not on regular hours such as agency workers who aren’t working 5 days a week every week. And even then, it only includes basic pay and no overtime, shift allowances or bonuses.
Whoever “reliably informed you” was talking out of their backside
Can you quote a source for your information… Could do with it before I go to the meeting, my source who is obviously wrong is Citizens Advice who responded to my e-mail with:
Under the Employment Rights Act non- contractual overtime is not included when calculating holiday pay. Shift allowances are, however, included and you are correct that this should be averaged over a 12- week period. The following is an excerpt from the ACAS website, www.acas.org.uk -
How is a week’s pay calculated?
For each week of their statutory leave entitlement workers are entitled to be paid a week’s pay calculated in accordance with sections 221-224 of the Employment Rights Act 1996 as follows:
Workers with normal working hours
If a worker’s pay does not vary with the amount of work done then a week’s pay is the amount due for a week’s work under the worker’s contract. Pay for non- contractual overtime is excluded.
If a worker’s pay varies with the amount of work done then the amount of a week’s pay is the pay for the normal weekly working hours multiplied by the workers average hourly rate over the preceding 12 weeks. This may occur under a piece work, bonus or commission system. To calculate the average hourly rate only hours where the worker was working, and the pay related to them, should be taken into account. Overtime hours can be included although pay for these hours should be adjusted to the normal rate. Any week in which no pay was due, for hours worked, should be replaced by the last previous week in which pay was received for hours worked.
Shift and rota workers, whose pay varies because they work their normal hours at varying times and in varying amounts in different weeks, have their week’s pay calculated differently. Their average weekly hours of work, in the preceding twelve weeks, are multiplied by their average hourly rate. The hourly rate is calculated as above and includes any shift allowance which is payable.
Workers with no normal working hours
- If a worker has no normal working hours then a week’s pay is the average pay received over the preceding 12 weeks. Any week for which no pay was due should be replaced by the last previous week for which pay was due.
Cheers
G
Gazzareth:
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Can you quote a source for your information… Could do with it before I go to the meeting, my source who is obviously wrong is Citizens Advice who responded to my e-mail with:
What he said was correct but it doesn’t apply to haulage which is what I assumed you were enquiring about?
Shift allowance is paid because you’re usually on a rotating shift i.e on days one week and on nights another. In haulage, if you’re a parcel company night trunker for example, you sometimes get extra money for working nights but it’s not a shift allowance per se but an “unsocial hours” bonus.
I’ve got the Employment Law CD here but it’s about as useful as a chocolate fireguard as many of these things seem to end up only being set in stone once it’s been to court and a judgement made.
I didn’t realise that haulage was exempt from employment law, can you point me in the direction of a website that gives the information. Obviously CAB must be mistaken since my original e-mail to them clearly states what my employment is.
Good point about the shift allowance / anti-social hours payments - what we get it is an additional anti-social hours rate, which is what I put in my e-mail, in the CAB reply that is changed to Shift Allowance. Although according to ACAS either would be covered by the 12 week average anyway.
G